HB98 Alabama 2020 Session

Updated Feb 26, 2026

Notable

Summary

Primary Sponsor: Rod Scott
Democrat
Session: Regular Session 2020
Title: Taxation, individual income tax, simplified short form, allow up to fifteen hundred of interest and dividend income, Sec. 40-18-15.7 am'd.
Summary: HB 98 would let eligible Alabama taxpayers report up to $1,500 of interest and dividend income on the simplified individual income tax form when they choose the optional increased standard deduction.
What This Bill Does
It authorizes reporting up to $1,500 of non-wage income (interest and dividends) on the Alabama simplified short form for filers who qualify for the optional increased standard deduction. It changes the eligibility rules and standard deduction amounts for those filers and requires they forego the federal deduction and other deductions or credits. It also directs the Department of Revenue to implement the changes and allow filing on the simplified form for tax years starting after December 31, 2020.

Who It Affects
Taxpayers who qualify for the optional increased standard deduction (income under $100,000, single or married filing jointly, no dependents, no itemized deductions, no adjustments, etc.) and who have up to $1,500 of interest or dividend income; they would file the simplified form and report this income.
Alabama's tax system and Department of Revenue, which must administer the new rule, set the new standard deduction amounts, and issue guidance or rules to implement the change.

Key Provisions
Allows up to $1,500 of interest and dividend income to be reported on the Alabama simplified short form by taxpayers eligible for the optional increased standard deduction.
Amends Section 40-18-15.7 to establish eligibility criteria for the optional increased standard deduction and to set higher standard deduction amounts: Single filers $2,250 (or the greater of that or the standard deduction under 40-18-15); Married filing jointly $4,500 (or the greater standard deduction), whichever is greater.
Requires eligible taxpayers to forego the federal deduction and any other deductions, credits, or exemptions that would otherwise be available.
Requires filing on the simplified short form and authorizes the Department of Revenue to issue rules to help administer the section.
Effective for tax years beginning after December 31, 2020 (immediate effect upon enactment).

AI-generated summary using openai/gpt-5-nano on Feb 22, 2026. May contain errors — refer to the official bill text for accuracy.
Subjects: Taxation