SB191 Alabama 2020 Session

Summary

Primary Sponsor

Hank Sanders

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

SB191 would let eligible Alabama filers using the simplified short form report up to $1,500 of interest and dividend income and apply higher standard deduction amounts when they elect the optional increased deduction.

What This Bill Does

It would allow up to $1,500 of interest and dividend income to be reported on the Alabama simplified short form for those who qualify for the optional increased standard deduction. It sets higher standard deduction amounts of $2,250 for single filers and $4,500 for married filing jointly, whichever is greater than the regular deduction. It also allows a personal exemption for these filers but limits them to the personal exemption and the optional increased standard deduction, requiring them to forego the federal deduction and any other deductions or credits and to file on the simplified form. The Department of Revenue is allowed to issue rules to administer these changes, and the act applies to tax years beginning after December 31, 2020.

Who It Affects

• Eligible Alabama residents who file the simplified short form (single or married filing jointly) and meet all criteria (income under $100,000; up to $1,500 in interest/dividend income; no dependents or no dependent-related deductions; no itemized deductions; no adjustments to income; no credits; not required to make estimated payments; no gains or losses) will be able to report non-wage income and use the higher standard deduction.
• The Alabama Department of Revenue and tax preparers who administer the tax system, provide guidance, and implement the new rules related to the simplified form, deductions, and filing requirements.

Key Provisions

• Allows up to $1,500 of interest and dividend income to be reported on the Alabama simplified short form for eligible filers.
• Establishes optional increased standard deduction amounts: $2,250 for single filers and $4,500 for married filing jointly, whichever is greater than the regular standard deduction.
• Allows the personal exemption for those using the optional increased standard deduction, but restricts other exemptions/deductions to only the personal exemption and the optional increased standard deduction.
• Requires electing filers to forego the federal income tax deduction and any other deductions, credits, and exemptions available otherwise.
• Requires filing on the simplified short form and allows the Department to issue administrative rules to support implementation.
• Effective for tax years beginning after December 31, 2020.

AI-generated summary using openai/gpt-5-nano on Feb 23, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Taxation