SB19 Alabama 2022 Session

Summary

Primary Sponsor

Arthur OrrSenator

Republican

Co-Sponsors

Gerald H. AllenWill BarfootTom ButlerClyde ChamblissChris ElliottSam GivhanAndrew JonesSteve LivingstonTim MelsonGreg J. ReedClay ScofieldJ.T. WaggonerTom WhatleyJack W. Williams

Session

Regular Session 2022

Title

Income tax, optional standard deduction amount and adjusted gross income range allowable for maximum optional standard deduction and dependent exemption, increased, Secs. 40-18-15, 40-18-19 am'd.

Summary

SB19 raises Alabama's optional standard deduction and expands the income ranges for the maximum deduction and dependent exemptions.

What This Bill Does

If enacted, it updates the optional standard deduction amounts for different filing statuses starting with tax year 2022, setting higher baseline deductions and a per-amount phase-out. It also broadens the adjusted gross income (AGI) ranges that qualify for the maximum optional standard deduction and for dependent exemptions, potentially increasing the number of people who can claim larger deductions or exemptions. The changes apply to residents and, for nonresidents, are adjusted proportionally based on Alabama-sourced income. The act becomes effective immediately upon passage, with specific deduction rules applying to years after 2021.

Who It Affects

• Alabama resident individual taxpayers (single, head of family, married filing jointly, and married filing separately) who may qualify for a larger optional standard deduction and higher thresholds for the maximum deduction due to the expanded AGI ranges.
• Taxpayers with dependents (and their dependents) who may receive larger dependent exemptions under the expanded AGI ranges.

Key Provisions

• Section 40-18-15: Beginning with tax years after 2021, the optional standard deduction for married couples filing jointly is $8,500 for AGI under $25,500, with a phase-out of $175 for each $500 over $25,500 (minimum $5,000); $4,250 for married filing separately (with a phase-out); $5,200 for head of family (with a phase-out); and $3,000 for single filers (with a phase-out).
• Section 40-18-19: Dependent exemptions are increased and adjusted by AGI, with $1,000 per dependent for AGI up to $50,000 and $500 per dependent for AGI between $50,000 and $100,000 (and the same definition of dependent applying).
• Section 1: The act is effective immediately upon passage, with the updated deduction and exemption provisions applicable to the specified tax years.

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