40: 2025 Alabama Individual Income Tax Return – Residents & Part-Year Residents (2025)
Alabama · Alabama DOR · Used for tax years 2025
Alabama Form 40 is the 2025 individual income tax return for residents and part-year residents. It reports income, adjustments, deductions, tax, credits, and payments to calculate the amount you owe or your refund.
Who files this form
Alabama Form 40 for tax year 2025 is for residents and part-year residents. In Part IV, select full-year or part-year residency. Part-year residents must enter their dates of Alabama residency in 2025.
The supplied form does not state income thresholds or other rules that determine whether you must file.
What you'll need
Gather the documents and information that apply to your return:
- Income forms: Staple Forms W-2, W-2G, and/or 1099 where marked on the return. Attach Schedule W-2.
- Your 2025 federal return: Part IV asks for federal adjusted gross income and federal taxable income. If claiming the federal tax deduction on line 12, attach pages 1 and 2 and Schedule 1 of your federal return, if applicable.
- Income schedules: Attach Schedule B if interest and dividend income exceeds $1,500. Other income may require Federal Schedule C or C-EZ, Schedule D, Schedule RS, Schedule E, or Federal Schedule F, as indicated in Part I.
- Deduction forms: Use Schedule A if itemizing. The schedule calls for Form 4952A for investment interest, Form 4684 for casualty and theft losses, Federal Form 8283 for noncash charitable contributions over $500, and Federal Form 2106 if required. Attach Federal Form 3903 for moving expenses.
- Dependent information: Schedule DS asks for dependents’ names, Social Security numbers, relationships, and support information. Complete Schedule HOF if claiming Head of Family status.
- Home buyer savings account records: If claiming a deposit deduction or excluding account interest, submit Schedule HBC and account statements showing all transactions. The schedule also requires a 1099 for interest or earnings, a closing statement for a home purchase, and statements for both accounts if funds were transferred to another qualifying account.
- Direct deposit information: Have your routing number, account number, and account type available if requesting direct deposit.
How to file
- Complete Part IV, General Information. The form says all taxpayers must complete this section.
- Attach the schedules and income forms required for your return.
- Sign the return on page 2 in black ink. Both spouses must sign a joint return.
- If mailing a payment, place the payment and Form 40V loose in the mailing envelope. Form 40V must accompany the payment.
- Keep a copy of the return for your records.
The supplied text does not provide a mailing address or instructions for e-filing Form 40.
Common mistakes
- Leaving line 11 unchecked: You must select box a for itemized deductions or box b for the standard deduction.
- Using W-2 federal withholding on line 12: The form specifically says not to enter federal tax withheld from Forms W-2 as the federal tax deduction.
- Forgetting signatures: Sign page 2. Both spouses must sign if filing jointly.
- Sending payment without Form 40V: The voucher must accompany payment and be placed loose in the mailing envelope with it.
- Including reimbursed expenses on Schedule A: Do not include expenses reimbursed or paid by others. Part-year residents should list only deductions actually paid while Alabama residents.
- Listing yourself or your spouse as a dependent: Schedule DS says not to include either. If married filing separately, claim only dependents for whom you separately provided more than 50% of total support.
- Omitting Schedule HBC: If claiming a home buyer savings account deposit deduction or interest exclusion, failure to include this schedule results in automatic denial of the deduction or exclusion.
Questions people ask
When do I need Schedule B?
Complete and attach Schedule B if you received more than $1,500 in interest and dividend income.
How do I request direct deposit?
Check the direct deposit box on page 1 and complete Part V on page 2. Enter your routing number, account type, and account number, and answer whether the refund will go to or through an account outside the United States. The form refers to the instructions for eligibility details, which are not included in the supplied text.
Can I apply an overpayment to next year’s estimated tax?
Yes. Line 33 lets you apply an amount from your 2025 overpayment to your 2026 estimated tax.
Can I donate part of my overpayment?
Yes. Schedule DC allows you to donate all or part of your overpayment to the listed funds and programs. Enter total donations on Schedule DC, line 2, and Form 40, line 34.
How do I identify an amended return?
Check the amended return box on page 1. Lines 24 and 28 are for previous payments and the previous refund on amended returns only. The form refers to the instructions for details on those entries.