Federal Income Tax Deduction Worksheet: Federal Income Tax Deduction Worksheet (2024)
Alabama · Alabama DOR · Used for tax years 2024
The Federal Income Tax Deduction Worksheet calculates the deduction amount to enter on Form 40, Form 40A, or Form 40NR. It adds federal income tax and Net Investment Income Tax, then subtracts the listed federal credits, with a minimum result of zero.
What you'll need
The worksheet uses amounts from these federal tax forms, as applicable:
- 2024 Form 1040, 1040-SR, or 1040NR: line 22 for tax and line 28 for the Additional Child Tax Credit.
- 2024 Form 1040 or 1040-SR: line 27 for the Earned Income Credit and line 29 for the American Opportunity Credit.
- 2024 Form 8960: line 17 for Net Investment Income Tax.
- Schedule 3, Part II, line 13a of your 2024 federal return: for credits from Forms 2439.
Questions people ask
How do I calculate federal tax on worksheet line 3?
Enter the tax from line 22 of your 2024 Form 1040, 1040-SR, or 1040NR on worksheet line 1. Enter the Net Investment Income Tax from line 17 of 2024 Form 8960 on worksheet line 2. Add those amounts on line 3.
Which credits are subtracted?
Lines 4a through 4d list the Earned Income Credit, Additional Child Tax Credit, American Opportunity Credit, and credits from Forms 2439. Add these on line 5, then subtract line 5 from line 3 to calculate line 6.
What if the result on line 6 is negative?
Enter zero instead of a negative amount.
Where do I enter the worksheet result on my Alabama return?
Enter the amount from worksheet line 6 on Form 40, line 12; Form 40A, line 9; or Form 40NR, page 2, Part IV, line 4.