Federal Income Tax Deduction Worksheet: Federal Income Tax Deduction Worksheet (2025)
Alabama · Alabama DOR · Used for tax years 2025
The Federal Income Tax Deduction Worksheet calculates the deduction amount to enter on Alabama Form 40, Form 40A or Form 40NR. It adds federal income tax and net investment income tax, then subtracts specified credits, with a minimum result of zero.
What you'll need
The worksheet uses amounts from these 2025 federal tax forms, as applicable:
- Form 1040, Form 1040-SR, or Form 1040-NR: Line 22 for federal tax, line 28 for the Additional Child Tax Credit, and line 30 for the Refundable Adoption Credit.
- Form 1040 or Form 1040-SR: Line 27a for the Earned Income Credit and line 29 for the American Opportunity Credit.
- Form 8960: Line 17 for Net Investment Income Tax.
- Schedule 3, Part II: Line 13a for credits from Forms 2439.
Questions people ask
How do I calculate federal tax on worksheet line 3?
Add the tax from line 22 of your 2025 Form 1040, Form 1040-SR, or Form 1040-NR to the Net Investment Income Tax from line 17 of your 2025 Form 8960. Enter the total on worksheet line 3.
Which credits does the worksheet subtract?
Lines 4a through 4e list the Earned Income Credit, Additional Child Tax Credit, American Opportunity Credit, Refundable Adoption Credit, and credits from Forms 2439. Add these amounts on line 5, then subtract line 5 from line 3.
What if the result is negative?
Enter zero on worksheet line 6 if line 3 minus line 5 is negative.
Where do I enter the final deduction 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.