FTI: Schedule of Adjustments to Federal Taxable Income (2024)
Alabama · Alabama DOR · Used for tax years 2024
Alabama Schedule FTI reconciles federal taxable income from Federal Form 1120 or a pro forma Federal Form 1120 with the amount reported on Alabama Form 20C or Form ET-1. It reports adjustments, total net adjustments, and the adjusted federal taxable income carried to the Alabama
Who files this form
Schedule FTI is used to reconcile differences between federal taxable income on line 30 of the Proforma Federal Form 1120 and federal taxable income reported on line 1 of Alabama Form 20C or Form ET-1.
The adjustments for the federal and Alabama 163j limitation and federal Global Intangible Low-Taxed Income (GILTI) provisions apply only to corporate returns.
What you'll need
- Federal Form 1120 showing taxable income or loss on line 30. Federally consolidated taxpayers use line 30 of the Proforma Federal Form 1120.
- Alabama Form 20C or Form ET-1, whose line 1 must match the adjusted federal taxable income on Schedule FTI.
- For the line 2 adjustment: Federal Form 8990, a calculation spreadsheet for the Alabama limitation, a schedule of carryforward amounts including third-party and intercompany amounts, and any other supporting documentation. The form requires these attachments.
- Schedule OZ, which the form says must be completed when discussing adjustments such as taxable gains from that schedule.
Common mistakes
- Leaving out the required line 2 attachments, including Federal Form 8990, the Alabama limitation calculation spreadsheet, and the carryforward schedule.
- Overlooking the requirement to complete Schedule OZ in the instructions for line 4 adjustments.
- Using the line 2 or line 3 adjustments for a noncorporate return. Both are marked as applying only to corporate returns.
- Not consulting the Form 20C-C instructions when electing to file as an Alabama consolidated group. The line 2 note directs these filers to those instructions.
Questions people ask
What amount goes on line 1?
Enter the corporation’s federal taxable income or loss from Federal Form 1120, line 30. Federally consolidated taxpayers use line 30 of the Proforma Federal Form 1120.
What differences should I list on line 4?
List differences between taxable income on line 30 of the Proforma Federal Form 1120 and line 1 of Alabama Form 20C or Form ET-1. Examples include charitable contributions, capital gains or losses, and taxable gains from Schedule OZ. The form says Schedule OZ must be completed.
How do I calculate total net adjustments?
On line 5, total the adjustment amounts from lines 2, 3, and 4a through 4j.
Where does the adjusted federal taxable income go?
Add line 1 and line 5 and enter the result on line 6. That amount must match line 1 on page 1 of Alabama Form 20C or Form ET-1.