FTI: Schedule of Adjustments to Federal Taxable Income for 20C (2025)
Alabama · Alabama DOR · Used for tax years 2025
Alabama Schedule FTI reconciles federal taxable income from Federal Form 1120, or a pro forma Form 1120, with the income reported on Alabama Form 20C or Form ET-1. It reports differences in federal and Alabama section 163j limitations, other adjustments, and adjusted federal taxa
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 the income reported on line 1 of Alabama Form 20C or Form ET-1.
The form states that the adjustment for differences between federal and Alabama Section 163j limitations applies only to corporate returns.
What you'll need
- Federal Form 1120, including federal taxable income or loss on line 30. Federally consolidated taxpayers use line 30 of the Proforma Federal return.
- Alabama Form 20C or Form ET-1, whose line 1 income is reconciled using this schedule.
- Details of adjustments, such as charitable contributions, capital gains or losses, and taxable gains from Schedule OZ. The form states that Schedule OZ must be completed.
- For the Section 163j limitation adjustment, attach Federal Form 8990, a spreadsheet calculating the Alabama limitation, a schedule of carryforward amounts including third-party and intercompany amounts, and any other supporting documentation.
The schedule also asks for the taxpayer's name and FEIN.
Common mistakes
- Do not leave out the required attachments for the Section 163j limitation adjustment: Federal Form 8990, the Alabama calculation spreadsheet, the carryforward schedule, and other supporting documentation.
- Do not overlook Schedule OZ. The form explicitly states that it must be completed.
- If electing to file as an Alabama consolidated group, refer to the Form 20C-C instructions for more information.
Questions people ask
What is Schedule FTI for?
It reconciles differences between federal taxable income on line 30 of the Proforma Federal Form 1120 and income reported on line 1 of Alabama Form 20C or Form ET-1.
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 the amount from Proforma Federal line 30.
What kinds of adjustments can be listed?
The form gives charitable contributions, capital gains or losses, and taxable gains from Schedule OZ as examples.
How is the total net adjustment calculated?
Line 4 is the total of line 2 and lines 3a through 3j.
Where can an Alabama consolidated group find more information?
The note for the Section 163j adjustment directs taxpayers electing to file as an Alabama consolidated group to the Form 20C-C instructions. It also refers to Act 2021-1, Section 9.