Schedule RS: Retirement Schedule (2024)
Alabama · Alabama DOR · Used for tax years 2024
Alabama Schedule RS is the 2024 Retirement Schedule attached to Form 40 or Form 40NR. It reports exempt and taxable retirement distributions, calculates taxable retirement income after any retirement exclusion, and totals Alabama income tax withheld from retirement distributions.
Who files this form
Schedule RS reports retirement distributions that are exempt from Alabama income tax or fully or partially taxable to Alabama.
The form says you must fully complete Schedule RS and include it with your Form 40 or Form 40NR to receive proper credit for Alabama income tax withheld from retirement distributions.
What you'll need
- Copies of all withholding statements, Form 1099-R, to attach to your return.
- Your Form 40 or Form 40NR, with Schedule RS attached.
- Names as shown on your tax return and the primary taxpayer’s and spouse’s Social Security numbers.
Schedule RS asks for each distribution’s FEIN, IRA indicator, distribution codes, account number, gross distribution, state code, state ID, and Alabama tax withheld. It also asks for either the reason the distribution is exempt or the amount taxable to Alabama.
How to file
Attach the completed Schedule RS to Form 40 or Form 40NR. Attach copies of all Form 1099-R withholding statements to your return.
- Report exempt retirement distributions in Part I, the primary taxpayer’s fully or partially taxable distributions in Part II, and the spouse’s fully or partially taxable distributions in Part III.
- Carry the total taxable retirement distribution from Part IV, line 3, to Form 40, page 2, Part 1, line 4, or Form 40NR, page 2, Part 1, line 3, column B.
- Include the total Alabama tax withheld from Part V, line 4, in Schedule W-2, line 17.
The supplied form does not give a mailing address or e-filing instructions.
Common mistakes
- Leaving Schedule RS incomplete or omitting it from your return. The form says it must be fully completed and included to receive proper credit for Alabama income tax withheld.
- Forgetting to attach copies of all Form 1099-R withholding statements.
- Claiming the retirement exclusion when the taxpayer does not meet the form’s age and taxable-retirement requirements. If the answer to the eligibility question is “No,” the form says to skip the exclusion and go to line 11.
- Claiming an exclusion greater than $6,000 or greater than the retirement income taxable to Alabama on line 9.
Questions people ask
Can I claim a retirement exclusion?
The form asks whether you are 65 or older and receive taxable retirement income. If yes, the exclusion is up to $6,000, but no more than the retirement income taxable to Alabama on line 9. If no, you do not qualify for this exclusion.
Does my spouse have a separate retirement exclusion?
Part III applies the same eligibility question and limit separately to the spouse: age 65 or older with taxable retirement income, up to $6,000 and no more than the spouse’s taxable retirement income on line 9.
Where do I report retirement distributions exempt from Alabama income tax?
Report them in Part I, including the reason for exemption and any Alabama tax withheld. Carry the withholding total from Part I, line 8, to Part V, line 1.
Where does my total retirement withholding go?
Add the withholding amounts in Part V, lines 1 through 3. Enter the total on Part V, line 4, and include it in Schedule W-2, line 17.