Schedule RS: Retirement Schedule (2025)
Alabama · Alabama DOR · Used for tax years 2025
Alabama Schedule RS is a retirement schedule attached to Form 40 or Form 40NR. It reports exempt and taxable retirement distributions, calculates Alabama taxable retirement income after any applicable retirement exclusion, and totals Alabama income tax withheld from retirement di
Who files this form
Schedule RS must be completed fully and included with Form 40 or Form 40NR to receive proper credit for Alabama income tax withheld from retirement distributions.
The schedule has separate parts for retirement distributions exempt from Alabama income tax, the primary taxpayer’s fully or partially taxable distributions, and the spouse’s fully or partially taxable distributions.
What you'll need
- Copies of all withholding statements, Form 1099-R, to attach to your return.
- Your name or names as shown on the tax return, plus the primary taxpayer’s and spouse’s Social Security numbers.
- Retirement distribution details requested on the schedule: FEIN, IRA status, distribution codes, account number, gross distribution, state code, state ID, and Alabama tax withheld.
- The reason a distribution is exempt, or the amount taxable to Alabama, depending on the part being completed.
How to file
Complete Schedule RS fully and attach it to Form 40 or Form 40NR. Attach copies of all Form 1099-R withholding statements to your return.
- Use Part I for exempt retirement distributions, Part II for the primary taxpayer’s fully or partially taxable distributions, and Part III for the spouse’s fully or partially taxable distributions.
- In Parts II and III, total taxable retirement income and complete the retirement exclusion question. Subtract the exclusion on line 10 from line 9 to get line 11.
- In Part IV, combine the taxable amounts from Parts II and III. Transfer the total to Form 40, page 2, Part 1, line 4, or Form 40NR, page 2, Part 1, line 3, column B.
- In Part V, total Alabama withholding from Parts I, II, and III. Include this total on 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 not including it with the return. The form says it must be completed fully 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 answer to the age-and-taxable-retirement question is “No.” The form directs you to skip to line 11.
- Claiming an exclusion greater than $6,000 per eligible taxpayer or greater than that taxpayer’s retirement income taxable to Alabama on line 9.
Questions people ask
What is the retirement exclusion on the 2025 schedule?
A taxpayer who is 65 or older and receives taxable retirement is eligible for an exclusion of up to $6,000. It cannot exceed that taxpayer’s retirement income taxable to Alabama on line 9.
Can my spouse also qualify for the exclusion?
Yes. Part III asks separately whether the spouse is 65 or older and receives taxable retirement. If yes, the spouse is eligible for up to $6,000, limited to the spouse’s taxable retirement income on line 9.
Where do I report Alabama tax withheld from exempt retirement distributions?
Report it in Part I, column H. Total lines 1–7 on line 8, then enter that amount in Part V, line 1.
Where does the total retirement withholding go?
Add Part V, lines 1, 2, and 3, and enter the total on line 4. Include that amount on Schedule W-2, line 17.