jasdlm Posted April 9, 2008 Report Share Posted April 9, 2008 Client has $15,601 in AL source income (schedule C - he went there) and $30,162 in SE tax. ATX is calculating a 'Federal Income Tax' deduction (line 7 of part IV) of $23,363 and coming up with a negative AL income so no tax owed. I have read the instructions, and it's not clear to me why client would be able to deduct a larger amount of SE income then what was actually attributable to the AL source income. Anyone with exerience, please help. Thanks. Quote Link to comment Share on other sites More sharing options...
GeneInAlabama Posted April 10, 2008 Report Share Posted April 10, 2008 If he had taxable income on his federal, I can't imagine any scenario that would allow him to have a negative income on the state since the Alabama income is a percentage of the federal return and the same percentage is used for the deductions. Quote Link to comment Share on other sites More sharing options...
jasdlm Posted April 10, 2008 Author Report Share Posted April 10, 2008 Thanks for responding! I finally figured it out. The k1 income, for some reason, was not flowing through to the AL Schedule E, so the % calculation was off. I entered it manually and it makes much more sense, now. Whew! Quote Link to comment Share on other sites More sharing options...
GeneInAlabama Posted April 10, 2008 Report Share Posted April 10, 2008 Everything doesn't always flow to the Alabama form as well as it does to the federal. Sometimes I have to do some head scratching trying to figure out why the state doesn't match out to the federal. Quote Link to comment Share on other sites More sharing options...
Recommended Posts
Join the conversation
You can post now and register later. If you have an account, sign in now to post with your account.