Alabama Administrative Code › Title 810 - ALABAMA DEPARTMENT OF REVENUE › Chapter 810-3-19 - EXEMPTIONS - GENERALLY › Section 810-3-19-.01 - Exempt Retirement Allowances

Current through Register Vol. 42, No. 9, June 28, 2024
(1) Income received from retirement systems
			 that is totally exempt from Alabama income tax is as follows:
(a) Retirement allowances, pensions,
			 annuities, or optional allowances paid by the Alabama Teachers' Retirement
			 System, the Alabama Judicial Retirement System, and the Alabama Employees'
			 Retirement System; and
(b)
			 retirement annuities paid under the United States Retirement System to civil
			 service employees from the United States government civil service retirement
			 and disability fund including income received from the Tennessee Valley
			 Authority's pension system, income received as annuities under the United
			 States foreign service retirement and disability fund or income received from
			 any other United States government retirement and disability fund.
(c) amounts received under the Federal Social
			 Security Acts.
(d) retirement
			 annuities paid under the provisions of the Federal Railroad Retirement Act of
			 1935, 1937, and 1974.
1. The exclusion for
			 Railroad Retirement Act benefits includes both tier one and tier two
			 benefits.
(e) military
			 retirement (see §
									40-18-20).
(f) For tax years beginning
			 after December 31, 1990, any retirement compensation, retirement allowances,
			 pensions and annuities, or optional allowances received by any eligible peace
			 officer, as defined in §
									36-21-60(10),
			 or his/her designated beneficiary, from any police retirement system
			 established in the State of Alabama, but only if such retirement compensation,
			 retirement allowances, pensions and annuities, or optional allowances are
			 awarded as a result of police services rendered.
1. An eligible peace officer as defined in
			 §
										36-21-60(10) is:
"A person duly sworn as a peace officer of the State of Alabama
				possessing powers of arrest and employed by the state, any political
				subdivision thereof or any municipal corporation therein who is required by the
				terms of his employment, whether such employment exists by virtue of election
				or appointment, to give his full time to the preservation of public order and
				the protection of life or property or the detection of crime in the state. Such
				terms shall include enforcement officers for conservation laws and full-time
				coroners, but shall not include any pardon, parole or probation officer,
				district attorney, assistant district attorney, assistant attorney general,
				commissioner, deputy commissioner or any municipal inspector, county inspector
				or state inspector."
(g) For tax years beginning after December
			 31, 1990, any retirement compensation, retirement allowances, pensions and
			 annuities, or optional allowances received by any eligible firefighter (as
			 defined in §§
									36-32-1 and
			 36-32-2), or his/her designated beneficiary, from any firefighting agency established
			 in the State of Alabama, but only if such retirement compensation, retirement
			 allowances, pensions and annuities, or optional allowances are awarded as a
			 result of fire protection services rendered.