Alabama Administrative Code › Title 810 - ALABAMA DEPARTMENT OF REVENUE › Chapter 810-3-19 - EXEMPTIONS - GENERALLY › Section 810-3-19-.02 - Personal Exemptions And Credit For Dependents

Current through Register Vol. 42, No. 9, June 28, 2024
(1)
(a)
			 General Rule - Resident or Part-year Resident Taxpayers. A single person, or a
			 married person not filing a tax return with their spouse, is entitled to a
			 personal exemption of fifteen hundred dollars ($1,500.00). A head of a family
			 or a married couple filing a joint return is entitled to a personal exemption
			 of three thousand dollars ($3,000.00). If a married couple file separate
			 returns, each must claim a personal exemption of fifteen hundred dollars
			 ($1,500.00).
1. A common law marriage is
			 recognized in Alabama for income tax purposes.
2. Head of Family - years ending before
			 January 1, 1990:
(i) An individual is a head
			 of family within the meaning of §
											40-18-19 only if he actually supports or maintains in his household one or more
			 dependents (as defined in subparagraph (b)l. below). All of the six factors
			 described below are essential to qualify as head of family:
(I) Taxpayer must be unmarried, and
(II) Taxpayer must provide over fifty percent
			 (50%) of the actual support of the dependent and be entitled to claim the
			 exemption for such dependent on his income tax return, and
(III) The dependent(s) must reside in a
			 household maintained by the taxpayer, and
(IV) The taxpayer must have the right to
			 exercise family control over the dependent(s), and
(V) The taxpayer must be related to the
			 dependent(s) as defined in subpart (b) below and must have a legal or moral
			 obligation to support the dependent(s), and
(VI) The dependent must not have independent
			 means and must be actually dependent upon the taxpayer for support.
(ii) Head of family - years
			 beginning after December 31, 1989. The term "head of family" has the same
			 meaning as "head of household" as described in  26 U.S.C. §
												2(b)  for
			 federal income tax purposes. The judicial and administrative decisions and
			 interpretations of  26 U.S.C. §
												2(b)  will be given due weight in
			 interpreting §
											40-18-19 as it relates to head of family status.
(I)
			 To be head of family, the taxpayer must be unmarried, or considered unmarried,
			 at the close of the taxable year and not be entitled to claim married filing
			 joint return, as in the year of a spouse's death. The taxpayer is considered
			 not married under  26 U.S.C. §
													2(b)  if -
(A) the taxpayer has been legally separated
			 from his spouse under a decree of divorce or of separate maintenance,
			 or
(B) at any time during the
			 taxable year the taxpayer's spouse was a nonresident alien as recognized for
			 federal income tax purposes.
(II) The taxpayer must maintain as his home a
			 household which also serves as the principal place of abode for any of the
			 following persons -
(A) a son, stepson,
			 daughter, or stepdaughter of the taxpayer, or a descendent of a son or
			 daughter, but only if the son, daughter, stepson, stepdaughter, or descendent
			 is unmarried at the end of the taxable year, except when the taxpayer is
			 entitled to a deduction for the taxable year for the exemption of such son,
			 daughter, stepson, stepdaughter, or descendent, or would be so entitled except
			 that the right to claim such dependent exemption had been relinquished by
			 reason of a signed agreement or court's declaration which provides that the
			 noncustodial parent may claim any deduction allowable for the dependent
			 exemption; or
(B) any other person
			 who is a dependent of the taxpayer, as described in subpart (b), below, if the
			 taxpayer is entitled to a deduction for the taxable year for a dependent
			 exemption for that person, but
(C)
			 if the dependent described in the above provisions would not be a dependent but
			 for -
I. the person has as his principal
			 place of abode the home of the taxpayer and is a member of the taxpayer's
			 household, or
II. the person may be
			 claimed as a dependent under a multiple support agreement as described in  26 U.S.C. §
															152(c):
then the taxpayer is not entitled to claim the status of head
				of family.
(III) The father or mother of the taxpayer
			 may qualify the taxpayer as head of family, but only if the taxpayer is
			 entitled to the dependent exemption for the father or mother. The taxpayer must
			 maintain a household which constitutes the principal place of abode of the
			 taxpayer's dependent father or mother, or both, and provide more than one-half
			 of the support of the father or mother. It is not necessary for the taxpayer to
			 reside in the same place of abode as the parent, as is required for other
			 dependents, for the taxpayer to qualify as head of family.
(IV) Maintaining a household for another
			 person is defined as providing more than one-half of the cost of maintaining
			 the home for that person.
(V) Under
			 no circumstances shall the same person be used to qualify more than one
			 taxpayer as the head of family for the same taxable year.
(VI) If, at any time during the taxable year,
			 the taxpayer is a nonresident alien as recognized for federal income tax
			 purposes, the head of family status will not be allowed.
4. Unless otherwise provided (see
			 subparagraph (a)(ii) above),the status of a taxpayer as single, married or head
			 of family will be determined on the last day of the Alabama tax year.