Confirmed for 2023 Taxes 01/18/24

Follow instructions for Schedule A Line 20.  See Alabama Form 40 Booklet for instructions.

Alabama Form 40 Booklet 2023


Job Related Expenses

The Federal Tax Cuts and Jobs Act did not limit who may deduct job related expenses for Alabama Income Tax purposes. Alabama uses the Federal Form 2106 to compute the amount of Employee Business Expenses deductible.  Taxpayers claiming employee business expenses on their Alabama Income Tax Return should ignore the statement on the 2018 Federal Form 2106 that  indicates that form is “for use only by Armed Forces reservists, qualified performing artists, fee-basis state or local government officials, and employees with impairment-related work expenses”.  This statement only applies to the Federal Income Tax Return.

The Federal Form 2106 should be used to compute the amount of Employee Business Expenses deductible for Alabama if:

  1. You claim any travel, transportation or meal expenses for your job; OR
  2. Your employer paid you for any of your job expenses.

If 1 or 2 above applies, Federal Form 2106 should be completed and the net deductible amount should be entered on line 20 of the Alabama Schedule A.

Other unreimbursed job related expenses may be listed on the space provided on Alabama Schedule A Line 20. If you need more space, attach a statement showing the type and amount of the expense.