Alabama Estimated Taxes for Individuals

Alabama taxpayers are required to make estimated tax payments if their income from sources other than wages for the year can be reasonably expected to exceed $3,750 for married taxpayers filing a joint return, or $1,875 for all others. In general, the dates for making Alabama estimated tax payments are the same as those for federal, the 15th day of the fourth, sixth, and ninth months of the taxable year, and the 15th day of the first month of the following year. As the table below illustrates, payments are required only from the time the threshold level of non-wage income has been earned. For example, if a single taxpayer earns less than $1,875 of non-wage income in the period from January 1 through April 1, he is not required to make an April 15 payment.

Number of Payments

The number of payments required is dependent on when the threshold income is earned. For example, if a single taxpayer meets the threshold amount after April 1 and before June 2, she must begin paying estimated tax on June 15, and she will make three equal payments on June 15, September 15 and January 15.

Farmers

As is the case with so much of the tax law, special, more lenient rules apply to farmers. They can pay their estimated tax any time on or before February 15 of the following year without penalty, and if they file their return and pay the tax in full by February 28, they are still not subject to penalty. For purposes of this provision, an individual is a "farmer" if at least two thirds of his gross income is from farming.

ADOR No Longer Mails Out Vouchers

The Alabama Department of Revenue announced on March 28, 2005 that it would no longer mail out booklets of estimated tax vouchers to taxpayers. Taxpayers can download the vouchers from the ADOR web site

This page last updated 5/30/05