ALDOR has updated its Act 2022-37 information to aid with some issues concerning the new FIT worksheet calculation. Our hope is that ALDOR’s assistance on the calculation is helpful in cases where the tax prep software has been updated to transmit the new schedule – but the calculation has not been automated by their software. For questions, please call 334-242-9692. 

https://revenue.alabama.gov/arpa-tax-relief/

The recently updated language denotes as follows:

***Update – while software vendors have made changes to their software to handle the updated FIT deduction worksheet, we understand that some software packages have not been updated to automatically make the 2020 alternate calculations required in Part II Lines 3, 4, 8b and 9e and are requiring the preparer to make the calculations outside the software and enter the results in the software’s FIT Deduction worksheet. While the software vendors are still working on implementing the required calculations, preparers may have ALDOR make the additional calculations by entering ”9999999999” on the FIT worksheet, Part II, Line 3 – for any returns where they do not manually recalculate the 2020 amounts. Some software packages are programmatically doing this for the client. By entering “9999999999” in Part II Line 3, the deduction will be tentatively calculated based on Part I of the worksheet and will instruct ALDOR systems to make the alternate 2020 calculations in Part II and update the FIT deduction as necessary when processing the return. 

Caution – if not using the “9999999999” to have ALDOR calculate Part II Lines 3, 4, 8b and 9e, do not default to entering all zeros in these fields or leave them blank unless they are computed to be zero, defaulting all of these fields to zero or blank may overstate the deduction and subject the deduction to be reduced on review.