Member Update:

Well, we have good news and a little bad news. Senator Dan Roberts’ and Rep. Jim Carns’ bill that restores the lost Federal income tax deduction for recipients of the ARPA-enhanced child tax credit, earned income tax credit and/or dependent care tax credit during 2021 passed unanimously in the Senate yesterday. With some minor tweaking the amended bill should be on the Governor’s desk by the middle of next week. She has already committed to sign it into law. That’s good news for those affected taxpayers who haven’t already filed their Alabama tax return, but for those who have, an amended return likely will be required.

We recommend delaying the filing of affected returns until the Governor signs the bill and hopefully the ADOR issues filing guidance. And for those clients who’ve already filed, wait a few weeks and let’s see if the ADOR issues some sort of expedited refund procedure or perhaps allows TPs to wait until next year and claim the deduction on their 2022 return. Your ASCPA leadership has already been in communication with them. More details to come!