Increases the tax exemption for pensions and annuities for persons age fifty-nine and one-half or greater from $20,000 to $25,000 in 2025, $30,000 in 2026, $35,000 in 2027 and $40,000 for each subsequent year.
Increases the tax exemption for pensions and annuities for persons age fifty-nine and one-half or greater from $20,000 to $25,000 in 2027, $30,000 in 2028, $35,000 in 2029 and $40,000 for each subsequent year.
Increases the tax exemption for pensions and annuities for persons age fifty-nine and one-half or greater from $20,000 to $25,000 in 2027, $30,000 in 2028, $35,000 in 2029 and $40,000 for each subsequent year.
Relating to income taxes; to amend Section 40-18-19, Code of Alabama 1975, as last amended by Act 2022-292, Act 2022-294, and Act 2022-297 of the 2022 Regular Session of the Legislature; to increase the exemption for taxable retirement income for individuals who are 65 years of age or older.
Relating to income taxes; to amend Section 40-18-19, Code of Alabama 1975, as last amended by Act 2022-292, Act 2022-294, and Act 2022-297 of the 2022 Regular Session of the Legislature; to increase the exemption for taxable retirement income for individuals who are 65 years of age or older.
Allows a modification to federal adjusted gross income of fifty thousand dollars ($50,000) of taxable pension and/or annuity income for tax years beginning on or after January 1, 2025.
Allows for a one-time two percent (2%) supplemental cost of living adjustment for plan year 2025 to the public pension benefits administered by the ERSRI, and allows for those benefits to be deducted from the taxpayer's adjusted gross income.
Excludes all overtime earned by an individual from adjusted gross income for tax years 2025 and 2026 and defines overtime as payment of at least 1½ times the rate of regular pay for hours worked over the standard forty (40) hours.
Increases the federal adjusted gross income threshold for modification for taxable social security income. Amends references to federal adjusted gross income as pertains to modification of taxable retirement income from certain pension plans or annuities.
Allows for a one-time two percent (2%) supplemental cost of living adjustment for plan year 2025 to the public pension benefits administered by the ERSRI, and allows for those benefits to be deducted from the taxpayer's adjusted gross income.