1. (1) An employee or other payee from whose wages or other remuneration income tax is withheld, and/or a recipient of proceeds from a wager from which income tax was withheld pursuant to §40-18-91, Code of Ala. 1975, is allowed a credit for the amount withheld on his or her income tax return for the tax year during which the tax was withheld.

   1. (b) In the case of withholding from proceeds of a wager, credit will only be allowed if a copy of the statement required to be furnished the recipient under Rule 810-3-75-.01, is attached to the return of the claimant of the credit.
   2. (c) In the case of withholding from a nonwage payment, credit will only be allowed if a copy of the Form 1099 or other information return is attached to the return of the claimant of the credit.

   (2)(a) Credit will be allowed only if a copy of the withholding statement, Form W-2, is attached to the return.

2. (3) A fiscal year taxpayer is allowed a credit on the fiscal year return for income taxes withheld during the calendar year which ends within the fiscal year. For example, a taxpayer having a fiscal year ending July 31, 2014, is entitled to credit for tax withheld during calendar year 2013.

Author: Neal Hearn

Statutory Authority: Code of Ala. 1975, §§40-2A-7(a)(5), 40-18-78.

History: Adopted September 30, 1982. Amended June 17, 1988; Amended February 8, 1989, filed March 20, 1989; effective April 24, 1989. Amended: Filed August 26, 1994; effective September 30, 1994. Amended: Filed May 3, 2000; effective June 7, 2000. Amended: Filed July 17, 2015; effective August 21, 2015. Amended: Published October 31, 2024; effective December 15, 2024.