MONTGOMERY, Ala. (WSFA) - The Alabama Department of Revenue, or ALDOR, issued guidance for taxpayers and employers regarding tax relief measures included in Gov. Kay Ivey’s proclamation.
Earlier this month, Ivey announced an emergency proclamation in hopes of helping give relief to Alabamians, while attracting business. The proclamation made changes to tax return forms so Alabama residents and businesses won’t have to pay state taxes on CARES Act benefits. That includes tax credits, advance refunds and loan forgiveness.
ALDOR officials say principal or interest payments incurred by an employer on behalf of the taxpayer on any qualified education loan that is excluded from the employee’s federal gross income should not be included in Alabama wages on W-2 forms for this tax year.
Qualifying disaster relief payments received by the taxpayer that would be excluded from federal income taxation should also not be included on W-2 forms.
The full guidance can be found on ALDOR’s website.