Under current law, the state levies an income tax upon all residents of the state and upon all nonresidents who receive income from Alabama sources. Taxpayers are allowed an optional standard deduction, as well as dependent exemptions in computing income subject to the tax. This bill would increase the optional standard deduction and expand the adjusted gross income range allowable for the maximum optional standard deduction and the dependent exemption to increase the threshold at which the state imposes individual income taxes.

Statutes affected:
Introduced: 40-18-15, 40-18-19