Alabama Schedule DS – Dependents Schedule
Last reviewed: 2025-11-12
Use the Alabama Tax Form Calculator Form AL-40-Schedule-DS: Alabama Schedule DS – Dependents Schedule as a stand alone tax form calculator to quickly calculate specific amounts for your 2026 Alabama state tax return. Alternatively, you can use one of our Combined Federal and State Tax Estimators to quickly calculate your salary, tax, and take-home pay.
Alabama Schedule DS is the form used to declare dependents on your Alabama Individual Income Tax Return (Form 40) or Form 40NR. Each dependent must be listed individually with their full name, Social Security Number, and relationship to you. This schedule ensures proper calculation of the Alabama dependent exemption amount and verification of eligibility under state law.
Dependents must generally meet the same relationship, support, and residency tests that apply for federal tax purposes, but Alabama does not follow all federal definitions for qualifying relatives — always review current state instructions for differences.
How to Complete Alabama Schedule DS
- List Dependents: Provide the full name, SSN, and relationship of each dependent. Use additional sheets if necessary.
- Residency Test: Confirm whether each dependent lived with you in your home for over half of the year by marking Yes or No.
- Support Test: State whether you provided more than half of each dependent’s financial support during the tax year.
- Total Dependents: Enter the number of dependents claimed. This number transfers to your Form 40, line 10 or Form 40NR, line 11.
- Attach Documentation: Keep birth certificates, custody records, or proof of support in case the Alabama Department of Revenue requests verification.
| Dependents — Do not include yourself or spouse | ||
| 1a | List each dependent’s full name, SSN, relationship | |
| 1b | Total number of dependents claimed above | |
| Additional Information | ||
| 2a | Did the dependent reside with you in your home? (Yes / No) | |
| 2b | Did you provide more than one-half of the dependent’s support? (Yes / No) | |
Example Scenarios
Example 1 – Married Couple with Two Children: A taxpayer lists two qualifying children who lived in their home for the entire year. Both are under 19. Schedule DS lists each dependent, providing SSNs and relationships. Total dependents = 2, which flows to Form 40 line 10.
Example 2 – Dependent Parent: A taxpayer supports a retired parent who does not live with them but relies on the taxpayer for over half their expenses. The parent qualifies as a dependent, provided income and support tests are met under Alabama rules.
Example 3 – Shared Custody: If both parents share custody, only the parent who claims the child on the federal return may also claim the child for Alabama purposes, unless a written agreement or court order specifies otherwise.
Last reviewed: 2025-11-12: If you believe this form requires an update, please contact us.
Further Guidance and Resources
- Form AL-40 – Alabama Individual Income Tax Return
- Form AL-40NR – Alabama Nonresident/Part-Year Return
- Form AL-40A – Alabama Short Form
- Alabama Department of Revenue – Individual Income Tax Division
Alabama Schedule DS is essential for verifying dependent eligibility and calculating exemptions accurately. Always ensure your dependent data matches your federal return to prevent processing delays or rejection of state deductions.
Quick Access Tools
Frequently Asked Questions
What is Alabama Schedule KRCC-I used for?
Schedule KRCC-I is required for taxpayers who receive a share of the Alabama Capital Credit from qualifying industrial or commercial projects. This credit, established to encourage economic development, allows project investors or pass-through entity members to apply a portion of the approved credit to their Alabama individual income tax. Schedule KRCC-I documents the project name, certificate number, annual credit share, carryforward amounts and the portion being applied to the current year’s income tax liability. The form ensures that taxpayers do not exceed their allowable credit and provides Alabama with an audit trail linking each credit claim to the certified project under the Alabama Capital Credit Act.
What documentation should taxpayers keep to support KRCC-I claims?
Taxpayers must retain the original Alabama Capital Credit certificate, pass-through K-1 statements showing their credit allocation, project approval letters from the Alabama Department of Commerce, prior-year KRCC-I schedules reflecting carryforward balances and the certified project number. Supporting documentation must demonstrate the taxpayer’s ownership interest for each period in which the credit is claimed. While Alabama does not require filing all documents with the return, the Department of Revenue can request them at any time, and incomplete documentation may result in a denied or reduced credit. These records should be retained for the full credit duration, as claims may span up to 20 years.
How are bonuses withheld in Alabama?
Employers may use supplemental methods; totals reconcile on your annual return. Model as supplemental in the calculator.
Any millionaire or surcharge thresholds?
If applicable, they’re reflected in the Alabama bracket table and notes.
What happens if I start making payments late in the year?
If you begin making estimated payments after the first quarter, Alabama allows you to adjust the remaining payments. For example, if you start after April 1, divide the annual amount by three instead of four. The latest possible estimated payment date is January 15 of the following year for income earned in the current year.
Important Notes
All calculations are estimates for guidance only. Always review your return and consider professional advice when submitting official filings.