W-4 Form Information – Alabama (AL)

It’s been said that “there are only two certainties in life: death and taxes”… and this is especially true if you have a job. Anyone earning a wage in the state of Alabama, regardless of where they actually live, must pay state income taxes, in addition to federal income taxes… which begs the question: how much should be withheld from each person’s income for state income taxes? The answer is simple: there is a form to help each employer determine that.

In addition to the federal income tax withholding form, W4, each employee needs to fill out an Alabama State income tax withholding form, A4. This form has essentially the same information on it, but makes sure you have the correct notations for looking up how much needs to be withheld from each paycheck – such as “S-1” for “Single, with 1 exemption”.

Please take note! If no income tax withholding form is filled out, taxes must be withheld at the highest level possible – single, no exemptions – even if the employee is known to be married. To prevent things like this from happening, I cannot stress the importance of having each employee file a state withholding form A4 as well as a federal Form W-4 enough, so please make their completion a priority.

In some cases, a federal W-4 form can be used in the place of an Alabama State A4 form, but it is recommended to have both on file.

Also, in the state of Alabama, there is an instance when the employee may be exempt from paying state-level income tax, and that is: if the employee is considered a “Full-time student” at their learning institution, is temporarily employed and expected to earn less than $1,800 during the taxable year – and thereby owing no state income tax.

The yearly W-4 Tax forms are currently available.