HB320 Summary

• Changes the Alabama income tax filing requirement threshold from fixed dollar amounts ($1,875 for single filers; $3,750 for married filers) to equal the sum of the standard deduction and personal exemptions allowed for each filing status.

• Eliminates the current situation where standard deductions and personal exemptions exceed the filing thresholds, creating an inconsistency in tax law.

• Applies to all taxpayers regardless of filing status by tying requirements directly to deductible amounts rather than arbitrary dollar amounts.

• Becomes effective for tax years beginning after December 31, 2017.