SB76 Summary

• Expands the adjusted gross income threshold for the maximum standard deduction for individual income taxpayers effective for tax years beginning after December 31, 2018, increasing the income limit from $20,000 to $23,000 for most filing statuses.

• Adjusts standard deduction amounts and phaseout rates for married filing jointly ($23,000 threshold), married filing separately ($10,500 threshold), head of family, and single taxpayers under the new income ranges.

• Exempts foreign earned income and housing allowance from Alabama income taxation to the extent such income is exempt from federal income tax under 26 U.S.C. Section 911, effective January 1, 2018.

• Modifies medical and dental expense deductions to allow a 4.0 percent adjusted gross income threshold instead of 7.5 percent for individual income taxpayers.

• Becomes effective immediately upon passage and approval by the Governor.