HB98 Summary

• Amends Alabama Code Section 40-18-15.7 to allow taxpayers filing the simplified short form to report up to $1,500 of interest and dividend income, replacing the current requirement of zero non-wage income.

• Maintains all other eligibility criteria for the optional increased standard deduction, including Alabama gross income under $100,000 and restrictions on dependents, itemized deductions, and certain tax credits.

• Preserves the enhanced standard deductions of $2,250 for single filers and $4,500 for married filing jointly under the simplified short form option.

• Effective for tax years beginning after December 31, 2020, following the Governor's approval or upon otherwise becoming law.

• Authorizes the Department of Revenue to promulgate rules for administering this provision.