On February 23, 2022, Act No. 2022-37 was signed into law, which allows individual taxpayers to calculate federal income tax deductions without consideration of certain tax credits under the American Rescue Plan Act, effective for the tax year ending on December 31, 2021.

If a user claimed any of these credits, their federal income tax deduction will be affected:

• Earned Income Tax Credit
• Child Tax Credit
• Additional Child Tax Credit
• Child and Dependent Care Expenses

Taxpayers who have already filed electronically will have their returns recomputed automatically and do not have to file an amended return. Taxpayers who filed paper returns or filed using My Alabama Taxes before the signage of the Act, however, will need to file an amended return to take advantage of these deductions.

For more information, please visit the Alabama Department of Revenue’s 2021 Federal Tax Deduction fact page: