Online tax preparation for Alabama
Tax Preparation Services in Alabama
We prepare your federal and Alabama returns together, for individuals, freelancers, LLCs and corporations. You see the scope and fee before any work starts, and nothing is filed until you approve it.
Rated 4.6 out of 5 in client reviews, with 1,000+ returns filed. Consultations with a US CPA start at $59.
What do you need help with?
Five services cover most people and businesses filing in Alabama. Each one starts with a quote, so you know the fee before work begins.
Accounts outside the US? See FBAR, FATCA and PFICIndividual tax returns
Employees, retirees and households
Your federal Form 1040 and your Alabama Form 40, 40A or 40NR, prepared and reviewed together.Get an individual quote
Self-employed and freelance
1099 contractors and sole proprietors
Schedules C and SE, business income on your Alabama return, and estimated payments planned for the year ahead.Get a self-employed quoteEstimate your self-employment tax first
Business tax returns
LLCs, partnerships, S corporations and C corporations
Federal entity returns and K-1s, Alabama Forms 65, 20S or 20C, and the business privilege tax.Explore business tax filing
Tax planning and consultation
A decision, a move or an entity choice
A 30-minute session with a US CPA on your question, from $59. Useful before you form an entity, move states or change how you're paid.Book a consultation
Bookkeeping and accounting
Businesses that want filing-ready books
Monthly categorization, reconciliations, catch-up months and financial reports, so year-end filing starts from clean numbers.Explore bookkeeping
Which returns will you file?
Pick the closest fit to see your federal return, your Alabama return, and the other Alabama filing that usually comes with it.
Federal return, IRS
Form 1040
Your annual federal return, with wages, retirement income and investments.
Alabama return, ADOR
Form 40, 40A or 40NR
Form 40 for residents and part-year residents, or the shorter 40A if you qualify. Form 40NR for nonresidents with Alabama-source income.
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April 15 payment
The filing extension to October 15 is automatic, but tax is still due by the original date.
Federal return, IRS
Form 1040 with Schedules C and SE
Business profit and self-employment tax on your personal return.
Alabama return, ADOR
Form 40 or 40NR
Business income goes on your individual Alabama return. A sole proprietorship has no separate Alabama entity return.
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Estimated payments
With no employer withholding, plan quarterly federal estimated payments around your income.
Federal return, IRS
Owner's Form 1040
Disregarded by default, unless the LLC elects to be taxed as a corporation.
Alabama return, ADOR
Owner's Form 40
ADOR treats a single-member LLC as disregarded, so it files no separate Form 65. Its income goes on the owner's return.
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Business privilege tax
Disregarded entities file Form PPT when the privilege tax due is more than $100.
Federal return, IRS
Form 1065 or 1120-S
An entity return, with a K-1 for each owner.
Alabama return, ADOR
Form 65 or 20S
Due the 15th day of the third month after year-end. Partnerships with any nonresident member also file a composite return.
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Form PPT, and the EPT option
Privilege tax when it's over $100. Both entity types can elect to pay Alabama tax at the entity level on Form EPT.
Federal return, IRS
Form 1120
The corporate income tax return.
Alabama return, ADOR
Form 20C
Taxed at 6.5%. The return is due one month after the federal return, but the tax is due by the original date.
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Form CPT and annual report
Privilege tax on Form CPT when it's over $100, plus a $10 annual report filed with the Secretary of State.
These are typical paths, not a filing determination. Elections, ownership, residency and where you earn income can change what you file; your consultation confirms it.
Filing in Alabama: what's different
The rules that most often change an Alabama return, checked against Alabama Department of Revenue (ADOR) guidance on 27 October 2026.
Three income tax rates with low thresholds
Alabama taxes individual income at 2%, 4% and 5%. Every dollar of taxable income above $3,000, or $6,000 for joint filers, is taxed at 5%.
- First $500Joint: first $1,000
- Next $2,500Joint: next $5,000
- Over $3,000Joint: over $6,000
The first thresholds apply to single, head of family and married filing separately returns.
Which Alabama return?
- Form 40
- Full-year and part-year residents.
- Form 40A
- A shorter form for full-year residents who meet all of its conditions.
- Form 40NR
- Nonresidents with Alabama-source income above the prorated personal exemption.
Moved in or out during the year and earned Alabama income while a nonresident? You may file both Form 40 and Form 40NR.
Key dates for calendar-year filers
Mar 15
Partnerships and S corporations file Form 65 or Form 20S, Form PPT for privilege tax, and Form EPT if they elect to pay tax at the entity level.
Apr 15
Individuals file Form 40 or 40NR. C corporations pay their Alabama income tax and file Form CPT.
May 15
C corporations file Form 20C, one month after the federal return.
Oct 15
Extended individual returns are due. The extension is automatic; no form is needed.
A date that falls on a weekend or state holiday moves to the next business day. Business returns follow the federal extension for filing only; tax is due by the original date.
Linked to your federal return
Form 40 includes a deduction for federal income tax (line 12), so your Alabama figures depend on your federal ones. Part-year residents prorate it.
Business privilege tax
Corporations, LLCs and disregarded entities doing business in Alabama owe it for every year they're registered. For tax years beginning after 2023, no return is needed when the tax due is $100 or less.
Sales tax
The state rate is 4%, and cities and counties add their own. If you sell taxable goods, we confirm your state and local registrations during scoping.
Official sourcesADOR individual filing informationADOR business privilege taxADOR corporate due datesADOR S corporation due dateADOR electing pass-through entitiesADOR sales and use tax rates
Accounts or assets outside the US?
US taxpayers with foreign bank accounts, investments or non-US funds can have three separate reporting duties: the FBAR, Form 8938 and Form 8621 for PFICs. Each has its own rules, and filing one doesn't satisfy another.
| FBARFinCEN Form 114 | Form 8938FATCA reporting | PFICForm 8621 | |
|---|---|---|---|
| Filed with | FinCEN, electronically through the BSA E-Filing System. Not part of your tax return. | The IRS, attached to your income tax return. | The IRS, attached to your income tax return, with a separate form for each PFIC. |
| Who it covers | US persons, including citizens, resident aliens and domestic entities, with foreign financial accounts. | Specified individuals and certain domestic entities with specified foreign financial assets. | US persons who hold shares, directly or indirectly, in a passive foreign investment company. |
| Threshold if you live in the US | Accounts total more than $10,000 at any time in the year. | Single: over $50,000 at year-end or $75,000 at any time. Joint: over $100,000 or $150,000. | No general minimum. A $25,000 exception ($50,000 joint) can apply when there were no distributions, gains or elections to report. |
| Due | April 15, with an automatic extension to October 15. | With your tax return, including extensions. | With your tax return, including extensions. |
A PFIC is a foreign corporation with at least 75% passive income or at least 50% passive assets. Many mutual funds and ETFs registered outside the US, including Indian mutual funds, can qualify, so we check each holding. Form 8938 thresholds are higher if you live abroad. Sources: IRS comparison of Form 8938 and FBAR requirements, IRS instructions for Form 8621.
How it works
Four steps, all online. You can stop after the second one if the fee doesn't suit you.
Tell us what you need
Pick a service, or describe your situation and we'll point you to the right one.
No documents needed yet
Confirm scope and fee
A short call maps your federal and Alabama returns, entities and any other states.
Fee agreed up front
Share documents securely
Upload W-2s, 1099s, statements and prior returns to your encrypted workspace instead of email.
Access limited to your team
Review, sign and file
Your expert prepares and reviews the returns and walks you through them.
Nothing is filed until you sign
One team for your federal and Alabama returns, fully online, with the fee agreed before any work starts.
- Client rating
- 4.6/5
- Returns filed
- 1K+
- CA and CPA experts
- 30+
- Serving clients since
- 2019
Savetaxs internal records, Jan 2023 to Sep 2026. Ratings from client reviews.
Hatim Dudhiyawala
US Certified Public Accountant
- IRS PTIN
- P03362186
- Experience
- 5+ years
- Practice
- US tax filing, compliance and planning
- Encrypted documents. Access is limited to your assigned expert and authorized team.
- Clear scope. You see the recommended service and fee before you proceed.
- Online by design. Video or phone consultations, flexible across time zones.
Know the fee before you commit
A consultation has a fixed price. Filing and bookkeeping are quoted for your situation, because a single W-2 return and a multi-owner S corp are different jobs.
Tax consultation with a US CPA
from $59one-time, 30 min
For a specific question, a move, an entity decision or a second opinion. Book a consultation
Tax preparation and filing
Quotedper return
Depends on your forms and schedules, the states you file in, your entity type and the condition of your records.
Bookkeeping and accounting
Quotedmonthly
Based on transaction volume, number of accounts and any catch-up months.
Consultation fees are separate from filing and bookkeeping fees.
Request a filing quote
A few details. No documents or tax IDs.
Request received
- A tax expert reviews your request and the service you picked.
- We email you at to confirm scope and ask anything we need.
- You receive a quote before any work starts.
Nothing is charged until you accept a quote.
Questions about filing in Alabama
Something specific to your situation? Ask a US CPA in a 30-minute consultation.
Can Savetaxs prepare both my federal and Alabama returns?
Yes. We prepare federal returns for individuals and businesses together with the matching Alabama returns: Form 40, 40A or 40NR for individuals, and Forms 65, 20S or 20C, plus business privilege tax returns, for businesses. Your consultation confirms which returns apply to you.
The work is done online, by video or phone, with documents shared through an encrypted upload.
Do I need to request an extension for my Alabama individual return?
No. The Alabama Department of Revenue grants an automatic extension to October 15, with no form to file. It extends the time to file, not to pay, so tax due should be paid by the original due date to avoid interest and late-payment penalties.
I moved to or from Alabama this year. Which form do I file?
Part-year residents file Form 40. If you also had Alabama-source income while you were a nonresident, you file Form 40NR as well. Other states may need their own returns, and we map each one during scoping.
Does my single-member LLC file its own Alabama income tax return?
No. The Alabama Department of Revenue treats a single-member LLC as a disregarded entity, so it does not file a separate Form 65. The LLC can still owe business privilege tax, and files Form PPT when the tax due is more than $100.
Does my business still have to file a business privilege tax return?
For taxable years beginning after December 31, 2023, a business whose privilege tax due is $100 or less is fully exempt and does not file a return. Above that, C corporations file Form CPT and pass-through entities file Form PPT.
Corporations now file their annual report separately with the Alabama Secretary of State.
How is pricing determined?
A consultation with a US CPA starts at $59. Filing is priced per return, based on forms and schedules, the number of states, your entity type and the condition of your records. Bookkeeping is priced on monthly volume. You see the fee before you proceed.
I have bank accounts or mutual funds outside the US. What do I need to file?
Possibly one or more of three forms. The FBAR (FinCEN Form 114) applies when your foreign financial accounts total more than $10,000 at any time in the year, and it is filed with FinCEN, not with your tax return. Form 8938 has higher thresholds and is attached to your income tax return. Filing one does not replace the other.
If you own shares in a non-US mutual fund or other passive foreign investment company (PFIC), Form 8621 may also be required for each fund. See our foreign asset reporting service.
Start with a 30‑minute consultation.
Talk through your federal and Alabama filings with a US CPA, get a clear scope and fee, then decide.
Savetaxs is a part of Hornet Dynamics Private Limited. Services are delivered online. Savetaxs is a private firm and is not affiliated with the IRS, FinCEN, the Alabama Department of Revenue, the Alabama Secretary of State or any government agency.
Information on this page is general and is not tax advice for your situation. © 2026 Savetaxs.com