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Calculate the updated Federal Income Tax Deduction Worksheet

The Alabama Department of Revenue has updated the Federal Income Tax Deduction Worksheet. The updated worksheet complies with the provisions of Senate Bill 172:
"For the tax year ending on December 31, 2021, the federal income tax deduction allowed to individual taxpayers for federal income tax paid or accrued will be calculated without consideration of the reductions in federal tax attributable to any additional federal child tax credit, federal earned income tax credit, or federal child and dependent care tax credit received pursuant to Sections 9611, 9612, 9621, 9622, 9623, 9624, 9625, 9626, and 9631 of the American Rescue Plan Act of 2021 (ARPA). Instead, for any federal income tax reductions attributable to the federal child tax credit, the earned income tax credit, and the federal child and dependent care tax credits, the federal income tax deduction will be calculated as if the individual paid the federal income tax that would otherwise have been paid under the provisions of the Internal Revenue Code in effect on December 31, 2020."
UltraTax CS has implemented the main worksheet and some of the supporting calculations. More worksheets are being implemented to recalculate the rest of the necessary credits, and will be released on future updates of UltraTax CS.

Filing affected returns

Tax professionals can use this spreadsheet to recalculate the remaining credits instead. You can still file returns with credits that were recalculated using the spreadsheet, and the calculated credit amounts entered on the
ALAdj-2
 screen, despite the critical diagnostic.
note
This spreadsheet is meant for tax professional use only.

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