Alabama residents and nonresidents who expect to owe state income tax for the 2025 tax year may be required to make estimated tax payments using Form 40ES. These payments are due in four installments on or before April 15, 2025, June 16, 2025, September 15, 2025, and January 15, 2026. If the 15th falls on a weekend or holiday, the payment is due on the next business day. Payments must be mailed separately from the annual tax return to the Alabama Department of Revenue, Individual Estimates, P.O. Box 327485, Montgomery, AL 36132-7485.
Reporting Estimated Tax Payments on Form 40
- On Form 40 (Alabama Individual Income Tax Return), enter any estimated tax payments made for 2025 on Line 23.
- Include payments made via Form 40ES or automatic extension (Form 40V).
Reporting Estimated Tax Payments on Form 40NR
- Nonresidents filing Form 40NR should report estimated tax payments for 2025 on Line 22.
- Include payments made via Form 40ES or automatic extension (Form 40V).
Penalties and Refunds
- Alabama law imposes penalties for underpayment or failure to pay estimated taxes when required.
Source:
Form 40 (Alabama Individual Income Tax Return)
Form 40ES Instructions (Estimated Tax)
Form 40NR (Alabama Nonresident Income Tax Return)
Disclaimer: Always verify details with the most current forms and instructions from the Alabama Department of Revenue. For complex situations, consult a CPA or tax professional.