Updated October 19, 2026. Quick answer: Alabama Schedule RS is the Retirement Schedule attached to Form 40 or Form 40NR. Part 1 lists distributions exempt from Alabama income, Parts 2 and 3 list the primary’s and spouse’s taxable distributions and the exclusion, Part 4 totals the taxable amount for the return, and Part 5 totals Alabama tax withheld.
What this form does
The form is the “Retirement Schedule” and says “ATTACH TO FORM 40 OR FORM 40NR”. It also states: “Schedule RS must be completed fully and included with your return in order to receive proper credit for your” Alabama income tax withheld, and tells you to “Attach a copy of all withholding statements (Form 1099-R) to your return.” See Alabama retirement taxes for the state overview.
Who it applies to
The only age condition printed on the schedule is on the exclusion line in Part 2 and Part 3: “RETIREMENT EXCLUSION. Is the primary taxpayer 65 or older and receives taxable retirement?” In Part 3 the question is “Is the spouse 65 or older and receives taxable retirement?” The rule reads “If “No”, you do not qualify for this exclusion. Stop and go to line 11.”
Beyond that, the schedule prints no age, plan-type or residency condition on its other lines. It sorts your 1099-R payments into distributions listed under “Retirement Distribution(s) Exempt from Alabama Income” in Part 1 and taxable ones in Parts 2 and 3. For the state-level rules see whether Alabama taxes pensions and Alabama 401(k) and IRA withdrawals.
The lines, one by one
The text of the schedule drops its printed line numbers, so the lines below are identified by part and by the cross references the schedule itself prints (for example, “Part 5, line 1” and “Part 4, line 1”) and by the order of the rows.
| Line | What the form says |
|---|---|
| Heading | “Retirement Schedule” “ATTACH TO FORM 40 OR FORM 40NR” |
| Opening statement | “Schedule RS must be completed fully and included with your return in order to receive proper credit for your” Alabama income tax withheld. |
| Part I, lines 1 to 7 | “Retirement Distribution(s) Exempt from Alabama Income”, with columns for FEIN, IRA, distribution codes, account number, gross distribution, state code, state ID, Alabama withheld and “Reason Exempt” |
| Part I, line 8 | “ALABAMA TAX WITHHELD from Retirement Distribution(s) Exempt from Alabama Income. Total lines 1” to 7, Column H, entered here and on Part 5, line 1 |
| Part II, lines 1 to 7 | “Primary’s Fully or Partially Taxable Retirement Distributions”, same columns, with the last column headed “Taxable to Alabama” |
| Part II, line 8 | “ALABAMA TAX WITHHELD from Primary’s Fully or Partially Taxable Retirement Distributions.” |
| Part II, line 9 | “RETIREMENT INCOME TAXABLE TO ALABAMA.” |
| Part II, line 10 | “RETIREMENT EXCLUSION. Is the primary taxpayer 65 or older and receives taxable retirement?” “each taxpayer is eligible up to $6,000 not to exceed the Retirement Income Taxable to Alabama on line 9.” |
| Part II, line 11 | “Primary’s Alabama Taxable Retirement Distribution. Subtract line 10 from line 9.” |
| Part III, lines 1 to 11 | “Spouse’s Fully or Partially Taxable Retirement Distributions”, the same layout as Part II. Line 10 asks “Is the spouse 65 or older and receives taxable retirement?” |
| Part IV, line 3 | “Total Alabama Taxable Retirement Distribution. Add lines 1 and 2.” |
| Part V, line 4 | “Total Alabama Tax Withheld from a 1099-R. Add lines 1, 2, and 3.” |
The figures the form prints
One figure appears, inside a single line: “each taxpayer is eligible up to $6,000 not to exceed the Retirement Income Taxable to Alabama on line 9.” It appears on the exclusion line for the primary taxpayer and again for the spouse.
Where the result goes next
The totals go to the return: “Total Alabama Taxable Retirement Distribution. Add lines 1 and 2. Enter the amount here and on Form 40, Page 2, Part 1, Line 4 or Form 40NR, page 2, Part 1, Line 3, Column B”.
Withholding goes to the withholding schedule: “Add lines 1, 2, and 3. Enter the amount here and include in the amount on Schedule W-2, line 17”. The payments themselves come from Form 1099-R; see 1099-R boxes explained, Form 1040 line 5a and 5b and Form 1040 line 4a and 4b.
A worked example
The form prints the subtraction on line 11, so it can be recomputed. This is an illustration, not a state example, with invented amounts for a primary taxpayer who answers Yes to line 10.
Suppose line 9 is $9,000. Line 10 allows up to $6,000 and not more than line 9 so line 10 is $6,000. Line 11 is $9,000 minus $6,000 which is $3,000.
The amounts are invented for the computation; the form’s own line 10 wording governs your return.
Edition and line numbers
This page reads Alabama Schedule RS, Retirement Schedule for Form 40 and Form 40NR (2025) for tax year 2025, the current file Alabama Department of Revenue served on 2026-10-19. Check the edition printed on your own form and use that edition’s line numbers.
Common mistakes
- Leaving the schedule off the return. It says “Schedule RS must be completed fully and included with your return”
- Omitting the withholding statements. The schedule says “Attach a copy of all withholding statements (Form 1099-R) to your return.”
- Claiming the exclusion when the answer is No. The schedule says “If “No”, you do not qualify for this exclusion.”
Related: Alabama retirement taxes, whether Alabama taxes pensions, Alabama 401(k) and IRA withdrawals, Form 1040 line 5a and 5b, and 1099-R boxes explained.
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Answer againSources
- Alabama Schedule RS, Retirement Schedule for Form 40 and Form 40NR (2025), Alabama Department of Revenue: www.revenue.alabama.gov
- Related official page (not quoted): Line Instructions for Completing Schedule RS (2023 edition, background only), Alabama Department of Revenue: www.revenue.alabama.gov
Read from the state revenue documents linked above on October 19, 2026. General information, not tax advice. Your own facts decide the outcome, and a preparer or the state revenue department is the right place to confirm anything consequential.