Filing state taxes: Alabama begins processing returns today; what to know

The Alabama Department of Revenue will begin accepting and processing state tax returns today. And there are some things officials want you to know to make the process easier and to allow you to get your refund as quickly as possible.

The deadline for submitting your tax return is April 18.

What to know for tax season

Taxpayers are advised to file as soon as they receive their W-2s, 1099s and other documents. Not only can filing early help ADOR get refunds approved earlier, but it also enables taxpayers to get ahead of ID thieves.

For employers

The deadline for employers to file W-2 information with ADOR is Jan. 31. Late filers can face penalties.

Get a letter?

There are times when the Alabama Department of Revenue sends a letter asking for more information. People are advised to respond to their letter as soon as possible to make sure they receive their refund quicker. ADOR never contacts taxpayers initially by phone, text or email – only by letters sent through the mail.

Fraud detection

ADOR uses a variety of methods to validate identities and tax returns. This can include an identity confirmation letter that asks taxpayers to take a short online quiz or provide copies of documents to verify their identity. It can also include a return verification letter that asks a taxpayer to confirm online whether they or their representative filed the return ADOR received.

Accuracy checks

ADOR stops and reviews about 3-5% of individual tax returns each year to resolve mathematical errors or missing information. That can slow down your refund. If there is a question about your return, you may receive a request for information letter that asks for missing or additional information or a tax computation change letter that provides explanation of changes made to the tax return.

How long will it take to get my refund?

The date a return is filed and how the return is filed largely determines when the refund can be issued. For example, electronically filed returns are received and processed significantly faster than mailed returns. Also, if an error-free return is mailed in January or February, the taxpayer can expect to receive their refund sooner than if the return is filed in March or April. Generally, about 30% of income tax returns are filed between April 1 and April 30. Returns filed this close to the deadline may require as many as 90 days to process.

First-time filer

It will take additional time for new filers to be validated and entered into ADOR’s system. Until that time, the Refund Status website won’t recognize these taxpayers and will report their returns as “not entered in system.” It will take approximately 10-12 weeks to process a first-time filer’s return.