ALABAMA TAX PRACTITIONER EXAM
200 NEW EXAM QUESTIONS & VERIFIED ANSWERS
WITH RATIONALES (2027 EDITION)
1. A taxpayer moved from Alabama to Georgia on July 1. For Alabama
purposes, how should this taxpayer file?
A. As a full-year resident using Form 40.
B. As a part-year resident using Form 40.
C. As a nonresident using Form 40NR.
D. As a full-year nonresident using Form 40NR.
Correct Answer: B
Rationale: A taxpayer who is a resident for part of the year and a
nonresident for the other part, having taxable income in both periods,
must file a part-year resident return using Form 40 to report income
earned during the Alabama residency period.
2. Which Alabama form is filed by a nonresident individual who
receives Alabama-source income?
A. Form 40
B. Form 40A
C. Form 40NR
D. Form 20C
Correct Answer: C
,Rationale: Nonresident individuals receiving taxable income from
property owned or business transacted within Alabama must file Form
40NR, the Nonresident Individual Income Tax Return.
3. An individual who is not domiciled in Alabama but maintains a
permanent place of abode in the state and spends more than how
many months of the taxable year in Alabama is presumed to be a
resident?
A. Five months
B. Six months
C. Seven months
D. Nine months
Correct Answer: C
Rationale: Under Alabama Administrative Code Rule 810-3-2-.01(2),
individuals not domiciled in Alabama who maintain a permanent place
of abode or spend more than seven months of the taxable year in
Alabama are presumed to be residents.
4. What is the standard deduction for a single Alabama taxpayer with
adjusted gross income of $18,000 for the 2026 tax year?
A. $2,000
B. $2,500
C. $3,000
D. $3,500
Correct Answer: B
,Rationale: For single filers with AGI of $20,000 or less, the minimum
standard deduction is $2,500 for the 2026 tax year.
5. What is the maximum standard deduction for a married couple
filing jointly in Alabama for the 2026 tax year?
A. $5,000
B. $7,500
C. $8,500
D. $9,500
Correct Answer: C
Rationale: For married filing jointly taxpayers with AGI of $23,499 or
less, the maximum standard deduction is $8,500 for the 2026 tax year.
6. What is the Alabama personal exemption amount for a single
taxpayer?
A. $1,000
B. $1,500
C. $2,000
D. $3,000
Correct Answer: B
Rationale: A single person, or a married person not filing with their
spouse, is entitled to a personal exemption of $1,500.
, 7. What is the Alabama personal exemption amount for a married
couple filing jointly?
A. $1,500
B. $2,000
C. $3,000
D. $4,500
Correct Answer: C
Rationale: A head of family or a married couple filing a joint return is
entitled to a personal exemption of $3,000.
8. What is the Alabama dependent exemption amount for a taxpayer
with gross income of $50,000 or less?
A. $300
B. $500
C. $1,000
D. $1,500
Correct Answer: C
Rationale: For taxpayers with gross income of $50,000 or less, the
dependent exemption is $1,000 per dependent.
9. What is the Alabama dependent exemption amount for a taxpayer
with gross income exceeding $100,000?
A. $300
B. $500
200 NEW EXAM QUESTIONS & VERIFIED ANSWERS
WITH RATIONALES (2027 EDITION)
1. A taxpayer moved from Alabama to Georgia on July 1. For Alabama
purposes, how should this taxpayer file?
A. As a full-year resident using Form 40.
B. As a part-year resident using Form 40.
C. As a nonresident using Form 40NR.
D. As a full-year nonresident using Form 40NR.
Correct Answer: B
Rationale: A taxpayer who is a resident for part of the year and a
nonresident for the other part, having taxable income in both periods,
must file a part-year resident return using Form 40 to report income
earned during the Alabama residency period.
2. Which Alabama form is filed by a nonresident individual who
receives Alabama-source income?
A. Form 40
B. Form 40A
C. Form 40NR
D. Form 20C
Correct Answer: C
,Rationale: Nonresident individuals receiving taxable income from
property owned or business transacted within Alabama must file Form
40NR, the Nonresident Individual Income Tax Return.
3. An individual who is not domiciled in Alabama but maintains a
permanent place of abode in the state and spends more than how
many months of the taxable year in Alabama is presumed to be a
resident?
A. Five months
B. Six months
C. Seven months
D. Nine months
Correct Answer: C
Rationale: Under Alabama Administrative Code Rule 810-3-2-.01(2),
individuals not domiciled in Alabama who maintain a permanent place
of abode or spend more than seven months of the taxable year in
Alabama are presumed to be residents.
4. What is the standard deduction for a single Alabama taxpayer with
adjusted gross income of $18,000 for the 2026 tax year?
A. $2,000
B. $2,500
C. $3,000
D. $3,500
Correct Answer: B
,Rationale: For single filers with AGI of $20,000 or less, the minimum
standard deduction is $2,500 for the 2026 tax year.
5. What is the maximum standard deduction for a married couple
filing jointly in Alabama for the 2026 tax year?
A. $5,000
B. $7,500
C. $8,500
D. $9,500
Correct Answer: C
Rationale: For married filing jointly taxpayers with AGI of $23,499 or
less, the maximum standard deduction is $8,500 for the 2026 tax year.
6. What is the Alabama personal exemption amount for a single
taxpayer?
A. $1,000
B. $1,500
C. $2,000
D. $3,000
Correct Answer: B
Rationale: A single person, or a married person not filing with their
spouse, is entitled to a personal exemption of $1,500.
, 7. What is the Alabama personal exemption amount for a married
couple filing jointly?
A. $1,500
B. $2,000
C. $3,000
D. $4,500
Correct Answer: C
Rationale: A head of family or a married couple filing a joint return is
entitled to a personal exemption of $3,000.
8. What is the Alabama dependent exemption amount for a taxpayer
with gross income of $50,000 or less?
A. $300
B. $500
C. $1,000
D. $1,500
Correct Answer: C
Rationale: For taxpayers with gross income of $50,000 or less, the
dependent exemption is $1,000 per dependent.
9. What is the Alabama dependent exemption amount for a taxpayer
with gross income exceeding $100,000?
A. $300
B. $500
