Alabama CPA PAC 2022LEGISLATORS’ TAX GUIDE

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Your contribution to the PAC benefits the future of the profession:

• It ensures that your profession’s best interest are represented

• It supports state legislators and candidates who support CPAs and business interests

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To make a contribution visit alabama.cpa/legislative-advocacy.

The Legislators’ Tax Guide is provided on a complimentary basis by the ASCPA to help answer our Alabama Legislators tax questions and those of you who assist legislators with their tax preparation.

The purpose of this tax guide is to examine federal and Alabama tax aspects of payments received from the state by Alabama legislators. Conclusions reached for federal taxation purposes usually will apply for State of Alabama taxes on income. By virtue of the provisions of Sec. 29-1-8.1, Code of Alabama 1975, the State Department of Revenue must accept and follow the travel expense provisions of the U.S. Internal Revenue Code as amended by the Economic Recovery Tax Act of 1981 for state legislators.

This guide is intended to deal only with the tax consequences under federal and Alabama tax laws of legislators’ per diem, expense, and mileage receipts as elected officials, and does not cover any personal tax matters (such as capital gains or losses, rental income and expenses, salary from private employment, or business income and expenses).

A copy of the latest edition of the 2022 Legislators’ Tax Guide can be found online by visiting alabama.cpa/tax-guide.