Alabama Tax Tribunal Finds Non-Resident Taxpayer’s Wages Subject to Individual Income Tax

The Alabama Tax Tribunal May 19 found non-resident Taxpayer’s wages subject to individual income tax. Taxpayer, a domiciliary of Florida, was the director for a company which was located and operated only in Alabama. The company reported Taxpayer’s wages as Alabama-sourced wages on his Form W-2. Taxpayer appealed, contending that since he worked partly from home in Florida and traveled for meetings approximately two weeks out of each month, his income wasn’t Alabama-sourced and he wasn’t subject to Alabama taxes. The tax tribunal noted that: 1) a nonresident individual receiving income from property owned or business transacted in Alabama is ...