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Alabama: The Importance of an Expert CPA for Small Business Tax Preparation in the state

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Why online CPAs in Alabama work

Getting your taxes done with a certified public accountant (CPA) means physically traveling to a CPA's office for a face-to-face meeting. As the client, you had to bring all of the necessary paperwork the CPA would need to prepare your taxes, including receipts, bank statements, spreadsheets and all the random stuff you never think of until the last minute. Only after some hours (if you were lucky) going through all your information together and paying the substantial bill for her services would she file your taxes with the IRS. At least, that's how it used to work. Today, you can have essentially the same meeting with a CPA the same way you can do your banking, play a board game or order dinner: online. What you might not know is that it's no longer the case that you have to gather all your paperwork, because like so many things in life these days, there's an app for that – in this case, a very powerful app that uses A.I. to track your business expenses and your tax deductions automatically. FlyFin is always running in the background and prompting you to mark write-offs, so you don't miss a single opportunity for tax savings. At the end of the year, you've got digital records of everything you need to file your taxes in a fraction of the time it used to take and with savings maximized by A.I. and online CPAs. FlyFin's experts are available 24/7 with tax guidance and advice you would normally need to make a potentially expensive appointment with an Alabama CPA to get. They bring to the tax table more than 100 combined years of deep knowledge about the tax system in Alabama, as well as experience with taxes for self-employed individuals, from nurses, consultants, delivery drivers and designers to business structures like LLCs, S-Corporations, sole proprietorships, and partnerships.

Facts and figures about
taxes in Alabama

9,865

CPAs across the state

alabama
population

5,024,279

Residents as of 2022

population

260,160

People claiming self- employment tax deductions

population

97,620

S-Corps statewide

population

162,510

People taking itemized deductions

population

241,370

People claiming the QBI deduction

😵‍💫 Alabama CPAs cost a lot when there's only one for every 516 residents.

😓 19 million taxpayers were late filing taxes last year.

😨 Without a trained tax professional, 30 million Americans miss tax-saving deductions.

😣 Nearly half of Americans end up paying more tax than they have to.

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How to set up an LLC in Alabama

Infographic entitled How to set up an LLC in Alabama describing the process in seven steps.
Infographic entitled How to set up an LLC in Alabama describing the process in seven steps.
Infographic entitled How to set up an LLC in Alabama describing the process in seven steps.
Infographic entitled How to set up an LLC in Alabama describing the process in seven steps.
Infographic entitled How to set up an LLC in Alabama describing the process in seven steps.
Infographic entitled How to set up an LLC in Alabama describing the process in seven steps.
Infographic entitled How to set up an LLC in Alabama describing the process in seven steps.

Alabama State Income Tax Rates & Brackets for 2023

The following tables represents Alabama's income tax rates and tax brackets:

SINGLE FILER

Brackets

Rates

$0 - $500

2.00%

$500 - $3,000

4.00%

$3,000+

5.00%

MARRIED FILING JOINTLY

Brackets

Rates

$0 - $1,000

2.00%

$1,000 - $6,000

4.00%

$6,000+

5.00%

Filing Status

Standard Deduction Amt.

Single

$2,500

Couple

$5,000

Alabama State Sales Tax Rates for 2023

County

Tax Rate

Autauga County

10%

Baldwin County

11%

Barbour County

9.50%

Bibb County

10%

Blount County

12%

Bullock County

10%

Butler County

10%

Calhoun County

10%

Chambers County

10.50%

Cherokee County

10%

Chilton County

11%

Choctaw County

10%

Clarke County

10%

Clay County

9%

Cleburne County

9%

Coffee County

10%

Colbert County

10%

Conecuh County

10%

Coosa County

10%

Covington County

10%

Crenshaw County

10%

Cullman County

10%

Dale County

10%

Dallas County

10%

Dekalb County

11.50%

Elmore County

10%

Escambia County

11%

Etowah County

12%

Fayette County

9.50%

Franklin County

10%

Geneva County

9.50%

Greene County

10%

Hale County

10%

Henry County

10%

Houston County

10%

Jackson County

9%

Jefferson County

10%

Lamar County

9.50%

Lauderdale County

9.50%

Lawrence County

10%

Lee County

10%

Limestone County

10.50%

Lowndes County

10.50%

Macon County

11.50%

Madison County

10.50%

Marengo County

10%

Marion County

11%

Marshall County

12.50%

Mobile County

10%

Monroe County

10%

Montgomery County

10%

Morgan County

9%

Perry County

10%

Pickens County

10%

Pike County

10%

Randolph County

10%

Russell County

9.88%

Shelby County

12%

St Clair County

10%

Sumter County

11%

Talladega County

10%

Tallapoosa County

10%

Tuscaloosa County

10%

Walker County

10%

Washington County

10%

Wilcox County

11%

Winston County

10%

Alabama State IRS Statistics of Income for 2020

Size of adjusted gross income

Item
(All amounts are in 1000s of dollars)

Number of returns

Number of single returns

Number of joint returns

Number of head of household returns

Number of individuals

Adjusted gross income (AGI)

Total income: Number

Amount

Salaries and wages in AGI: Number

Amount

Business or profession net income (less loss): Number

Amount

Partnership/S-corp net income (less loss): Number

Amount

Self-employed health insurance deduction: Number

Amount

Student loan interest deduction: Number

Amount

Charitable contributions if took standard deduction: Number

Amount

Total itemized deductions: Number

Amount

State and local income taxes: Number

Amount

State and local general sales taxes: Number

Amount

Qualified business income deduction: Number

Amount

Child and dependent care credit: Number

Amount

Child and other dependent tax credit: Number

Amount

Self-employment tax: Number

Amount

Earned income credit: Number

Amount

Refundable education credit: Number

Amount

Recovery rebate credit: Number

Amount

Total tax liability: Number

Amount

Total additional Medicare tax: Number

Amount

Net investment income tax: Number

Amount

Tax due at time of filing: Number

Amount

Total overpayments: Number

Amount

All returns

2,246,870

1,046,310

763,750

384,320

4,236,530

136,898,878

2,187,260

138,402,925

1,788,610

94,539,127

383,210

3,386,805

97,620

8,053,395

39,100

313,918

111,850

87,229

685,320

185,166

162,510

6,210,460

125,540

1,239,429

25,220

48,018

241,370

1,869,714

82,350

44,607

575,920

1,116,262

260,160

750,542

475,900

1,245,775

112,510

100,447

439,290

638,901

1,521,120

16,101,149

37,120

65,019

44,510

191,107

410,720

2,238,394

1,760,200

6,023,613

Under $1

84,760

63,770

14,270

4,600

112,350

0

25,250

0

7,300

277,929

13,290

0

5,240

0

1,470

9,798

890

965

12,740

3,381

0

0

0

0

0

0

0

0

0

0

70

50

3,270

8,465

4,890

8,497

1,780

1,639

49,630

74,363

4,450

10,717

190

275

0

0

2,310

5,051

62,160

152,658

$1 under $10,000

294,220

232,520

25,560

31,460

328,160

1,458,820

294,110

1,510,064

204,190

1,114,396

49,350

126,687

2,770

0

2,270

8,095

2,600

2,152

40,610

10,288

2,530

49,839

810

1,628

1,140

917

600

148

20

8

280

126

38,540

27,625

100,240

139,704

13,040

11,327

86,020

133,861

46,580

30,281

10

7

0

0

20,150

9,550

235,650

381,825

$10,000 under $25,000

490,940

287,470

60,390

133,780

818,810

8,536,257

490,940

8,668,662

388,300

6,227,767

93,590

486,661

5,260

0

4,140

14,613

9,070

6,865

98,480

26,278

6,740

153,154

2,460

4,508

3,010

3,147

25,360

15,973

5,430

1,692

65,270

23,470

68,750

112,770

209,270

719,756

30,450

27,214

109,180

167,923

259,300

232,922

50

58

0

0

38,280

37,585

439,450

1,446,395

$25,000 under $50,000

554,350

270,310

120,880

145,190

1,018,610

19,926,249

554,350

20,125,143

478,240

15,976,249

76,050

300,222

9,340

27,939

5,630

26,609

28,350

21,339

165,670

44,405

18,990

457,524

9,770

20,591

5,810

8,364

47,420

69,918

23,020

13,508

190,250

231,625

43,390

103,901

156,390

374,985

26,890

24,016

80,190

112,415

415,380

910,869

80

526

10

1

81,450

112,888

470,350

1,445,439

$50,000 under $75,000

290,340

112,250

124,390

43,340

587,230

17,805,549

290,340

17,975,584

247,640

13,682,144

44,020

298,345

9,770

72,572

4,280

26,714

25,370

20,168

116,710

31,583

22,080

542,161

15,310

44,884

4,870

8,290

36,120

83,071

13,290

7,037

99,800

231,149

27,780

78,896

5,120

2,833

12,670

11,372

39,680

52,033

268,040

1,243,621

60

114

0

0

69,470

142,135

220,340

625,849

$75,000 under $100,000

181,260

41,500

121,140

14,790

426,800

15,707,705

181,260

15,844,799

154,500

11,616,928

31,520

280,169

9,660

109,392

3,480

24,721

17,230

12,823

85,580

23,422

19,470

525,717

14,690

56,021

3,440

6,998

30,100

86,410

11,810

6,459

70,040

196,430

21,280

67,335

0

0

9,020

7,957

27,800

31,556

177,450

1,300,300

70

58

0

0

50,170

135,751

130,800

438,020

$100,000 under $200,000

267,650

31,590

222,880

9,720

710,320

36,143,472

267,650

36,474,114

234,990

26,759,649

52,610

769,434

25,670

617,882

7,690

68,559

28,340

22,917

136,020

37,561

50,120

1,618,550

42,520

258,140

5,090

13,601

61,600

283,576

23,070

12,824

119,970

346,286

36,600

157,033

0

0

18,670

16,922

46,080

66,401

266,580

4,045,935

2,110

682

860

253

102,650

444,394

164,570

705,257

$200,000 under $500,000

68,790

5,550

61,460

1,190

192,420

19,302,651

68,790

19,571,754

60,990

12,501,380

17,880

855,393

19,750

1,655,136

6,390

79,751

0

0

26,430

7,378

31,930

1,352,714

29,830

355,005

1,480

5,012

30,440

401,174

5,090

2,710

30,150

86,998

15,250

121,734

0

0

0

0

710

349

68,750

3,259,653

25,100

18,127

30,910

31,856

38,150

488,756

30,460

316,064

$500,000 under $1,000,000

9,830

880

8,670

170

28,520

6,634,103

9,830

6,745,445

8,460

3,295,679

3,300

308,825

6,290

1,565,620

2,330

33,981

0

0

2,360

663

6,830

487,963

6,510

176,727

250

1,213

6,070

201,348

510

288

100

128

3,480

40,554

0

0

0

0

0

0

9,820

1,558,168

6,450

19,303

8,430

36,103

5,630

293,502

4,170

156,768

$1,000,000 or more

4,750

480

4,130

80

13,310

13,564,772

4,750

13,634,395

4,020

3,087,006

1,590

224,477

3,890

4,759,356

1,420

21,077

0

0

740

207

3,820

1,022,838

3,640

321,925

150

476

3,660

728,096

120

81

0

0

1,820

32,229

0

0

0

0

0

0

4,750

3,508,683

3,000

25,869

4,290

122,894

2,470

568,782

2,260

355,338

Frequently Asked Questions

How does online tax filing in Alabama work?

What exactly is a CPA in Alabama?

What does a Certified Public Accountant in Alabama do?

How do FlyFin Smart CPAs do?

Ask a CPA in other states

Ask a CPA in Counties of Alabama

Who do FlyFin CPAs save freelancers time and money?

Because freelancers, gig workers, independent contractors and sole proprietors are responsible for so much more in terms of taxes, their needs for expert tax advice are different from any other kind of taxpayer, and FlyFin was designed specifically for them. FlyFin automatically tracks self-employed individuals' costs using a powerful A.I. to find even the smallest write-offs and every opportunity to save money on taxes. In addition, FlyFin enables any type of taxpayer to file their taxes, with FlyFin CPAs taking on 95% of the effort, so taxpayers can focus on the other important things in life. FlyFin CPAs file state and federal tax returns with a guaranteed accuracy rate of one hundred percent, saving taxpayers $3,500 on average.
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