TaxBandits Knowledge Base

How to complete Alabama Reconciliation Form A-3?

When filing Forms 1099 and W-2 with the state of Alabama using TaxBandits, we’ll automatically include Form A-3 (Annual Reconciliation of Income Tax Withheld) at no additional cost. 

Follow these instructions to complete the form step by step:

1. Specify Deposit Schedule

• Select your Deposit Schedule (Monthly Filing or Quarterly Filing).
   
  • Choose Monthly Filing if you reported taxes on a monthly basis during the year.
  • Select Quarterly Filing if you reported taxes quarterly.
     
• The selected schedule determines how you’ll report the withheld and remitted taxes in the upcoming sections.

2. Complete 1099 & W-2 Reporting Summary

Mention the number of W-2s and 1099s transmitted with this form and specify the total Alabama income tax withheld as reported. The system then automatically calculates the Total Tax Withheld based on these forms.

3. Report Alabama Tax Withheld & Remitted

• Fill out the amounts for Tax Withheld and Tax Remitted in the appropriate columns.
   
• For each month (if filing monthly) or each quarter (if filing quarterly), enter the amounts of income tax withheld and the amounts remitted to the state.
  • Note: You must list monthly amounts if you withheld $1000 or more during any single month of the year. 
     
• The totals for both columns are automatically calculated at the bottom.
   
  • Tax Withheld: The total amount of Alabama income tax withheld for the year.
  • Tax Remitted: The total amount of tax payments made to the state.

4. Review Payment Summary

• Review the system-generated payment summary:
   
  • If you owe taxes, the Total Tax Due will be displayed.
  • If your account is overpaid, the system will display the overpayment amount and note whether it will be issued as a credit or refund.

5. Select Payment Method

• If your taxes are underpaid, choose your preferred payment method to make tax payments:
   
  • EFT Debit Payment: The amount due will be automatically debited from your account.
  • EFT Credit Payment: Pay via EFT Credit from your bank account to the state's account.