Form 20C at a glance
What it is: Form 20C is the 2025 Alabama Department of Revenue Corporation Income Tax Return for the year January 1 - December 31, 2025, or other tax year.
Who signs: Under penalties of perjury, you declare that you have examined this return and accompanying schedules and statements, and to the best of your knowledge and belief they are true, correct, and complete. Please Sign Here with Signature, Title, Date and Daytime Telephone No.
What to bring and attach to Form 20C
Unless a copy of the federal return is attached, this return will be considered incomplete (see also 20C instructions, other information, no. 5).
A filled-in Form 20C example: a multistate corporation apportions its income
How to fill out Form 20C, box by box
Tax year, federal business code number and federal employer identification number
For the year January 1 - December 31, 2025, or other tax year, fill in beginning and ending and mark CY, FY, SY or 52/53 WK.
Enter the FEDERAL BUSINESS CODE NUMBER and the FEDERAL EMPLOYER IDENTIFICATION NUMBER.
Filing Status
Check applicable Filing Status: 1. Corporation operating only in Alabama. 2. Multistate Corporation - Apportionment (Sch. D-1). 3. Multistate Corporation - Percentage of Sales (Sch. D-2). 4. Multistate Corporation - Separate Accounting (Prior written approval required and must be attached). 5. Proforma Return - files as part of Alabama Affiliated Group.
Check applicable box
Check applicable box: PL 86-272, Initial return, Final return, Amended return or Federal audit change.
Name, address and the federal form
Enter the Name, Address, Suite, Floor, etc., City, State, Country (if not U.S.) and 9-Digit Zip Code.
CHECK ONLY ONE BOX for the form the taxpayer files for federal purposes: 1120, 1120-F, 1120-REIT, 990/990T or Other.
This company files as part of
This company files as part of a consolidated federal group or a consolidated Alabama group: check that box and enter the Federal Parent Name and FEIN or the Alabama Parent Name and FEIN.
Check 2220AL Attached or Schedule of Adjustments to FTI.
Lines 1 to 4, federal taxable income
Line 1 is FEDERAL TAXABLE INCOME (see instructions). Line 2 is Federal Net Operating Loss (included in line 1). Line 3 is Reconciliation adjustments (from line 26, Schedule A). On line 4, add lines 1, 2 and 3 for Federal taxable income adjusted to Alabama Basis.
Lines 5 to 10, apportioned income
On line 5, enter Net nonbusiness (income)/loss - Everywhere (from Schedule C, line 2, col. E). On line 6, add lines 4 and 5 for Apportionable income. Line 7 is the Alabama apportionment factor (from line 9, Schedule D-1). On line 8, multiply line 6 by line 7 for Income apportioned to Alabama. Line 9 is Net nonbusiness income/(loss) - Alabama (from Schedule C, line 2, col. F). On line 10, add line 8 plus line 9 for Alabama income before federal income tax deduction.
Lines 11 to 14, Alabama taxable income
Line 11a is Federal income tax deduction /(refund) (from line 12, Schedule E). Line 11b is Small Business Health Insurance Premiums (see instructions). On line 12, line 10 less lines 11a and b is Alabama income before net operating loss (NOL) carryforward. Line 13 is Alabama NOL deduction (see instructions). On line 14, line 12 less line 13 is Alabama taxable income.
Lines 15 to 19, Alabama Income Tax
Line 15 is Alabama Income Tax (6.5% of line 14). Line 16 is LIFO Reserve Tax Deferral (see instructions). On line 17, line 15 less line 16 is Alabama Income Tax after LIFO Reserve Tax Deferral. Line 18 is Nonrefundable Credits (from Schedule BC, Section E, line E3). On line 19, line 17 less line 18 is Net tax due Alabama.
Line 20, Payments
Under 20 Payments, enter a Carryover from prior year, b Current year's estimated tax payments, c Current year's Composite Payment(s)/Electing Pass-Through Entity Credit(s) from Schedule CP-B, line 3 (see instructions), d Extension payment, e Payments prior to adjustment and f Refundable credits (from Schedule BC, Section F, line F5). On line 20g, add lines 20a through 20f for Total Payments.
Lines 21 and 22, reductions and the total amount due
Under Reductions/applications of overpayments, enter a Credit to subsequent year's estimated tax, b Penny Trust Fund, c Penalty due (see instructions) and d Interest due (see instructions). On line 21e, total lines 21 a, b, c and d for Total reductions.
On line 22, enter Total amount due/(refund): line 19 less 20g, plus 21e.
Please Sign Here
Check the box to authorize a representative of the Department of Revenue to discuss your return and attachments with your preparer.
Schedule A, Reconciliation Adjustments
Schedule A, Reconciliation Adjustments of Federal Taxable Income to Alabama Taxable Income: §40-18-33, Code of Alabama 1975, defines Alabama Taxable Income as federal taxable income without the benefit of the federal net operating loss plus specific additions and less specific deductions.
On line 11, add lines 1 through 10 for Total additions. On line 25, add lines 12 through 24 for Total deductions. On line 26, subtract line 25 from line 11 for TOTAL RECONCILIATION ADJUSTMENTS; enter it here and on line 3, page 1 (enclose a negative amount in parentheses).
Schedule B, Alabama Net Operating Loss Carryforward
Schedule B, Alabama Net Operating Loss Carryforward Calculation (§40-18-35.1, Code of Alabama 1975): enter the Alabama net operating loss here and on line 13, page 1.
Schedule C, Allocation of Nonbusiness Income
Schedule C, Allocation of Nonbusiness Income, Loss, and Expense: use only if you checked Filing Status 2, page 1. Enter Column E total ((income)/loss) on line 5 of page 1. Enter Column F total (income/(loss)) on line 9 of page 1.
Schedule D-1, Apportionment Factor
Schedule D-1, Apportionment Factor: use only if Filing Status 2 or Filing Status 5, page 1 with Multi-State Operations. Amounts must be Positive (+) Values. On line 9, line 8a/8b = ALABAMA APPORTIONMENT FACTOR; enter it here and on line 7, page 1.
Schedule D-2, Percentage of Sales
Schedule D-2, Percentage of Sales: use only if you checked Filing Status 3, page 1. On line 1, enter Gross receipts from sales. On line 2, multiply line 1, Alabama by .0025 and enter the tax due here and on page 1, line 15.
DO NOT USE THIS SCHEDULE IF ALABAMA SALES EXCEED $100,000. (checked October 31, 2026)
Schedule E, Federal Income Tax Deduction
Schedule E, Federal Income Tax (FIT) Deduction/(Refund): only method 1552(a)(1) can be used to calculate the Federal Income Tax Deduction.
If this corporation is an accrual-basis taxpayer and files a separate (nonconsolidated) federal income tax return with the IRS, skip to line 6 and enter the amount of federal income tax liability shown on Form 1120.
If this corporation is a cash-basis taxpayer and files a separate (nonconsolidated) federal income tax return with the IRS, skip to line 6 and enter the amount of federal income tax paid during the year.
If this corporation is a member of an affiliated group which files a consolidated federal return, enter the separate company income from line 30 of the proforma 1120 for this company on line 1. You must complete lines 1-5 before moving on to line 6.
Items excluded from Alabama Taxable Income must be added to adjusted total income on line 8b to calculate the Federal Income Tax deduction (this includes any amounts listed on Schedule A lines 13, 14, 17, 18, and 19).
On line 12, enter the Net federal income tax deduction /
More rules for Form 20C
Do not submit page 5 of Alabama 20C - 2025 to the Alabama Department of Revenue with your Form 20C or BIT-V.
Common questions about Form 20C
Where do I file it?
Mail non-payment returns to Alabama Department of Revenue, Income Tax Administration Division, Corporate Tax Section, PO Box 327430, Montgomery, AL 36132-7430. Payment returns, mail with payment voucher (Form BIT-V) to Alabama Department of Revenue, Income Tax Administration Division, Corporate Tax Section, PO Box 327435, Montgomery, AL 36132-7435. Federal audit change returns, mail to Alabama Department of Revenue, Income Tax Administration Division, Corporate Tax Section, PO Box 327451, Montgomery, AL 36132-7451.
Sources
[1] Form 20C (2025), Corporation Income Tax Return, Alabama Department of Revenue (the Official source link on this page).