Arkansas Arkansas Income Tax Instruction Booklet
Extracted from PDF file 2021-arkansas-tax-instruction-booklet.pdf, last modified October 2021
Arkansas Income Tax Instruction BookletArkansas 2021 Individual Income Tax Forms and Instructions Full Year Resident Part Year Resident Nonresident Governor Asa Hutchinson ATAP Free File Alliance: Please visit our secure site ATAP (Arkansas Taxpayer Access Point) at www.atap.arkansas.gov. ATAP allows taxpayers or their representatives to log on, make payments and manage their account online. As a member of the “Free File Alliance”, the State of Arkansas offers certain taxpayers the opportunity to electronically file their return with no fee. If you meet the specified criteria (including income, military service, or eligibility for federal Earned Income Tax Credit) you may be eligible for this program. ATAP features are: Make Tax Payments Make Estimated Tax Payments Make name and address changes Check refund status View account letters View 1099-Gs ATAP is available 24 hours. (Registration is not required to make payments, check refund status or view 1099-Gs.) Where’s My Refund? Check your refund status at www.atap.arkansas.gov Identity Theft has been a growing problem nationally and the Department is taking additional measures to ensure tax refunds are issued to the correct individuals. These additional measures may result in tax refunds not being issued as quickly as in past years. Pay tax by credit card (Vendor charges nominal fee) www.acipayonline.com or call (800) 272-9829 For details go to: www.arkansas.gov/efile 7 Simple Reasons to e-file! Faster Refunds: With Direct Deposit Direct Debit Payments Filing Confirmation Provided If You Qualify, It’s Free Makes Complex Returns Easy File Federal & State Forms Together Secure Arkansas e file For your questions/comments: Manager, Individual Income Tax P. O. Box 3628 Little Rock, AR 72203-3628 CONTENTS Tax Help and Forms ........................................................................................................... 3 Electronic Filing................................................................................................................... 4 Identity Theft ....................................................................................................................... 4 Special Information for 2021 ............................................................................................... 5 If the IRS Audits You ........................................................................................................... 6 Information Exchange Programs with the IRS .................................................................... 6 Preservation of Tax Records ............................................................................................... 6 Request Copies of Arkansas Tax Returns .......................................................................... 6 Military Personnel ............................................................................................................... 7 Definitions ........................................................................................................................... 8 . Instructions .................................................................................................................... 9-14 Form Inserts: AR1000F AR1000NR AR3 AR4 AR1000ADJ AR1000D AR-OI AR2441 AR1000TC AR1000-CO Consumer Use Voter Registration Instructions (continued)..................................................................................................... 15 Instructions for Form AR3, Itemized Deduction Schedule ........................................... 16-17 Student Loan Interest Worksheet ..................................................................................... 18 IRA Phase Out Chart ........................................................................................................ 18 Mileage and Depletion Allowances ................................................................................... 19 Depreciation Information .................................................................................................. 19 How to Fill Out Your Check ............................................................................................... 19 For Taxpayers’ Information................................................................................................ 20 Taxpayer Bill of Rights ...................................................................................................... 21 Low Income Tax Tables ............................................................................................... 22-23 . Regular Tax Table ........................................................................................................ 24-28 Page 2 Self-Employed Health Insurance Deduction Worksheet ................................................... 19 Index to Instructions ......................................................................................................... 29 Before Mailing Your Return Checklist .................................................................Back Cover TAX HELP AND FORMS Internet You can access the Department of Finance and Administration’s website at www.dfa.arkansas.gov. Check the status of your refund Get current and prior year forms and instructions Access latest income tax info and archived news Get e-file information You can e-mail questions to: [email protected] Phone Individual Income Tax Hotline.................................. (501) 682-1100 or (800) 882-9275 Representatives are available to assist callers at the numbers above during normal business hours (Monday through Friday from 8:00 a.m. to 4:30 p.m.) with: Taxpayer Assistance Notices Received Forms Amended Returns Audit and Examination Payment Information For hearing impaired access, call (800) 285-1131 using a Text Telephone Device (for Spanish, call (866) 656-1842). Other useful phone numbers: Tax Credits....................................... (501) 682-7106 Withholding Tax............................... (501) 682-7290 Collections....................................... (501) 682-5000 Revenue Legal Counsel.................. (501) 682-7030 Corporate Income Tax..................... (501) 682-4775 Sales and Use Tax........................... (501) 682-7104 Problem Resolution and.................. (501) 682-7751 Tax Information Office (Offers In Compromise) Arkansas Taxpayer Access Point (ATAP) allows taxpayers or their representatives to log on to a secure site and manage their account online. Access ATAP at www.atap.arkansas.gov to: To obtain a booklet or forms you may: Make Tax Payments Make Estimated Tax Payments Make name and address changes Check refund status View account letters View 1099-Gs (Registration is not required to make payments, check refund status or view 1099-Gs.) Mail Choose the appropriate address below to mail your return: TAX DUE RETURN: Arkansas State Income Tax P.O. Box 2144 Little Rock, AR 72203-2144 REFUND RETURN: Arkansas State Income Tax P.O. Box 1000 Little Rock, AR 72203-1000 NO TAX DUE/REFUND RETURN: Arkansas State Income Tax P.O. Box 2144 Little Rock, AR 72203-2144 Be sure to apply sufficient postage or your return will not be delivered by the U.S. Postal Service. Internal Revenue Service................ (800) 829-1040 Social Security Administration......... (800) 772-1213 Forms ATAP Walk-In Representatives are available to assist walk-in taxpayers with income tax questions, but are not available to prepare your return. 1. Access our website at: www.dfa.arkansas.gov/income-tax No appointment is necessary, but plan to arrive before 4:00 p.m. to allow sufficient time for assistance. 2. Visit your county revenue office 3. Visit your local library or The Individual Income Tax Office is located in Room 2300, Ledbetter Building, at 1816 W. 7th Street in Little Rock. 4. Call the Individual Income Tax Hotline (501) 682-1100 or (800) 882-9275 Office hours are Monday through Friday from 8:00 a.m. to 4:30 p.m. Page 3 ELECTRONIC FILING www.arkansas.gov/efile E-file is hassle-free both your federal and Arkansas income tax returns can be filed electronically in one transmission. E-file is smart computer programs catch 98% of tax return errors. E-file is worry-free receive acknowledgement within 2 to 3 business days if your return has been received and accepted. Arkansas participates in the Federal/State Electronic Filing Program for Individual Income Tax. The program is available to most full year residents and certain qualifying nonresidents and part year residents. Since Arkansas is a member of the “Free File Alliance,” depending on the level of income, taxpayers may qualify to file returns for free. (Go to www.arkansas. gov/efile for details.) The State of Arkansas is requesting additional information this filing season in an effort to combat identity tax fraud and ensure that your hard-earned tax refund goes to you. Providing information from your driver’s license or state-issued identification card will help protect your identity and could help process your return quicker. However, this is only a request. Information from your driver’s license is not required, and your return will be processed without the additional information. The information is being requested solely to help protect your identity and ensure a more-secure refund. IDENTITY THEFT In recent years, identity theft associated with income tax returns has become an increasingly severe problem. Sometimes thieves steal a taxpayer’s Social Security Number and other private information then use this information to file tax returns and receive refunds that were not due to them. If you believe your identity may have been used to file an Arkansas state tax return, these are the steps we suggest you take: Contact us at (501) 682-1100 to report that your identity may have been stolen and request a hold on your account to stop all fraudulent refunds. Contact the IRS Identity Protection Specialized Unit at (800) 908-4490 and inform them that your identity was stolen and may have been used to file a fraudulent tax return. You should complete IRS Form 14039, an identity theft affidavit, to support your claim. Send a copy of the stamped IRS identity theft affidavit form to: Arkansas Individual Income Tax, PO Box 3628, Little Rock, AR 72203-3628 Contact the credit bureaus to ensure there have not been any other thefts related to your identity, and ask to have a fraud alert put on your credit report. The numbers to the credit bureaus are listed below: ● Equifax - (800) 525-6285 Page 4 ● Experian - (888) 397-3742 ● Trans-Union - (800) 680-7289 SPECIAL INFORMATION FOR TAX YEAR 2021 Arkansas Tax Treatment of Certain COVID-19 Relief Programs (Act 248 of 2021) Covid-19 Relief Programs that are exempt from lncome Tax in Arkansas Forgiven Paycheck Protection Program (PPP) Loans Economic lnjury Disaster Loans (EIDL): forgiveness, grants, and payment assistance Coronavirus Food Assistance Program (CFAP) payments Market Facilitation Program (MFP) CARES Act Recovery Rebates Shuttered Venue Grants Covid-19 Relief Programs that are not exempt and therefore should be included in Arkansas Income Tax Emergency Rental Assistance (ERA 1 and ERA 2) Restaurant Revitalization Fund Grants Arkansas Ready for Business Grants Other State and Local Pandemic assistance Any other loan forgiveness or grant assistance program not listed. Tax Competitiveness and Relief (Act 182 of 2019): Marginal Income Tax rates for 2021 have been amended and the top rate will be reduced to 5.9%. Unemployment Compensation Benefits are exempt from Income Tax (Act 154 of 2021): For tax years 2021, unemployment compensation is not taxable. Paisley’s Law (Act 935 of 2021) Establishes a tax credit of $500 for families who experience a stillborn child. Amended Teacher’s Qualified Classroom Expenses (Act 971 of 2021) Increases the limit of the allowable amount that can be claimed from $250 to $500 per taxpayer. ADDITIONAL INFORMATION FOR TAX YEAR 2022 Law Enforcement Family Relief Check-Off Program (Act 765 of 2O21) Creates a check-off on lncome Tax forms for donations to the program and trust fund. Effective for taxyears beginning on or after January 1,2022. Philanthropic lnvestment in Arkansas Kids Program Scholarship Credit (Act 904 ot 2021) Crates a tax credit for eligible contributions made to a scholarship-granting organization. The total amount of tax credits awarded in a year shall not exceed $2 million. Additional changes can be found on our website www.dfa arkansas.gov/income-tax Page 5 IF THE IRS AUDITS YOU If the Internal Revenue Service examines your return for any tax year and changes your net taxable income, you must report the changes to the Arkansas Department of Finance and Administration within one hundred eighty (180) days from the receipt of the notice and demand for payment by the Internal Revenue Service. File an Amended Individual Income Tax Return for the year(s) involved reporting the changes to your state return. Attach a copy of the federal changes. If you fail to notify this Department within one hundred eighty (180) days and do not file the required amended return, the Statute of Limitations will remain open for three (3) years on the year(s) in question. Additional interest will be figured on any tax you owe the State of Arkansas. INFORMATION EXCHANGE PROGRAMS WITH THE IRS Under authorization of Internal Revenue Code Section 6103(D) the State of Arkansas participates in several information exchange programs with the Internal Revenue Service: CP2000: The IRS matches income reported on a taxpayer’s federal income tax return with documents (W-2s, 1099s, etc.) provided to the IRS by the payer to determine whether income was omitted from the taxpayer’s return. If unreported income is discovered, the IRS assesses additional federal tax on the omitted income then notifies the State of Arkansas. The taxpayer’s state tax return is then reviewed for unreported income. (Some examples of commonly omitted income include wages, pensions, and cancellation of debt.) Revenue Agent Reports “RARs”: When the IRS adjusts a taxpayer’s federal income tax return as the result of an audit, details are provided to the State of Arkansas. The taxpayer’s state tax return is then reviewed and adjusted if appropriate. (Some examples of RAR adjustments include disallowance of deductions, expenses, or dependents and assessment of early withdrawal penalties.) Non-filer Identification: The IRS provides the Arkansas Department of Finance and Administration with a list of taxpayers who filed federal returns using Arkansas addresses. This information is then compared with Arkansas income tax records to identify individuals who filed federal returns using Arkansas addresses but did not file Arkansas returns. Letters are sent inquiring whether the taxpayer is required to file. The taxpayer should file the return in question or provide documentation why he/she is not required to file. If a sufficient response is not received, state tax is assessed using amounts reported on the taxpayer’s federal return, and the taxpayer is mailed a Notice of Proposed Assessment. PRESERVATION OF TAX RECORDS A taxpayer who files an Arkansas income tax return is required to retain records to prove the accuracy of that return. The records must be retained for at least six (6) years (unless otherwise provided by law) and are subject to examination by the Director at any reasonable time during that period. When a taxpayer fails to preserve and maintain the required records, the director may make an estimated assessment based upon any available information as to the amount of tax due by the taxpayer. Per ACA 26-18-506, the burden of proof of refuting this estimated assessment is upon the taxpayer. REQUEST FOR COPIES OF ARKANSAS TAX RETURNS If your tax return was completed by a paid tax preparer, he/she should be able to provide a copy of the return. If you used a software product to prepare your tax return, you should be able to print a copy of the tax return from the software used. Otherwise to request a copy of your Arkansas tax return, please complete and submit Form AR4506. Form AR4506 may be downloaded from our website at: www.dfa.arkansas.gov/incometax. Page 6 MILITARY PERSONNEL Active-Duty Military Under federal law, a military servicemember’s state of legal residence does not change solely as the result of the servicemember’s assignment for service in another state. An Arkansas resident who enters into military service will remain an Arkansas resident unless they officially change their state of legal residence as described in DD Form 2058. Military servicemembers who are Arkansas residents are subject to the same income tax filing requirements as other Arkansas residents, even if they are serving in another state. These requirements are described under the heading “Who Must File A Tax Return” Military Pay Exemption (Act 1408 of 2013): Provides a 100% exemption from income tax for service pay or allowance received by an active-duty member of the armed forces for tax years beginning on or after January 1, 2014. Active duty includes all members of the armed forces, including the National Guard and Reserve Units. You must file to claim the exemption. Military Spouses Residency Relief Act: Exempts a military spouse’s income from Arkansas tax if the servicemember’s Home of Record is not Akansas and the spouse’s domicile is the same as the service member’s Home of Record. Effective January 1, 2009. Write the words “military spouse” at top of tax return and attach a completed Form AR-MS (available at www.dfa.arkansas.gov/incometax) and a copy of service member’s Leave and Earning Statement (LES) to verify Home of Record. (For future tax purposes, the nonmilitary spouse must submit a new payroll withholding form ARW-4MS, to his/her employer each year to exempt future withholding.) The Military Family Tax Relief Act of 2003 (Act 372 of 2009): This act adopts IRC 121, 134, and 162 as in effect on January 1, 2009. Provisions of this act include exclusion of gain on sale of principal residence, deduction of overnight travel expenses for National Guard and Reserve members, and exclusion from income of “qualified military benefits”. Military Retirement Exemption (Act 141 of 2017): Beginning with tax year 2018, retirement benefits received by a member of the uniformed services as defined in this Act are exempted from income tax. Retirees cannot claim both the military retirement exemption and the $6,000 exemption for traditional IRA or employer sponsored distributions (A.C.A 26-51-307(f)).” Please see instructions for lines 18A and 18b for details. The Servicemembers Civil Relief Act: Deferral of Tax - Upon notice to the Internal Revenue Service or the tax authority of a state or a political subdivision of a state, the collection of income tax on the income of a servicemember falling due before or during military service shall be deferred for a period not more than 180 days after termination of or release from military service, if a service member’s ability to pay such income tax is materially affected by military service. Accrual of Interest or Penalty - No interest or penalty shall accrue for the period of deferment by reason of nonpayment on any amount of tax deferred under this section. Statute of Limitations - The running of a statute of limitations against the collection of tax deferred under this section, by seizure or otherwise, shall be suspended for the period of military service of the servicemember and for an additional period of 270 days thereafter. Residence or Domicile - A servicemember shall neither lose nor acquire a residence or domicile for purposes of taxation with respect to the person, personal property, or income of the servicemember by reason of being absent or present in any tax jurisdiction of the United States solely in compliance with military orders. Military Service Compensation - Compensation of a servicemember for military service shall not be deemed to be income for services performed or from sources within a tax jurisdiction of the United States if the servicemember is not a resident or domiciliary of the jurisdiction in which the servicemember is serving in compliance with military orders. RETIRED MILITARY PERSONNEL Extension of Time for Veterans (Retirees) to File for Refund (Act 238 of 2009): This act extends the statute of limitations for a veteran to file a claim for refund of an overpayment that results from retroactive determination by the Secretary of Veterans Affairs that part or all of the uniformed service retirement payments to the taxpayer are payments made for a service-connected disability and are not included in gross income. Effective January 1, 2001. Page 7 DEFINITIONS GROSS INCOME Gross income is any and all income (before deductions) other than income specifically described as exempt from tax on pages 9 and 10 “Exempt From Income Tax”. Exception: The $6,000 exemption on retirement income, exemption on U.S. active duty military income and military retirement as described on pages 9 -10 are included in gross income. DOMICILE This is the place you intend to have as your permanent home and the place you intend to return to whenever you are away. You can have only one domicile. Your domicile does not change until you move to a new location which you intend to make your permanent home. If you move to a new location but intend to stay there only for a limited time (no matter how long), your domicile does not change. This also applies if you are working in a foreign country. FULL YEAR RESIDENT You are a full year resident if you lived in Arkansas all of calendar year 2021, or if you have maintained a domicile or Home of Record in Arkansas during the tax year. NONRESIDENT You are a nonresident if you did not make your domicile in Arkansas. PART YEAR RESIDENT You are a part year resident if you established a domicile in Arkansas or moved out of the state during calendar year 2021. MILITARY PERSONNEL If Arkansas is your Home of Record and you are stationed outside of Arkansas, you are still required to file an AR1000F reporting all of your income, including U.S. active duty military compensation. However, active duty military compensation is exempt from Arkansas tax beginning in tax year 2014. (If you are stationed in Arkansas and your Home of Record is another state, Arkansas does not tax your U.S. active duty military compensation.) U.S. active duty military compensation includes wages received by members of the Army, Navy, Air Force, Marine Corps, Coast Guard, National Guard, and Reserve Units. DEPENDENTS You may claim as a dependent any person who received over half of his or her support from you, earned less than $4,300 in gross income, and was your: Child Stepchild Mother Father Grandparent Brother Sister Grandchild Stepbrother Stepsister Stepmother Stepfather Mother-In-Law Father-In-Law Brother-In-Law Sister-In-Law Son-In-Law Daughter-In-Law Or, an individual (other than your spouse) who, for the tax year of the taxpayer, had the same principal place of abode as the taxpayer and was a member of the taxpayer’s household. Or, if related by blood: Uncle, Aunt, Nephew, Niece. The term “dependent” includes a foster child if the child had as his principal place of abode the home of the taxpayer and was a member of the taxpayer’s household for the taxpayer’s entire tax year. The term “dependent” does not apply to anyone who is a citizen or subject of a foreign country UNLESS that person is a resident of Mexico or Canada. If your child/stepchild was under age 19 at the end of the year, the $4,300 gross income limitation does not apply. Your child/stepchild may have earned any amount of income and still be your dependent if the other dependency requirements in this section were met. If your child/stepchild was a student under age 24 at the end of the calendar year, the $4,300 gross income limitation does not apply. The other requirements in this section must be met. To qualify as a student, your child/stepchild must have been a full-time student for five (5) months during the calendar year at a qualified school, as defined by the Internal Revenue Service. If your dependent died during the tax year, you may claim the full amount of tax credit for the dependent on your tax return regardless of when the death occurred during the year. Arkansas has adopted Internal Revenue Code §151(c)(6) regarding the tax treatment of kidnapped children. Page 8 INSTRUCTIONS THESE INSTRUCTIONS ARE FOR GUIDANCE ONLY AND DO NOT STATE THE COMPLETE LAW WHO MUST FILE A TAX RETURN FULL YEAR RESIDENTS (Use Form AR1000F) If your and your MARITAL STATUS FILING STATUS is: is: Single (Including divorced Single and legally separated) file if GROSS INCOME* is at least $13,055 Head of Household with 1 or no dependents $18,561 Head of Household with 2 or more dependents $22,126 Married Married Filing Joint $22,016 with 1 or no dependents Married Filing Joint $26,497 with 2 or more dependents Married Filing Separately $8,500 Surviving Spouse in 2019 or 2020, and not remarried in 2021 Surviving Spouse with 1 or no dependents $18,561 Surviving Spouse with 2 or more dependents $22,126 *Gross income is all income (before deductions) other than income specifically described as exempt on pages 9 and 10 “Exempt From Income Tax.” Exception: The $6,000 exemption on retirement income, exemption on U.S. active duty military income and military retirement as described on pages 9 -10 are included in gross income. If your gross income was less than the amount shown in the last column for your filing status, you are not required to file a return. However, you must file a return to claim any refund due. NONRESIDENTS (Use Form AR1000NR) Nonresidents who received any gross income from Arkansas sources must file a return (regardless of marital status, filing status, or amount). PART YEAR RESIDENTS (Use Form AR1000NR) NOTE: The maximum extension that will be granted to an individual on an AR1055-IT is two hundred and ten (210) days, extending the due date until November 15th. When you file your return, check the box indicating you filed a state extension. If the box on the front of your return is not checked, you will not receive credit for your federal or state extension. An extension extends the amount of time to file your return, but does not extend the amount of time to pay. Any tax due must be paid by April 15, 2022 to avoid failure to pay penalty and interest. Payments made on extension should be made using the voucher attached to Form AR1055-IT. See Page 15 for information on penalties and interest. EXEMPT FROM INCOME TAX NOTE: List exempt income on AR4, Part III. (You do not need to list exclusion amounts from numbers 11-13.) 1. Military Pension received as a member of the uniformed services. 2. Money you received from a life insurance policy because of the death of the person who was insured is exempt from tax. NOTE: You must include as taxable income any interest payments made to you from the insurer (the insurance company that issued the policy). 3. Money you received from life insurance, an endowment, or a private annuity contract for which you paid the premiums is allowed cost recovery pursuant to Internal Revenue Code §72. 4. Amounts you received as child support payments are exempt from tax. 5. Gifts, inheritances, bequests, or devises are exempt from tax. 6. Scholarships, fellowships, and grants are taxed pursuant to Internal Revenue Code §117. (Stipends are fully taxable.) For additional information on scholarships, fellowships, and grants see instructions for Line 22 on Page 13. 7. Interest you received from direct United States obligations, its possessions, the State of Arkansas, or any political subdivision of the State of Arkansas is exempt from tax. (Interest received on tax refunds is not exempt income, because it did not result from a debt issued by the United States, the State of Arkansas, or any political subdivision of the State of Arkansas.) Interest from government securities paid to individuals through a mutual fund is exempt from tax. Part year residents who received any gross income while an Arkansas resident must file a return (regardless of marital status, filing status, or amount). WHEN TO FILE IF YOU NEED MORE TIME You can file your calendar year original tax return any time after December 31, 2021, but NO LATER THAN April 15, 2022, (unless an extension has been granted). If you request an extension of time to file your federal income tax return (by filing federal Form 4868 with the IRS) you are entitled to receive the same extension on your Arkansas income tax return. The federal automatic extension extends the deadline to file until November 15th. If you file a fiscal year tax return, your return is due NO LATER THAN three and one-half (3 ½) months following the close of the income year. NOTE: The date of the postmark stamped by the U.S. Postal Service is the date you filed your return. If the due date of your return falls on a Saturday, Sunday, or legal holiday, the return will be considered timely filed if it is postmarked on the next business day. Statute of Limitations – Refunds. An amended return or claim for refund of an overpayment must be filed by the taxpayer within three (3) years from the time the return was filed or two (2) years from the time the tax was paid, whichever is later. The Department no longer requires that a copy of federal Form 4868 be attached to your state tax return. When your Arkansas return is complete and ready to file, simply check the box on the face of the return indicating you filed a federal extension. If you do not file a federal extension, you can file an Arkansas extension using Form AR1055-IT before the filing due date of April 15th. Inability to pay is not a valid reason to request an Arkansas extension. Send your request to: Individual Income Tax Section ATTN: Extension P.O. Box 8149 Little Rock, AR 72203-8149 Page 9 8. Social Security benefits, VA benefits, Workers’ Compensation, Railroad Retirement benefits and related supplemental benefits are exempt from tax. Railroad Retirement Benefits exempt from income tax include tier I, tier II, vested dual benefits (VDB), and supplemental annuity payments reported on Form(s) RRB-1099-R and/or RRB-1099. Private pensions reported on form 1099-R from railroad companies are not considered exempt Railroad Retirement Benefits. 9. The rental value of a home or the housing allowance paid to a duly ordained or licensed minister of a recognized church is exempt to the extent that it was used to rent or provide a home. The rental value of a home furnished to a minister includes utilities furnished to the minister as part of compensation. The housing allowance paid to a minister includes an allowance for utilities paid to the minister as part of compensation to the extent it was used to furnish utilities in the home. 10. Disability income MAY BE exempt from tax pursuant to Internal Revenue Code §104. 11. Beginning with tax year 2014, U.S. active duty military compensation is exempt from tax. To claim the exemption, you must file a return and report all of the income you received during the year. 12. If you received income from an employer sponsored retirement plan, including disability retirement, that is not exempt under IRC §104, the first $6,000 is exempt from tax. If you contributed after-tax dollars to your plan, you are allowed to recover your cost (investment) in your retirement plan in accordance with Internal Revenue Code §72. Then the first $6,000 of the balance is exempt from tax. 13. If you received a traditional IRA distribution after reaching age fifty-nine and one-half (59 1/2), the first $6,000 is exempt from tax. Your traditional IRA distribution may be adjusted for nondeductible IRA contributions, if any, by completing Federal Form 8606 and attaching it to your Arkansas return. Premature distributions made on account of the participant’s death or disability also qualify for the exemption. All other premature distributions or early withdrawals including, but not limited to, those taken for medical expenses, higher education expenses or a first-time home purchase do not qualify for the exemption. A surviving spouse qualifies for the exemption; however he/she is limited to a single $6,000 exemption. NOTE: Total exemptions from all plans described under 12 and 13 cannot exceed $6,000 per taxpayer, not including recovery of cost. 14. Beginning with tax year 2017, income received by a taxpayer under the Community Match Rural Physician Recruitment Program is exempt from income tax. Page 10 FILING AN AMENDED RETURN If filing an amended return, check the box at the top right corner of Form AR1000F/ AR1000NR. Complete the return, replacing the incorrect entries from your original return with the amended entries. Attach an explanation and supporting documentation for items changed. (Do not file an amended return until after your original return has been processed.) Amended return needed: • to make changes or adjustments to your original return • if the IRS examines your federal return for any tax year and changes your net taxable income (required to file an Arkansas amended return within 180 days of IRS notification) Amended return NOT needed: • to correct an address (You must provide a completed Individual Income Tax Account Change Form located on our website at www.dfa.arkansas.gov) • to correct a Social Security Number (Call (501) 682-1100 or write to Individual Income Tax Section, P.O. Box 3628, Little Rock, AR 72203. You may be asked to provide documentation.) • if you are notified by the Income Tax Section that there is an error on your original return • if filing a federal amended return with no impact on your Arkansas income tax return FILING STATUS METHOD B. You must file separate individual tax returns. See instructions for Married Filing Separately on Different Returns, Box 5. If you use Method B, one of you may owe tax and the other may get a refund. The tax due must be paid with the proper tax return and the refund will be due on the other return. YOU MAY NOT OFFSET ONE AGAINST THE OTHER. BOX 3. Filing Status 3 (Head of House- hold) To file as Head of Household you must have been unmarried or legally separated on December 31, 2021 and meet either 1 or 2 below. The term “Unmarried” includes certain married persons who lived apart, as discussed at the end of this section. 1. OR 2. You paid over half the cost of keeping a home in which you lived, and in which one of the following also lived, for more than six (6) months of the year (temporary absences, such as vacation or school, are counted as time lived in the home): a. Your unmarried child, grandchild, greatgrandchild, adopted child or stepchild. This child did not have to be your dependent, but your foster child must have been your dependent. b. Your married child, grandchild, adopted child or stepchild. This child must have been your dependent. c. Any other person whom you could claim as a dependent. DETERMINE YOUR FILING STATUS BOX 1. Filing Status 1 (Single) Check this box if you are SINGLE or UNMARRIED and DO NOT qualify as HEAD OF HOUSEHOLD. (Read the instructions for BOX 3 to determine if you qualify for HEAD OF HOUSEHOLD.) BOX 2. Filing Status 2 (Married Filing Joint) Check this box if you were MARRIED and are filing jointly. IF YOU ARE FILING A JOINT RETURN, YOU MUST ADD BOTH SPOUSES’ INCOME TOGETHER. Enter the total amount in column A on Lines 8 through 23 under “Your/Joint Income”. MARRIED COUPLES BEST FILING STATUS CHOOSING THE If you and your spouse had separate incomes, you might save money by figuring your tax separately using one of the following two methods. Use the method that suits you best. METHOD A. List your income separately under Column A (“Your Income”). List your spouse’s income separately under Column B (“Spouse’s Income”). Figure your tax separately and then add your taxes together. See instructions for Married Filing Separately on the Same Return, Box 4. If you use Method A, your result will be either a COMBINED REFUND or a COMBINED TAX DUE. You paid over half the cost of keeping a home for the entire year that was the main home of your parent whom you can claim as a dependent. Your parent did not have to live with you in your home. MARRIED PERSONS WHO LIVED APART Even if you were not divorced or legally separated in 2021, you may be considered unmarried and file as Head of Household. See Internal Revenue Service instructions for Head of Household to determine if you qualify. BOX 4. Filing Status 4 (Married Filing Separately on the Same Return) Check this box if you were married and are filing SEPARATELY ON THE SAME TAX RETURN. This method of tax computation may reduce your tax liability if both spouses had income. The result will be either a combined refund or a combined tax due. IF ONE SPOUSE HAD A TOTAL NEGATIVE INCOME, YOU MUST FILE MARRIED FILING JOINTLY. BOX 5. Filing Status 5 (Married Filing Separately on Different Returns) Check this box if you were married and are filing separate tax returns. BOX 6. Filing Status 6 [Surviving Spouse] Write the total in the box provided. Multiply the number by $29 and write amount in space provided. Check this box if you are a SURVIVING SPOUSE. LINE 7B. List the name(s) of your dependent(s), Social Security Numbers, and relationship to you in the space provided. DO NOT INCLUDE YOURSELF AND/OR YOUR SPOUSE. The individual(s) you can claim as dependent(s) are described on Page 8. (Attach schedule if more than 3 dependents.) You are eligible to file as a SURVIVING SPOUSE if your spouse died in 2019 or 2020 and you meet each of the following tests: 1. You were entitled to file MARRIED FILING JOINTLY or MARRIED FILING SEPARATELY ON THE SAME RETURN with your spouse for the year your spouse died. It does not matter whether you actually filed a joint return. 2. You did not remarry before the end of 2021. 3. You had a child, stepchild, adopted child, or foster child who qualified as your dependent for the year. 4. You paid more than half the cost of keeping a home, which was the main home of that child for the entire year except for temporary absences. DECEASED TAXPAYER An Arkansas tax return should be filed for a taxpayer who died during the tax year as if the taxpayer had lived the entire year. Check the box after the taxpayer’s name. NOTE: Any refund check issued to a deceased taxpayer will be made out to the estate of the deceased taxpayer, i.e. “Estate of John/Jane Doe”. To cash the check, the bank may require documentation such as death certificate, will, or power of attorney. PERSONAL TAX CREDITS LINE 7A. Each taxpayer and spouse is entitled to one personal tax credit. You can claim additional personal tax credits if you can answer “Yes” to any of these questions: Is your filing status Head of Household or Surviving Spouse? On January 1, 2022, were you age 65 or over? On December 31, 2021, were you deaf? On December 31, 2021, were you blind? Check the box or boxes that apply to you and/or your spouse. You CANNOT claim any of these credits for your children or dependents. Blindness is defined as being unable to tell light from darkness, having eyesight in the better eye not exceeding 20/200 with corrective lens, or having a field of vision limited to an angle of 20 degrees. You can claim the Deaf Credit only if the average loss in speech frequencies (500 to 2000 Hertz) in the better ear is 86 decibels, I.S.O., or worse. Any taxpayer age 65 or over not claiming a retirement income exemption on Line 18 is eligible for an additional $29 (per taxpayer) tax credit. Check the box(es) marked “65 Special”. Add the number of boxes you checked on Line 7A. Add the number of dependents listed on Line 7B. Write the total in the box provided. Multiply the number by $29 and write that amount in the space provided. LINE 7C. If one or more of your dependents had developmental disabilities, enter his/her name(s) on the line. Multiply $500 by number of dependents with developmental disabilities. Enter the total. (Individual must qualify for credit. See Form AR1000RC5 to check if eligible.) NOTE: You must attach Form AR1000RC5 to your return if this is the first year you claim the Credit for Individuals with Developmental Disabilities. A certified AR1000RC5 must be filed with your tax return every five (5) years. If credit was received on a prior year’s return, do not file another AR1000RC5 until the Individual Income Tax Section notifies you. LINE 7D. Total the tax credits from Lines 7A, 7B, and 7C. Enter the total on this line and on Line 34. DIRECT DEPOSIT Get your refund faster with direct deposit. For direct deposit to your checking or savings account, you must enter your routing and account numbers and check the box for either checking or savings. If you checked the box ultimately placing your direct deposit into a foreign account, stop here. Direct deposits will not be deposited into accounts outside the United States; this includes Puerto Rico, Guam and the Virgin Islands. The State of Arkansas is not responsible for the misapplication of a direct deposit that results from error, negligence or malfeasance on the part of the taxpayer, the provider or preparer, financial institution or any of their agents. Check your form carefully, since any error could prevent your bank from accepting your direct deposit. Refunds that are not direct deposited because of Institutional refusal, erroneous account or routing transit numbers, closed accounts, bank mergers or any other reason are issued as paper checks. While the State of Arkansas ordinarily processes a request for direct deposit, it reserves the right to issue a paper check and does not guarantee a specific date for deposit of the refund into the taxpayer’s account. 1099-G Arkansas will no longer mail paper 1099Gs. Instead, we ask that you get this information from our website at www. atap.arkansas.gov. If you wish for us to mail you a paper 1099-G instead, please check the box located above the signature line on page AR1. SIGNATURE(S) Your tax return will not be legal and cannot be processed unless you SIGN IT. Write in the DATE. If you and your spouse are filing a joint tax return or filing separately on the same return, both of you must sign it. If someone else prepares your return, that person must sign and complete the Paid Preparer section. If you prepare your own return, DO NOT use this section. INCOME FULL YEAR RESIDENTS If your filing status is Married Filing Separately on the Same Return, both Column A and Column B must be used. Write your income in Column A and your spouse’s income in Column B. For all other filing statuses, write all income in Column A only. NONRESIDENTS AND PART YEAR RESIDENTS Complete Column A (and Column B if using Filing Status 4) of the AR1000NR as if you were a full year resident. List all of your income from all sources for the entire year in these two columns. List in Column C the total combined income (for both spouses) earned while Arkansas residents and income derived from Arkansas sources. The total tax must be computed on the income totals in Columns A and B. After all allowable tax credits have been subtracted from the total tax, prorate the remaining balance. See instructions for Lines 38A, 38B, 38C, and 38D on Page 14. N O N R E S I D E N T S A N D PA RT Y E A R RESIDENTS MUST ATTACH A COPY OF PAGE 1 AND 2, FEDERAL RETURN 1040, OR YOUR ARKANSAS RETURN WILL NOT BE PROCESSED. Round all amounts to the nearest dollar. (For example, if your Form W-2 shows $10,897.50, round to $10,898. If your Form W-2 shows $10,897.49, round to $10,897.) Staple the state copy of each of your W-2(s), 1099-R(s) and 1099-G(s) to the left margin of the front of the return. LINE 8. Add the wages, salaries, tips, etc. reported on your W-2(s). Enter the total on this line. Attach W-2(s). Enter U.S. Military Compensation on Line 9. Ministers Income: If you were a duly ordained or licensed minister, you received a housing allowance from your church, and you do not file a federal Schedule C, enter your gross compensation from the ministry less rental value of your home. The balance is subject to tax. The rental value of your home must be shown on Form AR4, Part III. Attach AR4 and W-2(s). Page 11 LINE 9. Service pay or allowance received by an active duty member of the armed services is exempt from Arkansas income tax. If you or your spouse had U.S. active duty military compensation, enter gross amount in the space provided. Do not enter an amount in Column A. Attach W-2(s). HOME OF RECORD OTHER THAN ARKANSAS: If your Home of Record is not Arkansas, do not report to Arkansas your income or your nonresident spouse’s income. Fill out and submit AR-NRMILITARY Form to have a note put on your account that you are not required to file a return. Your spouse’s income is exempt from Arkansas tax if your Home of Record is not Arkansas and your spouse’s domicile is the same as your Home of Record. However, if your spouse had Arkansas income tax withheld, he/she will need to file a return to get a refund. Write the words “military spouse” at top of tax return and attach a completed Form AR-MS and a copy of service member’s Leave and Earning Statement (LES) to verify Home of Record. (For future tax purposes, your nonmilitary spouse must submit a new payroll withholding form, ARW4MS to his/her employer each year to exempt withholding.) LINE 10. If you received interest from bank deposits, notes, mortgages, corporation bonds, savings and loan association deposits, and credit union deposits, enter all interest received or credited to your account during the year. If the total is over $1,500, complete and attach Form AR4. LINE 11. If you received dividends and other distributions, enter amounts received as dividends from stocks in any corporation. If the total is over $1,500, complete and attach Form AR4. LINE 12. Enter alimony or separate maintenance received as the result of a court order. LINE 13. If you had business or professional income and filed a federal Schedule C, enter the total dollar amount(s) of net income (or loss) from your federal Schedule C. If you did not file a federal Schedule C, submit a similar schedule and enter the net income (or loss). If you filed a federal Schedule C, attach it to your return. Business income may not be split between you and your spouse unless a partnership was legally established. Report partnership income on Form AR1050 and attach K-1(s) for each partner. Include on Line 22, Other Income, any federal/ state depreciation differences. LINE 14. If you had gains or losses from the sale of real estate, stocks or bonds, or gains or losses from capital assets from partnerships, S corporations, or fiduciaries, enter your taxable share. Adjust the amount of gain or loss for any federal/state depreciation differences. Arkansas did not adopt the federal “bonus depreciation” provision from previous years. Page 12 Therefore, there may be a difference in federal and Arkansas amounts of depreciation allowed. Adjust your gains and losses for depreciation differences, if any, in the federal and Arkansas amounts on Lines 2, 5 and 10 of the Arkansas Form AR1000D. If, after the netting process, you had a capital gain or loss reported on federal Schedule D or on Form 1040/1040A, use Arkansas Form AR1000D to determine the taxable amount to enter. Attach federal Schedule D and Arkansas Form AR1000D to your return. The amount of capital loss that can be deducted after offsetting capital gains is limited to $3,000 ($1,500 per taxpayer for filing Status 4 or 5). If your capital loss was more than the yearly limit on capital loss deductions, you can carry over the unused part to later years until used up. The gain on the sale of your personal residence is exempt up to $250,000 per taxpayer ($500,000 for married couples filing on the same return). The property must, during the 5 year period ending on the day of sale, be owned and used by the taxpayer(s) as the principal residence for periods aggregating 2 years or more. LINE 15. Enter the ordinary gain or (loss) from Part II of federal Form 4797. Adjust for any differences in Arkansas and federal depreciation. The capital loss limit does not apply. Attach federal Form 4797 and/or AR4684 if applicable. LINE 16. Use this line to report taxable lumpsum distributions, annuities, and traditional IRA distributions. Include early withdrawal of traditional IRA distributions on this line. List only the amount of withdrawal and attach the federal Form 5329 showing the tax on premature distribution. Also, enter ten percent (10%) of the tax from the federal Form 5329, Part I and Part II, on Line 32. If you received a distribution which does not qualify for the Lump-Sum Distribution Averaging Schedule (AR1000TD), list the total distribution received in 2020. (See AR1000TD to determine if you qualify to use the averaging method.) Attach 1099-R(s). Premature distributions are amounts you withdrew from your traditional IRA, deferred compensation, or thrift savings plans before you were either age 59 ½ or disabled. Rollovers on distributions are tax exempt. NOTE: If you filed a claim under McFadden v. Weiss or Maples v. Weiss and your basis has been fully recovered, enter the amount from Box 1 of your 1099R(s) as the “Gross” and “Taxable Amount” on Line 18A or 18B. LINE 17. Retirement benefits received by a member of the uniformed services are exempt from income tax. If you or your spouse had U.S. military pension compensation, enter gross amount in the applicable boxes provided for primary and spouse, regardless of filing status. Retirees cannot claim both the military retirement exemption and the $6,000 exemption for traditional IRA distributions (A.C.A 26-51-307(f)). Attach 1099-R(s). PRIMARY EMPLOYER PENSION PLAN(S)/ QUALIFIED IRA(s): (new instructions) LINE 18A. If you had income from an employmentrelated pension plan or a qualified traditional IRA distribution, enter the gross amount(s) from Box 1 of your 1099-R(s) in the space provided. Enter the federal taxable amount from Box 2a of your 1099R(s) in the space provided. If Box 2a is blank, use the Simplified Method Worksheet in the federal 1040 Instruction Booklet to calculate the taxable amount of your distribution. You are entitled to a $6,000 exemption from the taxable amount; the balance is taxable to Arkansas. Enter the balance on Line 18A, Column A. Attach 1099-R(s). LINE 18B. If filing status 2, Married Filing Joint, spouse must enter the taxable amount on line 18B, Column A. If filing status 4, Married Filing Separately on the Same Return, spouse must enter the taxable amount on line 18B, Column B. You are eligible for the $6,000 exemption for retirement or disability benefits provided the distribution was from public or private employmentrelated retirement systems, plans, or programs. (The recipient does not have to be retired.) The method of funding is irrelevant. The exemption may be taken from either lump-sum or installment payments. The early withdrawal penalty may be applicable even though the exemption is granted. If you received a traditional IRA distribution after reaching the age of fifty-nine and one-half (59 1/2), the first $6,000 is exempt from tax. Premature distributions made on account of the participant’s death or disability also qualify for the exemption. All other premature distributions or early withdrawals including, but not limited to, those taken for medical expenses, higher education expenses, or a first-time home purchase do not qualify for the exemption. Retirees cannot claim both the military retirement exemption and the $6,000 exemption for traditional IRA or employer sponsored retirement distributions (A.C.A 26-51-307(f)). NOTE: If you made nondeductible contributions to your traditional IRA, enter taxable amount from federal Form 8606 in the space provided. Attach federal Form 8606. LINE 19. If you had income from rents, royalties, estates or trusts, profits (whether received or not) from partnerships, fiduciaries, small business corporations, etc., enter the amounts as reported on your federal Schedule E. If you are filing a return for a taxable year that is not the same as the annual accounting period of your partnership or trust, report your distributive share(s) of net profits in the accounting period that ends in your taxable year. Attach federal Schedule E. Nonresident beneficiaries pay tax only on Arkansas income. LINE 20. If you had farm income, enter the amount reported on your federal Schedule F. Farm income may not be split between you and your spouse unless a partnership was legally established. Partnership income must be reported on Form AR1050, with K-1(s) for each partner. Attach federal Schedule F. ADJUSTMENTS LINE 24. If you are claiming an adjustment from the list below, use Form AR1000ADJ and include the total on this line. Attach Form AR1000ADJ. Gambling winnings are subject to tax. Report winnings on line 4 as an addition to income of Form AR-OI. Attach Form W-2G(s). Border city/Texarkana exemption Tuition Savings Program Payments to IRA Payments to MSA Payments to HSA Deduction for interest paid on student loans Contributions to Intergenerational Trust Moving expenses Self-employed health insurance deduction KEOGH, Self-employed SEP and Simple Plans Forfeited interest penalty for premature withdrawal Alimony/Separate Maintenance Paid Support for permanently disabled individual Organ Donor Deduction Military Reserve Expenses Reforestation Deduction Teachers Qualified Classroom Investment Expense Achieving A Better Life Experience Program Reimbursement of medical expenses from a previous year: if you itemized deductions in that year and it reduced your tax. LINE 25. Subtract Line 24 from Line 23, Total Income. Enter amount on this line. This is your Adjusted Gross Income (AGI). LINE 21. For 2021, per Act 154 of 2021, unemployment compensation is not taxable. Do not include these amounts on line 23. Attach a copy of the 1099-G. LINE 22. Enter net other income/loss and depreciation differences. Attach Form AR-OI. Some examples of what must be reported are: Gambling winnings: Amounts recovered on bad debts that you deducted in an earlier year. Net operating loss (NOL) from an earlier year to carry forward to 2021: enter as a subtraction from income. Attach form AR1000-NOL to show the amount of loss and the year the loss occurred. A net operating loss may be carried forward for five (5) years. (NOL carrybacks not allowed.) Scholarships, fellowships, and grants: A qualified scholarship, fellowship, or grant is exempt from tax only if: 1) You were a candidate for a degree at an educational institution, and 2) Received a qualified scholarship, fellowship, or grant. A qualified scholarship, fellowship, or grant is any amount you received that was used under the terms of the grant for: 1) Tuition and fees required for enrollment, or 2) Fees, books, supplies and equipment required for the course(s) at the educational institution. (These items must have been required of all students in that course.) Foreign students who are exempt from federal taxes because of a tax treaty must file and pay tax on all income including non-qualified scholarship or fellowship income. Stipends are taxable. LINE 23. Add Lines 8 through 20 and line 22 and enter total in the appropriate columns on this line. This is your Total Income. TAX COMPUTATION LINE 26. Select only one tax table for Line 27. See tax tables and qualifications for each table on pages 22-28. If you use an exclusion for active duty military compensation, employer sponsored pension income, or a qualified traditional IRA distribution, you do not qualify for a Low Income Tax Table. You may elect NOT TO USE the exclusion(s) to which you are entitled and use a Low Income Tax Table if you fall within the income limits. CAUTION: If you qualify to use a Low Income Tax Table, enter zero (0) on Line 27, Column A. (The Standard Deduction is already built into the table.) If you use the regular tax table, enter the larger of your itemized deductions (from Form AR3) or your Standard Deduction on Line 27. Itemized Deductions: To compute your itemized deductions, complete Form AR3 and attach it to your return. Make sure that your total itemized deductions exceed the Standard Deduction. (For Form AR3 instructions see pages 16-17 of this booklet.) NOTE: If you are filing status 4 or 5 and one spouse itemizes, then both spouses must itemize. (If you are filing status 5 and your spouse itemizes on a separate return, you must still prorate your deductions based on both spouse’s incomes. Include a copy of the AR3 to support deductions.) Standard Deduction: The Standard Deduction for your filing status is the amount shown below. (If the amount on Line 25 is less than the Standard Deduction, enter the amount from Line 25 on Line 27.) Filing Standard Status Deduction 1 Single $2,200 2 Married Filing Joint $4,400 3 Head of Household $2,200 4 Married Filing Separately $2,200 each on Same Return 5 Married Filing Separately $2,200 on Different Returns 6 Surviving Spouse $2,200 NOTE: The $2,200 Standard Deduction does not apply to taxpayer’s dependent(s). LINE 27. SELECT THE PROPER TAX TABLE and check the appropriate box. You will be in one of the following categories: 1) Low Income Tax Table 2) Standard deduction 3) Itemized deductions If standard deduction or itemized deductions is selected you must use the Regular tax table. LINE 28. Subtract Line 27 from Line 25. This is your Net Taxable Income. LINE 29. Using the appropriate tax table locate the tax for your income and enter here. LINE 30. the total. Add Lines 29(A) and 29(B) and enter LINE 31. If you received a lump-sum (total) distribution from a qualified retirement plan during 2021, you may be eligible to use the averaging method to figure some of your tax at a lower rate. Read the instructions for Form AR1000TD to determine if you are eligible to use this method. If so, complete Form AR1000TD and enter amount here. Attach Form AR1000TD. LINE 32. Taxpayers subject to additional tax on their federal return from a traditional IRA or employer qualified retirement plan are subject to additional tax on their state return. Enter ten percent (10%) of the federal amount from Part I of federal Form 5329. Be sure to enter total distribution(s) from Part I, Form 5329, on Line 16 or 18 of Form AR1000F/ AR1000NR. Taxpayers subject to additional tax on a distribution from a Coverdell Education Savings Account, include ten percent (10%) of the federal amount from Part II of federal Form 5329 on this line. Be sure to include the taxable amount of the Coverdell Education Savings Account distribution on Line 22 of Form AR1000F/AR1000NR (Other Income). LINE 33. the total. Add Lines 30 through 32 and enter Page 13 TAX CREDITS PRORATION LINE 34. Enter the total personal tax credits from Line 7D. IF FILING A FULL YEAR RESIDENT RETURN, go to instructions for Line 39. The instructions for Line 38A through Line 38D apply only to nonresidents and part year residents. LINE 35. To Claim the Child Care Credit use Form AR2441 to figure amount to be claimed. A copy of Form AR2441 “Credit for Child and Dependent Care Expenses” must be attached to your Arkansas return. If you are claiming the Early Childhood Program Credit on Line 43, the total amounts from Line 35 and Line 43 can not exceed the amount allowed on Form AR2441. LINE 36. Complete Form AR1000TC if you are eligible for any credit(s) listed below and include the total on this line. Attach Form AR1000TC. State Political Contribution Credit Other State Tax Credit Credit for Adoption Expenses Phenylketonuria Disorder Credit Stillborn Child Credit Tax Credit(s) LINE 37. the total. N O N R E S I D E N T S A N D PA R T Y E A R RESIDENTS ONLY, read the following instructions to determine your correct Arkansas tax liability. Attach a complete copy of your federal return. If Total Credits on Line 37 is more than Total Tax on Line 33, the difference is not refundable. NOTE: If your net tax is $1,000 or more, and you failed to make a declaration of Estimated Tax (Form AR1000ES, Voucher 1), or pay withholding equal to ninty 90% of your net tax, a penalty of ten percent (10%) will be assessed. See instructions for Lines 52A and 52B for more information. LINE 38B. Enter total of Columns A and B from Line 25. LINE 38C. Divide amount on Line 38A by amount on Line 38B to arrive at your Arkansas percentage of income. Enter as a decimal rounded to six places. Do not exceed 100%. If you are filing prior year tax returns past the due date of the tax return, the refund/overpayment from those tax returns cannot be carried forward as estimated tax. Example: $2,500/$525,000 = 0.004762 or $10,000/$60,000 = 0.166667 LINE 38D. Multiply amount on Line 38 by decimal on Line 38C for Arkansas apportioned tax liability. PAYMENTS LINE 39. Enter Arkansas tax withheld from your W-2(s)/1099(s). You have already paid this amount of tax during the year. If you have MORE THAN ONE W-2/1099, be sure to add the Arkansas income tax withheld from all W-2(s)/1099(s). Enter the total withheld. IF YOU AND YOUR SPOUSE ARE FILING ON THE SAME RETURN, add the Arkansas state income tax withheld from all your W-2(s)/1099(s). Enter the combined total withheld. If you did not receive (or lost) your W-2(s) and Arkansas tax was withheld from your income, you should take the following steps IN THE ORDER LISTED BELOW: 1) Ask your employer for copies of your W-2(s). If you cannot obtain them from your employer you should 2) C o n t a c t t h e S o c i a l S e c u r i t y Administration at (800) 772-1213. Only if you cannot obtain your W-2(s) from your employer or SSA you may 3) Complete federal Form 4852 and attach a copy of your final pay stub to support your amounts. CAUTION: You WILL NOT receive credit for tax withheld or receive a tax refund, unless you attach CORRECT AND LEGIBLE W-2(s) or other approved documentation to your tax return. DO NOT include FICA, federal income tax or tax paid to another state. Page 14 DO NOT include PENALTIES OR INTEREST as part of the amount paid. If you and your spouse filed a JOINT declaration and you and your spouse choose to file your tax returns on separate forms this year, payments made under the joint declaration of estimate will be credited to the primary filer. LINE 38A. Enter adjusted gross income from Line 25, Column C. Add Lines 34 through 36 and enter LINE 38. Subtract Line 37 from Line 33. This is your Net Tax. If Line 37 is greater than Line 33, enter zero (0). LINE 40. If you made an estimated declaration and paid estimated tax payments on 2021 income OTHER THAN wages, salaries, tips, etc., write the total paid in this space. The only amount to enter here is total payments you made on a 2021 Declaration of Estimated Income Tax (includes January 15, 2022 installment and/or credit brought forward from 2020 tax return). DO NOT correct a W-2 yourself. Your employer must issue you a corrected W-2. LINE 41. If you filed an Arkansas extension request and paid tax with your request, enter the amount paid. LINE 42. PREVIOUS PAYMENTS: This line is for amended returns only. Enter the total of any previous payment(s) made with your original return and/or billing notices and amended return(s). LINE 43. Enter the APPROVED Early Childhood Program Credit Form AR2441. This is for individuals with a dependent child placed in an APPROVED child care facility while the parent or guardian worked or pursued employment. (Facility must be approved by the Arkansas Department of Education as having an appropriate early childhood program as defined by Arkansas law.) Enter the certification number and attach Form AR2441 and Certification Form AR1000EC. Contact your child care facility for Form AR1000EC. If you are claiming the Early Childhood Program Credit on Line 43, the total amounts from Line 35 and Line 43 can not exceed the amount allowed on Form AR2441. LINE 44. Add the amounts on Lines 39, 40, 41, 42 and 43. This is your TOTAL PAYMENTS. LINE 45. PREVIOUS REFUND: This line is for amended returns only. Enter the total of any previous refund(s) from your original return and amended return(s). LINE 46. Sub
Tax Instruction Booklet
More about the Arkansas Tax Instruction Booklet Individual Income Tax TY 2021
This free instruction booklet provides information on Arkansas tax deductions, e-filing your tax return, getting your income tax refund, and completing your tax forms. Tax Instruction Booklet requires you to list multiple forms of income, such as wages, interest, or alimony .
We last updated the Arkansas Income Tax Instruction Booklet in January 2022, so this is the latest version of Tax Instruction Booklet, fully updated for tax year 2021. You can download or print current or past-year PDFs of Tax Instruction Booklet directly from TaxFormFinder. You can print other Arkansas tax forms here.
Other Arkansas Individual Income Tax Forms:
|Form Code||Form Name|
|Form AR1000F||Full Year Resident Individual Income Tax Return|
|Tax Instruction Booklet||Arkansas Income Tax Instruction Booklet|
|Form AR1000NR||Part Year or Non-Resident Individual Income Tax Return|
|Form AR1000ES||Individual Estimated Tax Declaration Vouchers|
|Form AR3||Itemized Deduction Schedule|
Arkansas usually releases forms for the current tax year between January and April. We last updated Arkansas Tax Instruction Booklet from the Department of Revenue in January 2022.
About the Individual Income Tax
The IRS and most states collect a personal income tax, which is paid throughout the year via tax withholding or estimated income tax payments.
Most taxpayers are required to file a yearly income tax return in April to both the Internal Revenue Service and their state's revenue department, which will result in either a tax refund of excess withheld income or a tax payment if the withholding does not cover the taxpayer's entire liability. Every taxpayer's situation is different - please consult a CPA or licensed tax preparer to ensure that you are filing the correct tax forms!
Historical Past-Year Versions of Arkansas Tax Instruction Booklet
We have a total of seven past-year versions of Tax Instruction Booklet in the TaxFormFinder archives, including for the previous tax year. Download past year versions of this tax form as PDFs here:
While we do our best to keep our list of Arkansas Income Tax Forms up to date and complete, we cannot be held liable for errors or omissions. Is the form on this page out-of-date or not working? Please let us know and we will fix it ASAP.