ARKANSAS
separate property state

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Military Income: Military income is exempt.

NOTE:  Domiciles of Texarkana are exempt from Arkansas state taxes.  

Military Filing Requirement:  Yes, an Arkansas tax return must be filed to maintain residency.

Military Spouse Residency Relief Act:  Service member and spouse relocated to state in compliance with military orders.Spouse must be a resident of same state as service member. File Form AR1000NR and write "Military Spouse" on top of front page of the return. Attach Certificate AR-MS to return. Also add any additional documentation such as LES or other pertinent information to help in the processing of the return.

Forms Used:            

Filing Status:  Joint or separate.  If one spouse is not a resident, they can file jointly as nonresidents. 

NOTE 1:  Couples might save money by doing married filing separate on the same return. 
NOTE 2
:  If one spouse owes a debt, they should file separate. 

Attach Copy of Federal Return:  Yes. 

Not Taxed: 

Other State Tax Credit:  Available.  Complete Arkansas 1000 Form, Page 2, line 46 and attach other state return if not e-filed.

Miscellaneous:  Military members are not entitled to Working Taxpayer Credit.  

 

Where to Mail:
Refund: Tax Due:
Arkansas State Income Tax
P O Box 1000
Little Rock, AR 72203-1000
Arkansas State Income Tax
P O Box 2144
Little Rock, AR  72203-2144
General Information:  (501) 682-1100
Forms:  (501) 682-2217
Refund Inquiry:  (501) 582-0200
Electronic Filing (501) 682-7361

No Tax Due:

Arkansas State Income Tax
P O Box 8026
Little Rock, AR 72203-8026

Other Info and Forms:
Arkansas State Income Tax Forms
P O Box 3628
Little Rock, AR  72203-3628
Website:  www.arkansas.gov/dfa/index.php
E-filing Info:  Retain AR8453 for 3 years
Tax Form Instructions:
Resident & Non-Resident Instructions  

 

Filing Status Scenarios

1.  Taxpayer and Spouse Residents (Use also for Single Taxpayer)
2.  Taxpayer and Spouse Different States of Residence
3.  Taxpayer and Spouse Non-Residents
4.  Taxpayer Non-Resident - Spouse Part-Year Resident
5.  Taxpayer Married or Single - Resident but Income from Other State
6.  Amended Return

 

1.  Taxpayer and Spouse Residents (Use also for Single Taxpayer) - Taxpayer and spouse are both Arkansas residents, lived at their present location all year, and one or both had income.

Main Info Screen

W-2 Form.  Arkansas grants an exemption for military income.  To exclude the military income properly you must check the Military box on the bottom of the W-2 form for the military member's income.

Arkansas 1000F Form.  Couples might save money by doing married filing separate on the same return. Check both options to see which one benefits the taxpayer more.  A married filing joint resident Arkansas income tax return is prepared.  

Ensure the military exemption is properly listed on lines 9a and/or 9b for the taxpayer and spouse.

Complete all other fields and forms with red or required information.

2.  Taxpayer and Spouse - Different States of Residence - Taxpayer or spouse is a resident of Arkansas, while the other member is a resident of a different state.  An Arkansas income tax must be prepared due to the taxpayer or spouse having Arkansas earned income.

Main Info Screen.  If the spouse is a domicile (resident) of another state, the parties should file as nonresidents.  For this example, the taxpayer is a resident of Arkansas while the spouse is a resident of North Dakota.

 

 

Resident/Nonresident Worksheet.  Review form to ensure income is split correctly for the appropriate states.

Arkansas Form 1000NR.  If one spouse is not a resident, they can file jointly as nonresidents.  Couples might save money by doing married filing separate on the same return.  Check both options to see which one benefits the taxpayer more.  In this example, it increased their refund to file Married Filing Separately on the Same Return.   Ensure the $9,000 military exemption is properly listed on line 10a, Column A and Column C.

Enter the amount of military income on the appropriate block(s) on line 9A or 9B. 

* * * If a non-resident Arkansas return has been selected, the return cannot be e-filed and MUST BE MAILED in. * * *

Review the remainder of the Arkansas Form 1000NR to ensure the other state income is being subtracted correctly.

3.  Taxpayer and Spouse Non-Residents - Taxpayer and spouse are residents of a different state.  The spouse and taxpayer must file a Arkansas tax return due to one or both having Arkansas earned income.
Main Info Screen

Resident/Nonresident Worksheet.  Review form to ensure income is split correctly for the appropriate states.

Arkansas Form 1000NR.  If both spouses are not residents of Arkansas, they can file jointly or separately as nonresidents.  Couples might save money by doing married filing separate on the same return.  Check all options to see which one benefits the taxpayers more.  In this example, Married Filing Joint resulted in a larger refund.  

To comply with the provisions in the Service Member's Civil Relief Act, the military member's non-resident military income must be taken off of the Arkansas 1000NR Form.  You do this by entering the amount of nonresident military wages from the military member's W-2 form on the line under line 8 (Column A). If the spouse of the military member qualifies under MSRRA, enter their amount on the appropriate line on line 8 (Column A).

* * * The non-resident Arkansas return cannot be e-filed and MUST BE MAILED in. * * *

Review the remainder of the Arkansas Form 1000NR to ensure the other state income is being subtracted correctly.

4.  Taxpayer Non-Resident - Spouse Part-Year Resident - Taxpayer and spouse moved to or from Arkansas during the tax year.  The taxpayer is a resident of a different state.  The Spouse is a part-year resident of Arkansas.  The Spouse and taxpayer must file a Arkansas tax return due to one or both of them having Arkansas earned income and possibly income from another state.
Main Info Screen.  For this example, the taxpayer is in the military and a resident of Indiana.  The taxpayer and spouse moved from Arkansas to North Dakota during the year.  The spouse was a resident of Arkansas but is now changing their residency to North Dakota for tax purposes.  The spouse therefore was a part-year resident of both Arkansas and North Dakota and must file a Arkansas income tax return because the spouse worked in Arkansas.

Part Year Resident States Worksheet.  Review form to ensure income is split correctly for the appropriate states.

Arkansas Form 1000NR.  This form will be generated for an Arkansas part- year resident who must report Arkansas earned income.  Couples might save money by doing married filing separate on the same return.  Check all options to see which one benefits the taxpayers more.  In this example, Married Filing Joint resulted in a larger refund.  

To comply with the provisions in the Service Member's Civil Relief Act, the military member's non-resident military income must be taken off of the Arkansas 1000NR Form.  You do this by entering the amount of nonresident military wages from the military member's W-2 form on the line under line 8 (Column A).

Review the remainder of the Arkansas Form 1000NR to ensure the other state income is being subtracted correctly.

5.  Single or Married Military Resident of Arkansas with Income from Another State  - Taxpayer is single.  The taxpayer must file a Arkansas tax return due to him or her having Arkansas earned income.
Main Info Screen.  For this example the taxpayer is a military member stationed in North Dakota but a resident of Arkansas.  The taxpayer had a job in North Dakota therefore having North Dakota earned income.

W-2 Form.  Arkansas grants an exemption for the first $6,000 of of military income.  To exclude the military income properly you must check the Military box on the bottom of the W-2 form for the military member's income.

Resident/Nonresident Worksheet.  Review form to ensure income is split correctly for the appropriate states.

Arkansas 1000 Form.  Arkansas taxes residents on income from all sources, even income earned while living in another state (North Dakota as in this example).  Ensure the military income is properly listed on line 9 for the taxpayer.

Arkansas 1000 Form, Page 2 - Tax Credits.  On page 2 of the Arkansas Form 1000F, under Tax Credits,link on line 34 to AR 1000TC.

AR 1000 TC Schedule of Tax Credits - Link on Line 2 to the Out of State Tax Credit worksheet.

To complete the Out of State Tax Credit worksheet you must complete the other states tax return first, then enter the amount of tax from the other states tax return.  This is not the amount the tax payer had withheld from his or her pay but the amount of tax imposed on them.  A copy of the other state's return must be attached to the Arkansas return if not e-filed.

Complete all other fields and forms with red or required information.

6.  Amended Return  - An amended Arkansas return must be filed because the taxpayer received new tax information after their Arkansas return was filed.
Federal 1040X Form.  Before making any changes to the tax return add the US 1040X form to the tax return.  You must check the box under Income and Deductions to lock in the entries in Column A - Original amount or as previously adjusted.

Arkansas 1000A - Amended Resident Individual Income Tax Return.  Add the Arkansas 1000A Form to the return.  Answer the questions as in the example.   You must check the box to lock in the entries in Part 1 - Original, before making any changes to the return.

Make whatever changes are required to the federal tax return.  For this example, a new W-2 was received.

Attach an explanation and supporting documentation for items changed. (Do not file an amended return until after you original return has been processed.)

Amended returns can not be e-filed.  The taxpayer must mail the federal 1040X and any state amended returns if required to be filed.