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- Glossary of frequently used tax terms from eSmart Tax
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Arkansas Form AR1000F - Income Tax Return(Full Year Resident) Instructions
SPECIAL INFORMATION FOR 2013
FEDERAL TAX PROVISIONS MAY AFFECT YOUR 2012 ARKANSAS TAX RETURN - The State of Arkansas retroactively adopted IRC §163 and §408, part of the American Taxpayer Relief Act of 2012. For tax year 2012 these sections allow for a deduction of mortgage insurance premiums (PMI) and tax free distributions from an IRA for charitable purposes. Taxpayers who have already filed 2012 returns but qualify to claim either or both of these tax provisions may amend their returns using Form AR1000F (full year resident) or AR1000NR (part year resident or nonresident).
Taxpayers claiming a deduction for PMI should report the amount on Line 26 of the itemized deduction schedule, Form AR3. Tax free distributions from an IRA for charitable purposes should be reported on Line 51 of Form AR1000F or AR1000NR. Income tax forms are available at www.arkansas.gov/incometax or by calling the Individual Income Tax Section at (501) 682-1100 or (800) 882-9275.
Amended Returns - Taxpayers amending their original returns should simply check the "AMENDED RETURN" box on Form AR1000F, AR1000NR, or AR1000S, and then complete the return using their corrected information. No separate amended return form is necessary. See page 12 for instructions. (For tax years 2009 and prior, amended forms are available at www.arkansas. gov/incometax.)
Vouchers - All payments must be accompanied by an appropriate payment voucher, including payments made with returns. Failure to send a voucher with a payment will cause delayed processing of the payment, which could result in a billing notice being sent. See line 50C on Form AR1000F or AR1000NR and page 17 for instructions.
Arkansas Taxpayer Access Point (ATAP) - ATAP allows taxpayers or their representatives to log on to a secure site and manage all of their tax accounts online. ATAP allows taxpayers to make name and address changes, view letters on their accounts, make payments and check refund status. (Registration with ATAP is not required to make payments or check refund status.) Go to www.atap.arkansas.gov for more information.
New Set Offs Added
Act 158 of 2013 authorizes a set off against an Arkansas income tax refund for a debt owed to the Arkansas Real Estate Commission. Effective August 15, 2013.
Act 961 of 2013 authorizes a set off against an Arkansas income tax refund for a debt owed to the Arkansas Public Defender Commission. Effective August 15, 2013.
Income Tax Technical Corrections Act (Act 1254 of 2013)
IRC §163 as in effect on January 1, 2012 regarding deduction of qualified mortgage insurance premiums as interest expense.
IRC §179 as in effect on January 1, 2009 regarding depreciation dollar limits and phase out thresholds.
IRC §170 as in effect on January 1, 2012 regarding deduction of charitable contributions.
IRC §221 as in effect on January 1, 2013 regarding deduction of interest paid on qualified education loans.
Military Spouses Residency Relief Act - Exempts a military spouse's income from Arkansas tax if the service member's Home of Record is not Arkansas 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.arkansas.gov/incometax) and a copy of service member's 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".
Treatment of Combat Pay Clarified (Act 29 of 2005) - This act adopts Sections 112 and 692 of the Internal Revenue Code as in effect on January 1, 2005 to clarify that combat zone compensation is exempt from Arkansas individual income tax and that the income of a member of the armed forces is exempt in the year of the person's death. This act applies to tax years beginning on or after January 1, 2005.
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.
Reminder: U.S. Military retirement DOES NOT qualify as U.S. Military compensation, and IS NOT eligible for the $9,000 military exemption on Lines 9A or 9B. U.S. Military retirement is eligible for the $6,000 retirement exemption and should be listed on Lines 17A and/or 17B.
GROSS INCOME - Gross income is any and all income (before deductions) other than the kinds of income specifically described as exempt from tax on pages 11 and 12 "Exempt From Income Tax".
Exception: The $6,000 exemption on retirement income and the $9,000 exemption on military income as described on page 12 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 2013, 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 2013.
MILITARY PERSONNEL - If Arkansas is your Home of Record (HOR) and you are stationed outside the State of Arkansas, you are still required to file an AR1000F reporting all of your income, including U.S. Military Compensation. If you are stationed in Arkansas and your Home of Record is another state, Arkansas does not tax your U.S. Military Compensation.
U.S. Military compensation includes wages received from the Army, Navy, Air Force, Marine Corps, Coast Guard, National Guard, Reserve Units, and the U.S. Public Health Service.
DEPENDENTS - You may claim as a dependent any person who received over half of his or her support from you, earned less than $3,900 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 $3,900 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 $3,900 gross income limitation does not apply. The other requirements in this section still 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.
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 MARITAL STATUS is:||and your FILING STATUS is:||file if GROSS INCOME* is at least|
|Single (Including divorced and legally separated)||Single||$11,412|
|Head of Household with 1 or no dependents||$16,224|
|Head of Household with 2 or more dependents||$19,339|
|Married||Married Filing Joint with 1 or less dependents||$19,244|
|Married Filing Joint with 2 or more dependents||$23,160|
Married Filing Separately
|Widowed in 2011 or 2012, and not remarried in 2013||Qualifying Widow(er) with 1 or no dependents||$16,224|
|Qualifying Widow(er) with 2 or more dependents||$19,339|
*Gross income is all income (before deductions) other than income specifically described as exempt on pages 11 and 12 "Exempt From Income Tax."
Exception: The $6,000 exemption on retirement income and the $9,000 exemption on military income as described on page 12 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 taxable income from Arkansas sources must file a return (regardless of marital status, filing status, or amount).
PART YEAR RESIDENTS (Use Form AR1000NR)
Part year residents who received any taxable income while an Arkansas resident must file a return (regardless of marital status, filing status, or amount).
WHEN TO FILE
You can file your calendar year original tax return any time after December 31, 2013, but NO LATER THAN April 15, 2014, (unless an extension has been granted).
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.
IF YOU NEED MORE TIME
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 October 15th.
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 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
P.O. Box 3628
Little Rock, AR 72203-3628
NOTE: The maximum extension that will be granted to an individual on an AR1055 is one hundred and eighty (180) days, extending the due date until October 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 extenstion 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, 2014 to avoid failure to pay penalty and interest.
Payments made on extension should be made on Form AR1000ES, Voucher 5.
EXEMPT FROM INCOME TAX
NOTE: List exempt income on AR4, Part III and include the total on AR1000F/AR1000NR, Line 51. (You do not need to list exclusion amounts from numbers 10-12.)
- Money you received from a life insurance
policy because of the death of
the person who was insured is exempt
NOTE: You must include as taxable income any interest payments made to you from the insurer (the insurance company that issued the policy).
- 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.
- Amounts you received as child support payments are exempt from tax.
- Gifts, inheritances, bequests, or devises are exempt from tax.
- Scholarships, grants, and fellowships are taxed pursuant to Internal Revenue Code §117. Stipends are taxed in their entirety. For additional information on scholarships, fellowships, and stipends see instructions for Line 20 on Page 15.
- 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. Obligations include bonds and other evidence of debt issued pursuant to a government unit's borrowing power. (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.
- Social Security benefits, VA benefits, Workers' Compensation, Unemployment Compensation, Railroad Retirement benefits and related supplemental benefits are exempt from tax.
- 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.
- Disability income MAY BE exempt from tax pursuant to Internal Revenue Code §104.
- The first $9,000 of U.S. Military Compensation is exempt from tax.
- 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. For tax years 2003 and later, 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. (If you received income from military retirement, you may adjust your figures if the payment included Survivor's Benefit Payments. The amount of adjustment must be listed on the income statement, and supporting documentation must be submitted with the return.)
- 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. 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: The total exemptions from all plans described under 11 and 12 cannot exceed $6,000 per taxpayer, not including recovery of cost.
Gambling winnings from Arkansas electronic games of skill are not included as income and the 3% withholding is excluded from Line 37. To determine if your gambling winnings are taxable, see instructions for Line 20, Page 15.
FILING AN AMENDED RETURN
If filing an amended return, check the box at the top right corner of Form AR1000F/ AR1000NR/ AR1000S. 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 90 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 Page 8.)
- 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
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 20 under "Your/Joint Income".
MARRIED COUPLES CHOOSING THE BEST FILING STATUS
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.
METHOD B. 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 Household)
To file as Head of Household you must have been unmarried or legally separated on December 31, 2013 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.
- 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.
- 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):
- Your unmarried child, grandchild, great- grandchild, adopted child or stepchild. This child did not have to be your dependent, but your foster child must have been your dependent.
- Your married child, grandchild, adopted child or stepchild. This child must have been your dependent.
- Any other person whom you could claim as a dependent.
MARRIED PERSONS WHO LIVED APART
Even if you were not divorced or legally separated in 2013, 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 [Qualifying Widow(er)]
Check this box if you are a QUALIFYING WIDOW(ER).
You are eligible to file as a QUALIFYING WIDOW(ER) if your spouse died in 2011 or 2012 and you meet each of the following tests:
- 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.
- You did not remarry before the end of 2013.
- You had a child, stepchild, adopted child, or foster child who qualified as your dependent for the year.
- 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.
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. The word "DECEASED" should appear after his/her name along with the date of death.
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 Qualifying Widow(er)?
On January 1, 2014, were you age 65 or over?
On December 31, 2013, were you deaf?
On December 31, 2013, 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 17 is eligible for an additional $26 (per taxpayer) tax credit. Check the box(es) marked "65 Special".
Add the number of boxes you checked on Line 7A. Write the total in the box provided. Multiply the number by $26 and write amount in space provided.
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 10. (Attach schedule if more than 3 dependents.)
Add the number of dependents listed on Line 7B. Write the total in the box provided. Multiply the number by $26 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 a certified 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 32.
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.
PART YEAR AND NONRESIDENTS
Complete Column A and Column B 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 36A, 36B, 36C, and 36D on Page 16.
PART YEAR RESIDENTS AND NONRESIDENTS MUST ATTACH A COPY OF YOUR FEDERAL RETURN, 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) and 1099-R(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 9A or 9B.
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 or C-EZ, 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).
LINE 9A. If you had U.S. Military Compensation, enter gross income in space provided. You are entitled to a $9,000 exemption from your gross income. The balance is taxable. Attach W-2(s).
Filing Status 2 (Married Filing Joint): If you and your spouse both had U.S. Military Compensation, enter your total gross income in the appropriate space provided on Line 9A. You and your spouse are each entitled to an exemption from your respective gross incomes.
Enter U.S. Military Retirement on Line 17A.
LINE 9B. (Filing Status 4 Only) If your spouse had U.S. Military Compensation, enter gross income in the space provided. Your spouse is entitled to a $9,000 exemption from his/her gross income. The balance is taxable. Attach W-2(s).
Enter U.S. Military Retirement on Line 17B.
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 (available at www.arkansas.gov/incometax) and a copy of service member's LES to verify Home of Record.
(For future tax purposes, your nonmilitary spouse must submit a new payroll withholding form, ARW- 4MS 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 or C-EZ, enter the total dollar amount(s) of net income (or loss) from your federal Schedule C or C-EZ. If you did not file a federal Schedule C or C-EZ, submit a similar schedule and enter the net income (or loss). If you filed a federal Schedule C or C-EZ, 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 20, 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.
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 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 4684 if applicable.
LINE 16. Use this line to report taxable lump-sum 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 30. If you received a distribution which does not qualify for the Lump-Sum Distribution Averaging Schedule (AR1000TD), list the total distribution received in 2013. (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 of premature distributions are tax exempt.
McFadden and Maples Claimants: If you received a 1099-R and a claim was filed on your behalf under McFadden v. Weiss or Maples v. Weiss your Arkansas basis (cost of contributions) may have been fully recovered for tax purposes. If your basis has been fully recovered, enter the amount from Box 1 of your 1099-R as the "Gross" and "Taxable Amount" on Line 17A or B.
LINE 17A. If you had income from an employment- related 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 1099-R(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 17A, Column A. Attach 1099-R(s).
FILING STATUS 2 (Married Filing Joint) ONLY: If you and your spouse both had income from a retirement plan and/or qualified traditional IRA distribution, enter the combined gross income amount from Box 1 of your 1099-R(s). Enter the combined federal taxable amount from Box 2a of your 1099-R(s). If Box 2a is blank, use the Simplified Method Worksheet in the federal 1040 Instruction Booklet to calculate the taxable amount of your distribution. Both you and your spouse are entitled to a $6,000 exemption from your respective taxable retirement plan income; the balance is taxable to Arkansas. Enter the balance on Line 17A. Attach 1099-R(s).
LINE 17B. FILING STATUS 4 (Married Filing Separately on the Same Return) ONLY: If your spouse had income from an employment related pension plan or a qualified traditional IRA distribution, enter the gross income from Box 1 of his or her 1099-R(s). Enter the federal taxable amount from Box 2a of his or her 1099-R(s). If Box 2a is blank, use the Simplified Method Worksheet in the federal 1040 Instruction Booklet to calculate the taxable amount of his or her distribution. Your spouse is entitled to a $6,000 exemption from the taxable amount; the balance is taxable to Arkansas. Enter the balance on Line 17B. Attach 1099-R(s).
You are eligible for the $6,000 exemption for retirement or disability benefits provided the distribution was from public or private employment-related retirement systems, plans, or programs. (The recipient need not 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.
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 18. 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 19. 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.
LINE 20. Enter type (federal/state depreciation differences, NOLs, foreign earned income exclusion or contest winnings) and amount of all taxable income for which no other place is provided on the return. (If necessary provide additional information on an attached statement.)
Gambling winnings of any type should be entered here, with the following exception: Gambling winnings from Arkansas electronic games of skill are not included as income and the 3% tax withheld is excluded from Line 37.
You must report reimbursement of medical expenses from a previous year if you itemized deductions in that year and it reduced your tax.
Include amounts recovered on bad debts that you deducted in an earlier year.
If you had a net operating loss (NOL) in an earlier year to carry forward to 2013, enter it as a negative amount on this line. Attach a statement showing how you calculated 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 stipends: A scholarship or fellowship is exempt from tax only if:
- You were a candidate for a degree at an educational institution, and
- The grant was a qualified scholarship or fellowship.
A qualified scholarship or fellowship is any amount you received as a scholarship or fellowship grant that was used under the terms of the grant for:
- Tuition and fees required for enrollment, or
- 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 21. Add Lines 8 through 20 and enter total in the appropriate columns on this line. This is your Total Income.
LINE 22. If you are claiming an adjustment from the list below, use Form AR1000ADJ and include the total on this line. Attach Form AR1000ADJ.
Border city exemption
Arkansas Tax Deferred Tuition Savings Program
Payments to IRA
Payments to MSA
Payments to HSA
Deduction for interest paid on student loans
Contributions to Intergenerational Trust
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
LINE 23. Subtract Line 22 from Line 21, Total Income. Enter amount on this line. This is your Adjusted Gross Income (AGI).
LINE 24. Enter the amount(s) from Line 23, Columns A and B.
LINE 25. SELECT THE PROPER TAX TABLE and check the appropriate box. You will be in one of the following categories:
- You qualify for the Low Income Tax Table, or
- You must use the Regular Tax Table
See tax tables and qualifications for each table on pages 26-30.
If you use an exclusion for 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 25, 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 25.
Itemized Deductions: To compute your itemized deductions, complete Form AR3. Make sure that your total itemized deductions exceed the Standard Deduction. (For Form AR3 instructions see pages 18-19 of this booklet.)
NOTE: If you are filing Status 4 or 5 and one spouse itemizes, then both spouses must itemize.
Standard Deduction: The Standard Deduction for your filing status is the amount shown below. (If the amount on Line 24 is less than the Standard Deduction, enter the amount from Line 24 on Line 25.)
|2 Married Filing Joint||$4,000|
|3 Head of Household||$2,000|
4 Married Filing Separately on Same Return
|5 Married Filing Separatelyon Different Returns||$2,000|
|6 Qualifying Widow(er)||$2,000|
NOTE: The $2,000 Standard Deduction does not apply to taxpayer's dependent(s).
LINE 26. Subtract Line 25 from Line 24. This is your Net Taxable Income.
LINE 27. Using the appropriate tax table locate the tax for your income and enter here.
LINE 28. Add Lines 27(A) and 27(B) and enter the total.
LINE 29. If you received a lump-sum (total) distribution from a qualified retirement plan during 2013, 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 30. 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 17 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 20 of Form AR1000F/AR1000NR (Other Income).
LINE 31. Add Lines 28 through 30 and enter the total.
LINE 32. Enter the total personal tax credits from Line 7D.
LINE 33. The Child Care Credit allowed is twenty percent (20%) of the amount allowed on your federal return. A copy of federal Form 2441, "Credit for Child and Dependent Care Expenses" must be attached to your Arkansas return. (If this credit is for Approved Early Childhood Credit, see instructions for Line 41.)
LINE 34. 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
Business Incentive Tax Credit(s)
LINE 35. Add Lines 32 through 34 and enter the total.
LINE 36. Subtract Line 35 from Line 31. This is your Net Tax. If Line 35 is greater than Line 31, enter zero (0).
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 90% of your net tax, a penalty of ten percent (10%) will be assessed. See instructions for Lines 50A and 50B for more information.
IF FILING A FULL YEAR RESIDENT RETURN, go to instructions for Line 37. The instructions for Line 36A through Line 36D apply only to nonresidents and part year residents.
NONRESIDENTS AND PART YEAR RESIDENTS ONLY, read the following instructions to determine your correct Arkansas tax liability. Attach a complete copy of your federal return.
LINE 36A. Enter adjusted gross income from Line 23, Column C.
LINE 36B. Enter total of Columns A and B from Line 23.
LINE 36C. Divide amount on Line 36A by amount on Line 36B to arrive at your Arkansas percentage of income. Enter percentage as a decimal rounded to six places.
Example: $2,500/$525,000 = 0.004762
$10,000/$60,000 = 0.166667
LINE 36D. Multiply amount on Line 36 by decimal on Line 36C for Arkansas apportioned tax liability.
LINE 37. Enter Arkansas tax withheld from your W-2(s)/1099-R(s). You have already paid this amount of tax during the year. If you have MORE THAN ONE W-2/1099-R, be sure to add the Arkansas income tax withheld from all W-2(s)/1099-R(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-R(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:
- Ask your employer for copies of your W-2(s). If you cannot obtain them from your employer you should
- Contact the Social Security Administration at (800) 772-1213. Only if you cannot obtain your W-2(s) from your employer or SSA you may
- 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, tax paid to another state or 3% tax withheld from winnings on electronic games of skill. Gambling winnings from Arkansas electronic games of skill are not included as income and the 3% tax withheld is excluded from Line 37.
DO NOT correct a W-2 yourself. Your employer must issue you a corrected W-2.
LINE 38. If you made an estimated declaration and paid estimated tax payments on 2013 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 2013 Declaration of Estimated Income Tax (includes January 15, 2014 installment and/or credit brought forward from 2012 tax return).
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.
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.
LINE 39. If you filed an Arkansas extension request and paid tax with your request, enter the amount paid.
LINE 40. 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 41. Enter the APPROVED early childhood credit (20% of the federal child care credit). 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 federal Form 2441 and Certification Form AR1000EC. Contact your child care facility for Form AR1000EC.
LINE 42. Add the amounts on Lines 37,38,39,40 and 41. This is your TOTAL PAYMENTS.
LINE 43. 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 44. Subtract Line 43 from Line 42. This is your ADJUSTED TOTAL PAYMENTS.
REFUND OR TAX DUE
LINE 45. If Line 44 is more than Line 36 on Form AR1000F or Line 36D on Form AR1000NR, you overpaid your tax. Write the difference here. If you want a refund only, skip Lines 46 and 47 and enter the amount of your refund on Line 48.
LINE 46. You can apply part or all of the tax you OVERPAID in 2013 to your tax in 2014. Enter the amount you would like to have carried forward. The overpayment will be applied directly to your 2014 estimated account. If you wish to apply only part of Line 45 to pay 2014 tax, you will be issued a refund for the balance of your overpayment.
NOTE: The amount you carry over to pay 2014 taxes will only be credited to the primary filer. It cannot be divided between the primary filer and spouse.
LINE 47. If you wish to contribute a portion or all of your overpayment to one or more of the programs listed below, complete Schedule AR1000- CO and enter total amount of your donation. Attach Schedule AR1000-CO after Form AR1000F/AR1000NR.
Area Agencies on Aging Program
Arkansas Disaster Relief Program
Arkansas Schools for the Blind and Deaf
Arkansas Tax Deferred Tuition Savings Program
Baby Sharon's Children's Catastrophic Illness Program
Military Family Relief Program
Newborn Umbilical Cord Blood Initiative
Organ Donor Awareness Education Program
U.S. Olympic Committee Program
LINE 48. Subtract Lines 46 and 47 from Line 45. This is the amount of your REFUND.
Get your refund faster with direct deposit. For direct deposit to your checking or savings account, check the box on line 48, then fill out Form ARDD and attach it as the third page of your return. Check your form carefully, since any error could prevent your bank from accepting your direct deposit. (If your refund cannot be direct deposited for any reason, you will receive a paper check.) See Form ARDD for additional information. You do not need to fill out Form ARDD if you are e-filing your return. Direct deposit is not available for amended returns.
The Director is allowed 90 days from the return due date or the date the return was filed, whichever occurs later, to refund an overpayment of tax without interest (Act 262 of 2005).
SET OFF REFUNDS
If you, your spouse, or former spouse owes a debt to one of the agencies below, all or part of your refund is subject to being withheld to satisfy the debt. You will receive a letter advising which agency has claimed your refund.
Any housing authority
Arkansas circuit, county, district, or city courts
AR colleges, universities, and technical institutes
Arkansas Public Defender Commission
Arkansas Real Estate Commission
County tax collectors or treasurers
Department of Finance and Administration
Department of Health
Department of Higher Education
Department of Human Services
Employee Benefits Division of DFA
Internal Revenue Service
Office of Child Support Enforcement
Office of Personnel Management of DFA
It is the agency's responsibility to refund any set off amount paid to the agency in error.
If you owe a debt for Arkansas income tax, your federal refund may be captured to satisfy your state income tax debt.
NOTICE TO MARRIED TAXPAYERS: If only one of the married taxpayers owes the debt, the taxpayer who is not liable can avoid having his/her refund applied to the debt if both taxpayers file Status 5, Married Filing Separately on Different Returns.
LINE 49. If Line 36 of Form AR1000F or Line 36D of Form AR1000NR is more than Line 44, you owe additional tax. Subtract Line 44 from Line 36 of Form AR1000F or Line 36D of Form AR1000NR. Enter amount here. This is the TAX YOU OWE.
LINE 50A and 50B. UNDERESTIMATE PENALTY: If required enter the exception number from Part 3 of the AR2210, or the computed penalty from Line 18 of AR2210 in the appropriate box. If you completed AR2210A, enter "6" in box 50A. Enter amount from Line 46 of AR2210A in box 50B.
Form AR2210 or AR2210A must be attached and the exception number entered in box 50A to claim any exclusion from the Underestimate Penalty.
LINE 50C. Add Lines 49 and 50B. Enter total on this line.
LINE 51. Enter the total amount from Form AR4, Part III in the space provided.
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.
Complete Form AR1000V (available at www. arkansas.gov/incometax) and attach a check or money order to your return. Write the tax year and your Social Security Number or account number on the check or money order, and make your check payable in U.S. Dollars to the Department of Finance and Administration. Mail on or before April 15, 2014. If the payment is for an amended return, mark the box yes on Form AR1000V for "Is Payment for an Amended Return".
Credit card payments may be made by calling 1-800-2PAY-TAXSM (1-800-272-9829), or by visiting www.officialpayments.com and clicking on the "Payment Center" link.
Credit card payments will be processed by Official Payments Corporation, a private credit card payment services provider. A convenience fee will be charged to your credit card for the use of this service. The State of Arkansas does not receive this fee. You will be informed of the exact amount of the fee before you complete your transaction. After you complete your transaction you will be given a confirmation number to keep with your records.
NOTE: Do not send currency or coin by mail.
PENALTIES & INTEREST
You must mail your tax return by April 15, 2014. Any return not postmarked by April 15, 2014 (unless you have an extension) will be delinquent. A penalty of one percent (1%) per month for failure to pay and five percent (5%) per month for failure to file, up to a maximum of thirty-five percent (35%), will be assessed on the amount of tax due on an original return. Interest of ten percent (10%) per year will also be assessed on any additional tax due, calculated from the original due date to the date you paid the tax due on an original or amended return.
An extension to file is not an extension to pay. If you have not paid the amount due by the original due date you will be subject to a failure to pay penalty of one percent (1%) per month of the unpaid balance.
In addition to any other penalties assessed, a penalty of $500 will be assessed, if any taxpayer files what purports to be a return, but the return does not contain information on which the correctness of the return may be judged, and such conduct is due to a position which is frivolous or an effort to delay or impede the administration of any State law.
Arkansas Tax Help links
- » Arkansas Form AR1000F
- » Arkansas Form AR1000ADJ
- » Arkansas Form AR1000D
- » Arkansas Form AR1000ES
- » Arkansas Form AR1000V
- » Arkansas Form AR1000-CO
- » Arkansas Form AR1075
- » Arkansas Form AR1800
- » Arkansas Form AR2210
- » Arkansas Form AR3
- » Arkansas Form AR4
- » Arkansas Form AR8453-OL
- » Additional Arkansas forms
- » Additional Arkansas State Income Tax Return Form, e-File, and Government Information
- » Access tax help for additional states