AR Tax Filing Information

Residents must file if:

• Single and gross income is at least: $11,970
• Head of Household with 0 or 1 dependents and gross income is at least: $17,019
• Head of Household with 2 or more dependents and gross income is at least: $20,287
• Married Filing Joint with 0 or 1 dependents and gross income is at least: $20,187
• Married Filing Joint with 2 or more dependents and gross income is at least: $24,295
• Married Filing Separate and gross income is at least: $5,099

Part-year residents must file if they received any taxable income while a resident.

Nonresidents must file if they received any taxable income from Arkansas sources.

Gross income is all income other than income specifically described as exempt from tax (see below). Exception: The $6,000 exemption on retirement income and the exemption on military income are included in gross income.

• Income received under the Community Match Rural Physician Recruitment Program is exempt from income tax.
• Life insurance proceeds due to death (not including interest).
• Cost recovery of life insurance, endowment, and private annuity contracts.
• Child support.
• Gifts, inheritances, bequests, and devises.
• Scholarships, grants, and fellowships that are tax free pursuant to Internal Revenue Code section 117.
• Interest from U.S. government obligations.
• Interest from Arkansas state or local obligations.
• Social Security benefits.
• VA benefits.
• Workers’ compensation.
• Unemployment compensation.

• Railroad Retirement benefits and related supplemental benefits.
• Rental value of home or housing allowance paid to a duly ordained or licensed minister of a recognized church to the extent used to rent or provide a home for the minister.
• Disability income exempt under IRC section 104.
• U.S. military compensation.
• All of the service pay or allowance received by an active duty member of the armed services is exempt from Arkansas income tax. The gross amount of U.S. military compensation is entered on line 9A and is not included in wages reported on line 8. Military retirement does not qualify for this exemption but is eligible for the $6,000 retirement exemption on
  lines 17A and 17B.
• Nonresident military do not report to Arkansas their income or nonresident spouse’s income.

• The first $6,000 of income from employer-sponsored retirement plans and qualified IRAs.

A $350 tax credit is available to qualifying taxpayers on the taxpayer’s principal place of residence. The taxpayer must be an owner, a purchaser under a recorded contract to purchase, a holder of
a recorded life estate, or a person who has formed a revocable trust that owns the property. Taxpayers should contact the county assessor for information on the tax credit.

• Individual Return Due Date: April 15th
• Corporate Return Due Date: April 15th
• S-Corporation/Partnership/LLC: March 15th

Arkansas recognizes all valid federal extensions. If Form 4868 was timely filed, check the box on page 1 of the Arkansas return to receive an extension until October 15.

Arkansas has an annual franchise tax on business income. For LLCs, the tax is a minimum $150 annually. For corporations, the tax is 0.3% on business net income with a minimum of $150 or $300 depending on the type of business you are running. For more information, click the following link: https://www.sos.arkansas.gov/business-commercial-services-bcs/franchise-tax/franchise-tax-report-forms

S-Corporations. Arkansas recognizes the federal S-Corporation election and will be subject to a 0.3% franchise tax at the entity level each year. This tax is due May 1.