AR Form 1000/1000NR

Filing Status:

The Arkansas filing status is calculated based on federal.  If the federal filing status is Joint, Crosslink will optimize the Arkansas filing status between 'Joint' and 'Separate on Same Return' based on the amount of Spouse income.  If Spouse income exceeds the standard deduction plus the exemption amount, Arkansas filing status will be 'Separate on Same Return'.  An override field (AR019100/AR049500) is available in the filing status section of the form.  The filing status may only be overridden when Federal filing status is Joint.

Residency:

Part-year resident. You are a part-year resident if you were an Arkansas resident for less than 12 months during the tax year.  As a part-year resident (or nonresident), you should file Form AR1000NR.

The following worksheets are available on the AR forms and schedules:

AR1000/1000NR:

- Credit for Taxes Paid to Other States

- Individual Retirement Account

- Self-Employed Health Insurance

- Employer Sponsored Pension Plan

- US Military Officer Wages Exemption

- US Military Enlisted Wages Exemption

- Student Loan Interest Deduction

- Mortgage Insurance Premiums

Schedule AR3, Itemized Deductions:

- Contribution AGI Limitation

Estimated Tax:

Arkansas estimated tax will be computed based on a protective estimate.  The estimated tax can be adjusted as necessary by making entries directly on the estimate worksheet.

Estimated Tax Penalty:

To calculate an underpayment of estimated tax, Form AR-2210 must be added.  Crosslink doesn't automatically calculate the penalty.

Line 9A: U.S. Military Officer Wages Exemption

Military Officer wages exemption is calculated by making an entry of 'M' on Federal Form W-2, 'State Use Wage Type' field.  This field is located next to Box 17, State Tax Withheld. Military Pay Exemption (Act 1408 of 2013) creates a 100% exemption from income tax for service pay or allowance by an active duty member of the armed forces for tax years beginning on or after January 1, 2014.

Line 17A:  Pension Income Exclusion

The Arkansas Pension Income Exclusion is calculated based on the taxpayer attaining age 59 1/2 by the end of the tax year.  If a Military pension qualifies for the exclusion prior to age 59 1/2, the exclusion is calculated by making an entry of 'M' on Federal Form 1099R, Status Use field (US048240, next to State W/H).

Note: For Nonresident Form AR1000NR, the state abbreviation (AR) must be entered in field US040246.

AR Form AR-OI 

Additional examples of what must be reported on Other Income/Loss

-         Reimbursement of medical expenses from a previous year. If you itemized in that year and it reduced your tax.

-         Amounts recovered by bad debits