Arkansas state income tax
In Arkansas, the Office of Income tax Administration is the responsible body for supervising the functioning of the various income tax sections which issue tax forms and assist tax payers in preparing their returns, and process them. The filing requirements of individuals vary with their filing status, age and of course, their gross income.
Filing requirements:
- Full year residents: All single individuals under the age of 65 must file a return if their gross income for the taxable year was above or equal to $7,800, and for those above 65, the limit is $9,300. If you are head of a family, then your income tax threshold is $12,100, if you are below 65 years of age, and $13,000, if you are above 65.
- For married couples filing a joint return, the tax limit is $15,500, if both the spouses are below 65 years of age, $15,600 if one of them is above 65 and $16,200 if both of them are above 65. If filing separately, the filing threshold is $3,999 irrespective of your age.
- Widows and widowers with a dependent child are to file a return if their gross income was at least $15,500 if they are below 65 years of age, and $16,000, if above 65.
- All non-residents and part-year residents who received income from Arkansas sources are to file AR1000NR, irrespective of their gross income.
Forms for filing an Arkansas return: There are three forms used for filing an Arkansas return namely, AR1000, AR1000S and AR1000NR, of which Form AR1000S is the simplest of them all in terms of the ease of filling up, and it may be used in the following situations. If you were a full year resident of Arkansas; and are claiming only your individual credits and that of a child, if any; and you are not filing as married filing separate; and you didnt have an income other than those from wages, salaries, tips and motley income like awards, prizes winnings from gambling etc. For all other purposes, AR1000 is to be used by the full-year residents, while non-residents and part-year residents must use Form AR1000NR.
Date and mailing address for filing: The returns are to be filed on or before the 15th of April or the next business day if April 15 falls on a holiday, for those file according to the calendar year. For fiscal year returns, the due date is on the 15th of the 4th month after your fiscal year closes. If you have to pay tax, you may do it thru a check or money order payable to the Department of Finance and Administration, attaching it with the return. You should fill in your social security number, the tax year and the type of form that you are using. In case if you didnt receive a preaddressed envelope, you may as well post your return to one of the addresses given below.
For returns with refunds:
Arkansas State income Tax
P.O.Box 1000
Little Rock, AR 72203
For returns with tax due:
Arkansas State Income Tax
P.O.Box 2144
Little Rock, AR 72203
For returns with no tax due :
Arkansas State Income tax
P.O.Box 8026
Little Rock, AR 72203
Estimated tax: In Arkansas, the tax is paid as and when you earn or receive income. Before you receive your salary or wages, the tax is deducted from them. Other incomes like pensions are also subject to withholding of taxes. Generally, incomes like interest, dividends, alimony are not subjected to tax deduction. Estimated tax is the payment of tax imposed on income which are not subject to deduction and on income from which the necessary amount of tax is not withheld. You have to pay estimated tax only if you expect a tax balance of $1,000 and more.
Amended returns: If you failed to report any income or made claims for any deductions or credits that you are not qualified to, you must file an amended return. The from to be used for this purpose for full year residents, is Form AR1000A and for part-year and non-residents, Form AR1000ANR.An interest will be charged on amended returns which report a tax due amount.
Usually, in case of calculation errors, the department will correct them and in case if forms and schedules are missing, you will be contacted by the department for relevant information. In such case, you need not file an amended return.
Penalties and interests: penalties and interests will be imposed on unpaid tax from its due date to the date of payment. Interest will be charged at an annual rate of 10%, which is the same for underpayment of taxes. Failing to file a return on time fetches bigger penalties. If you have tax due and are filing late, you may have to pay a penalty of 5% of the tax amount owed monthly or for a portion of a month that you are late, and to a maximum of 35%.
Collection of taxes: The Individual Income Tax section generally will send a maximum of 3 notices denoting the amount you is due to pay as your income tax. In the event of the debt not being paid within 10 days of the receipt of the final notice, your account can be transferred to the collection section of the department to initiate collection activities. Before commencing any collection activities, you will be sent a follow up notice to the final notification and you may pay the tax along with any penalties and interests. Failing to do so, a tax lien will be filed by the collection section in your place of residence. In such a case, post judgment interest at an annual rate of 10% will get added on the liabilities which include penalties and interests, if any.
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