Petit Jean State Park in Morrilton, AR. Photo courtesy of Arkansas Department of Parks, Heritage and Tourism https://www.arkansas.gov

Arkansas 2025 Individual Income Tax

Forms and Instructions

Full Year Resident....................................AR1000F

Nonresident..............................................AR1000NR

Part Year Resident....................................AR1000NR

Need help deciding which form to use?

Contact our office for assistance at (501) 682-1100 or

(800) 882-9275 or individual.income@dfa.arkansas.gov.

Need additional forms? Scan this:

Governor Sarah Huckabee Sanders

Tax Help and Forms Electronic Filing Identity Theft Special Information for 2025 If the IRS Audits You Information Exchange Programs with the IRS Preservation of Tax Records Request Copies of Arkansas Tax Returns Military Personnel

Form Inserts:

AR1000F

AR1000NR

AR3

AR4

AR1000ADJ

AR-OI

AR1000D

AR2441

AR1000TC

AR1000CO

Consumer Use Voter Registration

Instructions for Form AR3, Itemized Deduction Schedule ........................................... 17-18 Student Loan Interest Worksheet IRA Phase Out Chart Self-Employed Health Insurance Deduction Worksheet Mileage and Depletion Allowances Depreciation Information How to Fill Out Your Check Additional Tax Credit For Qualified Individuals Worksheet For Taxpayers’ Information Taxpayer Bill of Rights Low Income Tax Tables ............................................................................................... 24-25 Regular Tax Table ........................................................................................................ 26-30 Request For Copies of Arkansas Tax Returns and W-2(s) (Form AR4506) Index to Instructions Before Mailing Your Return Checklist .................................................................Back Cover

CONTENTS

TAX HELP AND FORMS

Internet

You can access the Department of Finance and Administration’s website at www.dfa.arkansas.gov.

You can e-mail questions to:

individual.income@dfa.arkansas.gov

Mail

Choose the appropriate address below to mail your return:

Be sure to apply sufficient postage or your return will not be delivered by the U.S. Postal Service. If you choose to use a carrier other than USPS, you MUST use the physical address located below.

Phone

Individual Income Tax Hotline.................................. (501) 682-1100 or (800) 882-9275

Representatives are available to assist callers at the numbers above during normal business hours (Monday through Friday from 8:00 a.m. to 5:00 p.m.) with:

For hearing impaired access, call (800) 285-1131 using a Text Telephone Device (for Spanish, call (866) 656-1842).

Other useful phone numbers:

Walk-In

Representatives are available to assist walk-in taxpayers with income tax questions, but are not available to prepare your return.

No appointment is necessary, but plan to arrive before 4:30 p.m. to allow sufficient time for assistance.

The Individual Income Tax Office is located at 1816 W. 7th Street Suite 2300, Little Rock, Arkansas 72201.

Office hours are Monday through Friday from 8:00 a.m. to 5:00 p.m.

ATAP

Arkansas Taxpayer Access Point (ATAP) allows taxpayers or their representatives to log on to a secure website and manage their account online. Please contact the ATAP helpline for registration requirement questions.

Access ATAP at www.atap.arkansas.gov to:

(Registration is not required to make payments, check refund status or view 1099-Gs.)

taxes/income-tax-administration/ individual-income-tax/

2. Visit your county revenue office

3. Visit your local library or

4. Call the Individual Income Tax Hotline

(501) 682-1100 or (800) 882-9275

ELECTRONIC FILING

www.arkansas.gov/efile

E-file is hassle-free both your federal and Arkansas income tax returns can be filed electronically in one transmission.

E-file is smart computer programs catch 98% of tax return errors.

E-file is worry-free receive acknowledgement within 2 to 3 business days if your return has been received and accepted.

Arkansas participates in the Federal/State Electronic Filing Program for Individual Income Tax. The program is available to most full year residents and certain qualifying nonresidents and part year residents.

Since Arkansas is a member of the “Free File Alliance,” depending on the level of income, taxpayers may qualify to file returns for free. (Go to www.arkansas.

gov/efile for details.)

The State of Arkansas is requesting additional information this filing season in an effort to combat identity tax fraud and ensure that your hard-earned tax refund goes to you. Providing information from your driver’s license or state-issued identification card will help protect your identity and could help process your return quicker.

However, this is only a request. Information from your driver’s license is not required, and your return will be processed without the additional information. The information is being requested solely to help protect your identity and ensure a more-secure refund.

In recent years, identity theft associated with income tax returns has become an increasingly severe problem.

Sometimes thieves steal a taxpayer’s Social Security Number and other private information then use this information to file tax returns and receive refunds that were not due to them.

If you believe your identity may have been used to file an Arkansas state tax return, these are the steps we suggest you take:

Contact us at (501) 682-1100 to report that your identity may have been stolen and request a hold on your account to stop all fraudulent refunds.

Contact the IRS Identity Protection Specialized Unit at (800) 908-4490 and inform them that your identity was stolen and may have been used to file a fraudulent tax return. You should complete IRS Form 14039, an identity theft affidavit, to support your claim.

Send a copy of the stamped IRS identity theft affidavit form to: Arkansas Individual Income Tax, PO Box 3628, Little Rock, AR 72203-3628

Contact the credit bureaus to ensure there have not been any other thefts related to your identity, and ask to have a fraud alert put on your credit report. The numbers for the credit bureaus are listed below:

● Equifax - (800) 525-6285 ● Experian - (888) 397-3742 ● Trans-Union - (800) 680-7289

IDENTITY THEFT

SPECIAL INFORMATION FOR TAX YEAR 2025

Changes to AR1000F and AR1000NR

Withholding will now be reported on separate lines. Line 39A will be where W-2 withholding is reported. Line 39B will be where 1099/K-1 withholding is reported.

Individual Income Tax Rate Reduction (Act 1 of the Second Extraordinary Session of 2024)

Marginal Income Tax rates for 2025 are 3.9%, as amended in 2024.

Pass-Through Entity Tax

If you are a member of an entity that participates in Pass-Through Entity Tax, include all income from the PET return on the individual return. Use the AR-OI form to back out the income or losses reported on the Pass-Through level. Do not include the amount of tax paid on your behalf as withholding.

Additional Tax Credit for Qualified Individuals (Act 1 of the Second Extraordinary Session of 2021)

Allows an individual taxpayer having a net income up to $27,600 who timely files a tax return, an additional tax credit.

DEVELOPMENTALLY DISABLED CREDIT (Act 191 of the General Session of 2023)

Eliminated the requirement for re-certification of a developmental disability that is expected to continue indefinitely. The form

AR1000RC5 has been changed to AR1000-DD. The only change to the form, other than the name, is where it can be claimed on your return. If claiming this credit, you are required to use the AR1000TC form, complete line 7, and enter the child(ren)’s name(s) and social security number(s) on the form (7A-7F- one child per line). If this is the first time you use this credit, attach the AR1000-DD and the AR1000TC to your return. If your AR1000RC5 was valid on January 1, 2022, you will not be required to submit the AR1000-DD. This credit is permanent and no longer requires a renewal every five (5) years; however, you must submit the AR1000TC yearly. The credit will follow the child (no matter who the caretaker is) and can only be claimed on one tax return per year.

Remote Work (Act 1019 of the General Session of 2021)

A nonresident who is paid a salary, lump sum payment, or any other form of payment for work inside and outside Arkansas is only taxed on the amount of income while physically located inside Arkansas. For remote workers who perform all of their du-ties from outside Arkansas, no income would be taxed. If duties performed are a combination of inside and outside Arkansas, only the portion that reasonably can be allocated to work performed in Arkansas is taxable.

Teacher and Retired Teacher Death Benefits (Act 171 of the General Session of 2023)

Among other issues addressed, Act 171 allows teacher and retired teacher death benefits from the Arkansas Teacher Retire-ment system to be distributed to multiple beneficiaries if requested or to the estate if no beneficiaries are named or survive to receive benefits. Such death benefits are exempt from Arkansas income taxes if a lump sum distribution.

PRESERVATION OF TAX RECORDS

A taxpayer who files an Arkansas income tax return is required to retain records to prove the accuracy of that return. The records must be retained for at least six (6) years (unless otherwise provided by law) and are subject to examination by the Director at any reasonable time during that period.

When a taxpayer fails to preserve and maintain the required records, the Director may make an estimated assessment based upon any available information as to the amount of tax due by the taxpayer. Per ACA 26-18-506, the burden of proof of refuting this estimated assessment is upon the taxpayer.

REQUEST FOR COPIES OF ARKANSAS TAX RETURNS

If your tax return was completed by a paid tax preparer, he/she should be able to provide a copy of the return. If you used a software product to prepare your tax return, you should be able to print a copy of the tax return from the software used.

Otherwise to request a copy of your Arkansas tax return, please complete and submit Form AR4506. Form AR4506 is included in this book and can also be downloaded from our website at: https://www.dfa.arkansas.gov/office/taxes/income-tax-administration/individual-income-tax/forms/

IF THE IRS AUDITS YOU

INFORMATION EXCHANGE PROGRAMS WITH THE IRS

Under authorization of Internal Revenue Code Section 6103(D) the State of Arkansas participates in several information exchange programs with the Internal Revenue Service:

CP2000: The IRS matches income reported on a taxpayer’s federal income tax return with documents (W-2s, 1099s, etc.) provided to the IRS by the payer to determine whether income was omitted from the taxpayer’s return. If unreported income is discovered, the IRS assesses additional federal tax on the omitted income then notifies the State of Arkansas.

The taxpayer’s state tax return is then reviewed for unreported income. (Some examples of commonly omitted income include wages, pensions, and cancellation of debt.)

Examination Operational Automation Database “EOAD”: When the IRS adjusts a taxpayer’s federal income tax return as the result of an audit, details are provided to the State of Arkansas. The taxpayer’s state tax return is then reviewed and adjusted if appropriate. (Some examples of EOAD adjustments include disallowance of deductions, expenses, or dependents and assessment of early withdrawal penalties.)

Non-filer Identification: The IRS provides the Arkansas Department of Finance and Administration with a list of taxpayers who filed federal returns using Arkansas addresses. This information is then compared with Arkansas income tax records to identify individuals who filed federal returns using Arkansas addresses but did not file Arkansas returns.

Letters are sent inquiring whether the taxpayer is required to file. The taxpayer should file the return in question or provide documentation why he/she is not required to file. If a sufficient response is not received, state tax is assessed using amounts reported on the taxpayer’s federal return, and the taxpayer is mailed a Notice of Proposed Assessment.

If the Internal Revenue Service examines your return for any tax year and changes your net taxable income, you must report the changes to the Arkansas Department of Finance and Administration within one hundred eighty (180) days from the receipt of the notice and demand for payment by the Internal Revenue Service.

File an Amended Individual Income Tax Return for the year(s) involved reporting the changes to your state return. Attach a copy of the federal changes.

If you fail to notify this Department within one hundred eighty (180) days and do not file the required amended return, the Statute of Limitations will remain open for three (3) years on the year(s) in question. Additional interest will be figured on any tax you owe the State of Arkansas.

MILITARY PERSONNEL

Active-Duty Military Under federal law, a military servicemember’s state of legal residence does not change solely as the result of the servicemem-ber’s assignment for service in another state. An Arkansas resident who enters into military service will remain an Arkansas resident unless they officially change their state of legal residence as described in DD Form 2058. Military servicemembers who are Arkansas residents are subject to the same income tax filing requirements as other Arkansas residents, even if they are serving in another state. These requirements are described under the heading “Who Must File A Tax Return”.

Military Pay Exemption (Act 1408 of 2013):

Provides a 100% exemption from income tax for service pay or allowance received by an active-duty member of the armed forces for tax years beginning on or after January 1, 2014. Active duty includes all armed forces members, including the National Guard and Reserve Units. You must file to claim the exemption.

Military Spouses Residency Relief Act:

Exempts a military spouse’s income from Arkansas tax if the servicemember’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. Please check the box on the tax return “Military Spouse” and attach a completed Form AR-MS (available at: https://www.dfa.arkansas.

gov/office/taxes/income-tax-administration/individual-income-tax/forms/) and a copy of the service member’s W-2 or Leave and Earning Statement (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”.

Military Retirement Exemption (Act 141 of 2017):

Beginning with tax year 2018, retirement benefits received by a member of the uniformed services as defined in this Act are exempted from income tax. Retirees cannot claim the $6,000 exemption for traditional or employer sponsored distributions if their military retirement exemption exceeds $6,000. If the military retirement exemption is less than $6,000, the remaining amount of the exemption may be taken for traditional or employee sponsored distributions. Please see instructions for lines 18A and 18B for details.

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 one hundred and eighty (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 two hundred and seventy (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.

GROSS INCOME

Gross income is all income (before deductions) other than income specifically described as exempt on pages 10 and 11.

Exception: The $6,000 exemption on retirement income, exemption on U.S. active-duty military income and military retirement as described on pages 10 and 11 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 2025, 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 2025.

MILITARY PERSONNEL

If Arkansas is your Home of Record and you are stationed outside of Arkansas, you are still required to file an AR1000F reporting all of your income, including U.S. active-duty military compensation. However, active-duty military compensation is exempt from Arkansas tax beginning in tax year 2014. (If you are stationed in Arkansas and your Home of Record is another state, Arkansas does not tax your U.S. active-duty military compensation.)

U.S. active-duty military compensation includes wages received by members of the Army, Navy, Air Force, Marine Corps, Coast Guard, National Guard, and Reserve Units.

DEPENDENTS

You may claim as a dependent any person who received over half of his or her support from you, earned less than $5,200 in gross income, and was your:

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 or her 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 $5,200 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 $5,200 gross income limitation does not apply. The other requirements in this section 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.

DEFINITIONS

NOTE: The maximum extension that will be granted to an individual on an AR1055-IT is two hundred and ten (210) days, extending the Arkansas due date until November 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 extension 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, 2026 to avoid failure to pay penalty and interest.

Payments made on extension should be made using the voucher attached to Form AR1055-IT.

See page 16 for information on penalties and interest.

EXEMPT FROM INCOME TAX

NOTE: List exempt income on AR4, Part III.

(You do not need to list exclusion amounts from numbers 11-13.)

1. Military Pension received as a member of the uniformed services.

2. Money you received from a life insurance policy because of the death of the person who was insured is exempt from tax.

NOTE: You must include as taxable income any interest payments made to you from the insurer (the insurance company that issued the policy).

3. 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.

4. Amounts you received as child support payments are exempt from tax.

5. Gifts, inheritances, bequests, or devises are exempt from tax.

6. Scholarships, fellowships, and grants are taxed pursuant to Internal Revenue Code §117.

(Stipends are fully taxable.) For additional information on scholarships, fellowships, and grants see instructions for line 22 on page 14.

7. 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. (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.

INSTRUCTIONS

THESE INSTRUCTIONS ARE FOR GUIDANCE ONLY AND DO NOT STATE THE COMPLETE LAW

WHO MUST FILE A TAX RETURN

WHEN TO FILE

You can file your calendar year original tax return any time after December 31, 2025, but NO LATER THAN April 15, 2026, (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 Arkansas deadline to file until November 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-IT 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:

Nonresidents who received any gross income from Arkansas sources must file a return (regardless of marital status, filing status, or amount).

NONRESIDENTS (Use Form AR1000NR)

Part year residents who received any gross income while an Arkansas resident must file a return (regardless of marital status, filing status, or amount).

PART YEAR RESIDENTS (Use Form AR1000NR)

FULL YEAR RESIDENTS (Use Form AR1000F)

Head of Household with 1 or no dependents $20,821

Head of Household with 2 or more dependents $24,819

Married Filing Separately $9,470

*Gross Income is all income (before deductions) other than income specifically described as exempt on pages 10 and 11.

Exception: The $6,000 exemption on retirement income, exemption on U.S.

active-duty military income, and military retirement as described on pages 10 and 11 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.

Remote workers must file if the employer reports Arkansas taxable income.

8. Social Security benefits, VA benefits, Workers’ Compensation, Railroad Retirement benefits and related supplemental benefits are exempt from tax.

Railroad Retirement Benefits exempt from income tax include tier I, tier II, vested dual benefits (VDB), and supplemental annuity payments reported on Form(s) RRB-1099-R and/or RRB-1099. Private pensions reported on Form 1099-R from railroad companies are not considered exempt Railroad Retirement Benefits.

9. 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.

10. Disability income MAY BE exempt from tax pursuant to Internal Revenue Code §104.

11. Beginning with tax year 2014, U.S. active-duty military compensation is exempt from tax. To claim the exemption, you must file a return and report all of the income you received during the year.

12. 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. 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.

13. If you received a traditional IRA distribution after reaching age 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: Total exemptions from all plans described under 12 and 13 cannot exceed $6,000 per taxpayer, not including recovery of cost.

14. Beginning with tax year 2017, income received by a taxpayer under the Community Match Rural Physician Recruitment Program is exempt from income tax.

15. Public Service Loan Forgiveness: Under current Arkansas law, the amounts discharged under the Public Service Loan Forgiveness (“PSLF”) program should be excluded from gross income but amounts discharged from other programs would be included in gross income for Arkansas income tax purposes.

FILING AN AMENDED RETURN

If filing an amended return, check the box at the top right corner of Form AR1000F/ AR1000NR. 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 one hundred eighty (180) 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 our website at www.dfa.arkansas.gov

• 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

1099-G

Arkansas no longer mails paper 1099- Gs. Instead, we ask that you get this information from our website at www.

atap.arkansas.gov. If you wish for us to mail you a paper 1099-G instead, please check the box located below address section on P1 of the AR1000F/AR1000NR.

Remote workers who file a non-resident return should check the box on P1 of the AR1000NR. If withholding is claimed, but no taxable income is claimed, a statement from the employer must be sent to verify that no work was completed inside the State of Arkansas.

Spouses of non-resident military members should check the Military Spouse box on P1 of the AR1000NR. The Form AR-MS and the military personnel’s W-2 or LES are required to be included with the AR1000NR.

FILING STATUS

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.)

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 23 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.

You must 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.

To file as Head of Household you must have been unmarried or legally separated on December 31, 2025, 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.

1. 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.

OR

2. 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):

a. Your unmarried child, grandchild, great-grandchild, adopted child or stepchild. This

INCOME

FULL YEAR RESIDENTS

If your filing status is Married Filing Separately on the Same Return, columns A and B must be used.

Write the primary’s income in column A and the spouse’s income in column B. For all other filing statuses, write all income in column A only.

NONRESIDENTS AND PART YEAR

RESIDENTS

Compete column A (and column B if using Filing Status 4) of the AR1000NR as if you were a full year resident. List all of your income from all sources for the entire year. (If Filing Status 4 is used, the primary’s income will be entered in column A, and the spouse’s income will be entered in column B.)

List in column C the total combined income (of both spouses) derived from Arkansas sources and/or received as Arkansas residents (no matter where the income was earned).

The total tax must be computed using the income totals in column(s) A (and B if filing Status 4). After all allowable tax credits have been subtracted from the total tax, prorate the remaining balance. See instructions for lines 38A, 38B, 38C, and 38D on page 15.

NONRESIDENTS AND PART YEAR

RESIDENTS MUST ATTACH A COPY OF

PAGES 1 AND 2 OF YOUR FEDERAL 1040.

THE ARKANSAS RETURN WILL NOT BE

PROCESSED WITHOUT IT.

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), W-2G(s), 1099-R(s), 1099PT(s), and 1099-G(s) to the left margin of P1 of your return. Failing to attach these forms may delay the processing of your 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 9.

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, 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 9. Service pay or allowance received by an active-duty member of the armed services is exempt from Arkansas income tax. If you or your spouse had U.S. active-duty military compensation, enter gross amount in the space provided. Do not enter an amount in column A. Attach W-2(s).

child did not have to be your dependent, but your foster child must have been your dependent.

b. Your married child, grandchild, adopted child or stepchild. This child must have been your dependent.

c. 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 2025, 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 are married and 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 [Surviving Spouse]

Check this box if you are a SURVIVING SPOUSE.

You are eligible to file as a SURVIVING SPOUSE if your spouse died in 2023 or 2024 and you meet each of the following tests:

1. 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.

2. You did not remarry before the end of 2025.

3. You had a child, stepchild, adopted child, or foster child who qualified as your dependent for the year.

4. 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.

DECEASED TAXPAYER

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. Check the box after the taxpayer’s name.

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:

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 18 is eligible for an additional $29 (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 $29 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 9.

(Attach schedule if more than six (6) dependents.)

Add the number of dependents listed on line 7B.

Write the total in the box provided. Multiply the number by $29 and write that amount in the space provided.

LINE 7C. Total the tax credits from lines 7A and 7B. Enter the total on this line and on line 34.

NOTE: The Developmentally Disabled Dependent Credit is now claimed on the AR1000TC form.

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 Arkansas 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 five (5) year period ending on the day of sale, be owned and used by the taxpayer(s) as the principal residence for periods aggregating two (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 AR4684 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 withdrawal amount 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 1 and Part II, on line 32. If you received a distribution which does not qualify for the Lump- Sum Distribution Averaging Schedule (AR1000TD), list the total distribution received in 2025. (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 on distributions are tax exempt. These amounts are reported in the total distribution box, attach your 1099-R or documents to show the amount deposited as a rollover.

NOTE: If you filed a claim under McFadden v Weiss or Maples v Weiss and your basis has been fully recovered, enter the amount from box 1 of your 1099- R(s) as the “Gross” and “Taxable Amount” on line 18A or 18B. Attach 1099-R(s).

LINE 17. Retirement benefits received by a member of the uniformed services are exempt from income tax. If you or your spouse had U.S. military pension compensation, enter gross amount in the applicable boxes provided for primary and spouse, regardless of filing status. Retirees cannot claim both the military retirement exemption and the $6,000 exemption for traditional IRA distributions (A.C.A 26-51-307(f)). Attach 1099-R(s).

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. Check the box for Military spouse and attach a completed Form AR-MS and a copy of the service member’s W-2 or Leave and Earning Statement (LES) to verify the 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.)

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 $1,500 or greater, 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 $1,500 or greater, 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, enter the total dollar amount(s) of net income (or loss) from your federal Schedule C. If you did not file a federal Schedule C, submit a similar schedule and enter the net income (or loss).

If you filed a federal Schedule C, 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 22, Other Income, any federal/ state depreciation differences. Attach AR-OI.

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.

If any of the above Pass-Through Entities elected to be taxed at the entity level, do not report their corresponding gains or losses on this return. Adjust the amount of gain or loss for any federal/state depreciation differences.

Arkansas did not adopt the federal “bonus depreciation” provision from previous years.

Therefore, there may be a difference in federal and Arkansas amounts of depreciation allowed. Adjust your gains and losses for depreciation difference, if any, in the federal and Arkansas amounts on lines 2, 5, and 10 of the Arkansas Form AR1000D.

PRIMARY EMPLOYER PENSION PLAN(S)/

QUALIFIED IRA(s):

LINE 18A. 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 18A, column A. Attach 1099-R(s).

LINE 18B.

If filing status 2, Married Filing Joint, spouse must enter the taxable amount on line 18B, column A.

If filing status 4, Married Filing Separately on the Same Return, spouse must enter the taxable amount on line 18B, column B. Attach 1099-R(s).

You might be 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 does not have to 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.

Mil i tary retirees cannot claim the $6,000 exemption for traditional or employer-sponsored distributions if their military retirement exemption exceeds $6,000. If the military retirement exemption is less than $6,000, the remaining amount of the exemption may be taken for traditional or employer-sponsored distributions.

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 19. 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.