AR Additional Tax Credit for Qualified Individuals
The Arkansas Additional Tax Credit for Qualified Individuals is designed to provide tax relief to low-income taxpayers who timely file their state income tax returns. This credit is available to individuals with a net income of $27,600 or less.
Eligibility Criteria
- Must be an individual taxpayer.
- Net income must be $27,600 or less.
- Must timely file an Arkansas state income tax return.
Credit Amounts by Income Range
The credit amount decreases as income increases within the qualifying range. The credit is phased out completely for incomes above $27,600.
- $0 - $26,500: $60 credit
- $26,501 - $26,600: $55 credit
- $26,601 - $26,700: $50 credit
- $26,701 - $26,800: $45 credit
- $26,801 - $26,900: $40 credit
- $26,901 - $27,000: $35 credit
- $27,001 - $27,100: $30 credit
- $27,101 - $27,200: $25 credit
- $27,201 - $27,300: $20 credit
- $27,301 - $27,400: $15 credit
- $27,401 - $27,500: $10 credit
- $27,501 - $27,600: $5 credit
- $27,601 and above: $0 credit
How to Claim the Credit
Qualified individuals must complete the Additional Tax Credit for Qualified Individuals Worksheet (found in the AR1000F and AR1000NR instructions) to determine the applicable credit amount. The total credit is then entered on line 36 of Form AR1000 and must be attached to the return if claiming other credits via Form AR1000TC.
Important Notes
- The credit is only available for taxpayers who file their return on time.
- It is a non-refundable credit and reduces the tax liability dollar-for-dollar.
- It is not available for married filing separately on the same return unless income is allocated between columns A and B.
Source:
AR1000F and AR1000NR Instructions
Form AR1000TC Instructions
Disclaimer: Always verify information with official Federal or State Department of Revenue Forms and Instructions.