Arkansas Tuition Deduction
The Arkansas Tuition Deduction allows taxpayers to claim a portion of the tuition paid for themselves, their spouse, or their dependents attending a post-secondary educational institution. This deduction is available for study leading to an associate, undergraduate, or graduate degree.
Eligibility and Limitations
- The deduction is limited to the lesser of 50% of the actual tuition paid or 50% of the "weighted average tuition" for institutions with the same classification.
- The educational institution does not need to be located in Arkansas, but the deduction is based on Arkansas’s weighted average tuition rates.
- Only tuition payments qualify; other fees or expenses (e.g., books, room and board) are not included.
How to Claim the Deduction
To claim the deduction, taxpayers must complete Form AR1075, titled "Arkansas Individual Income Tax Deduction for Tuition Paid to Post-Secondary Educational Institutions."
- Enter the name(s) of the educational institution(s) on Line 1.
- Provide the taxpayer’s name, social security number, and relationship to the student.
- Include the student’s name and social security number if applicable.
Using Online Taxes (OLT) Software
When filing your Arkansas state tax return using Online Taxes (OLT) software:
- Go to the State section in your return.
- Select "Start or Revisit Arkansas State."
- Under the Deductions section, select "Yes" for "Deduction for Tuition Paid to Post-Secondary Educational Institutions."
- Follow on-screen instructions to complete Form AR1075.
Additional Notes
- Tuition savings programs established in other states may allow a deduction of up to $3,000 if not deducted on another state’s return.
- Qualified withdrawals from a tuition savings account (including those from other states) are exempt from Arkansas income tax for the designated beneficiary.
Source:
Form AR1075 - Arkansas Individual Income Tax Deduction for Tuition Paid to Post-Secondary Educational Institutions
Form AR1000ADJ - Adjustments Schedule Instructions
Disclaimer: Always verify details with official Federal or State Department of Revenue Forms and Instructions before filing.