TaxEngine - Basic Instructions for Preparing and Filing Arkansas Tax Returns
In preparing the state tax return, most information will carry from the federal
return. The income and withholding will carry to the state from entries on the W-2.
Be sure the state information has been entered on the W-2 input screen. Other income
items will carry from the federal input according to the state designated.
If you have additional information to enter, click on the 'tax forms' button. Input
for all the state forms is available.
Cash Contributions
Arkansas allows a deductions for cash contributions even though the taxpayer does
not itemize on the federal return. Enter any charitable cash contributions made
during the year. If you itemize on the federal return the cash contribution amount
will carry automatically from the federal Schedule A.
Part-Year Resident
You are considered a part-year resident of Arkansas if, during 2007, you moved your
permanent home into or out of Arkansas. You must pay Arkansas income tax on income
you earned, received or accrued while living in Arkansas.
TaxEngine will automatically allocate the income based on the information entered
on the federal return. Be sure to enter the state information on the federal W-2
input form.
Nonresident
If you are a resident of another state and worked in Arkansas during 2007, you are
required to file a Arkansas income tax return and are required to pay Arkansas income
tax on salary wages and other employee compensation for work performed in Arkansas.
If you are a Arkansas resident but worked in another state, all of your income is
subject to tax, no matter where it is earned, except income earned from out-of-state
business activity.