Note: The best practice when entering multiple state tax information into TaxSlayer Pro is to first create the nonresident return(s) and finish with the resident return. This allows the income tax data from the nonresident state(s) to transfer to the resident return. In TaxSlayer Pro, when creating the resident return you are prompted to pull in other state tax info, and by selecting "Yes" this info is pulled in and the credit for taxes paid to another state is automatically calculated.
Arkansas residents may claim credit for individual income tax paid to another state. The income must be taxed by both jurisdictions. The credit is limited to the amount of tax calculated at Arkansas rates on the same income. Arkansas does not allow a credit for taxes paid to Mississippi for gambling income, as Mississippi imposes a separate tax on gambling that is not considered an income tax.
Before starting the Arkansas return, prepare the nonresident return(s). Once all nonresident returns are finished, create the Arkansas resident return. TaxSlayer Pro will prompt to import any other state tax information found. Selecting Yes at this prompt will automatically calculate the credit for taxes paid to the other state.
Otherwise, to view or adjust the credit for taxes paid to another state in the Arkansas individual tax return in TaxSlayer Pro, from the Arkansas Tax Return Menu select:
- Credits
- Other State Credit
Additional Information:
Arkansas State Tax Information
Arkansas DFA: Individual Tax Forms and Instructions
While TaxSlayer Pro strives to make the information and links contained on this page as timely and accurate as possible, TaxSlayer Pro makes no promise or guarantee about the timeliness, accuracy or completeness of the contents of this page. The information contained on this page is for general information and is not intended to be tax advice. The user is also encouraged to review the underlying state resources and publications.