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mj306
New Member

How do I fix Arkansas tax form for qualified retirement-related exemption on line 18? Inherited 2 IRAs from sibling. 18a and b show same amount.

Inherited 2 IRAs from sibling and have 1 small distro from previous employer. AR tax form lines 18a and b show the same amount.  18b should be $6,000 less.  Am over 65.    Boxes 1 and 2a are the same amount on 1099-Rs.  I selected "IRA with qualified distribution" for the IRAs and when I entered the 1099-Rs.  

AR tax form is 2023 AR1000F full year resident individual return.  Married filing separate on same return (better refund).  Fed is MFJ.

Could checking the AR tax credit for 65 and 65 special AR form 7A be the problem? Internet search came up with this solution for Tax slayer software.   https://support.taxslayer.com/hc/en-us/articles/360028254491-Is-my-retirement-income-taxable-to-Arka...

AR form instructions seem to indicate that I can take the $6,000 credit.
https://www.dfa.arkansas.gov/images/uploads/incomeTaxOffice/2023_AR1000F_and_AR1000NR_Instructions.p...

Thank you for any help you can give me.
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1 Reply
mj306
New Member

How do I fix Arkansas tax form for qualified retirement-related exemption on line 18? Inherited 2 IRAs from sibling. 18a and b show same amount.

Update. Resolved. I reviewed the 1099-R input pages and discovered I had incorrectly clicked “yes” for taking the 65 special credit. Apparently, Arkansas allows either the 65 Special Exemption Credit or excluding the first $6,000 of retirement income from Arkansas tax but not both. I changed it to “no” and the form now shows the correct amount in Box 18 and the refund amount increased.

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