topic Arkansas in State tax filing

Arkansas

taxing2020 — Fri, 06 Mar 2020 21:47:22 GMT

I believe the online free edition for Arkansas is NOT using the correct tax table based on total income. It is excluding non taxable Social Security income and only including the taxable portion from the Federal return and then choosing the "Low Income" tax table. Arkansas instructions state to include all income, even if it's not taxable in Arkansas. How do you let Turbo Tax know about this error?

Re: Arkansas

BillM223 — Fri, 06 Mar 2020 22:16:47 GMT

"Your total income from all sources (regardless of whether the income is taxable to Arkansas) must fall within the limits of the appropriate table based on your filing status." The Arkansas Instructions say this at the top of page 22.

However, the top of each table actually says "IF YOUR ADJUSTED GROSS INCOME IS", which is a different thing.

Please see Subject 500 by the Arkansas Department of Revenue. This repeats the "Your total gross income from all sources (regardless of whether the income is taxable to Arkansas)" and the "You may use the Low Income Tax Table if your adjusted gross income falls below the following amounts for your filing status:"

I have to assume that Arkansas actually didn't mean the "Your total income from all sources (regardless of whether the income is taxable to Arkansas" the way it sounds. Otherwise they would never have referred to "adjusted gross income" (which does not include nontaxable income).

Re: Arkansas

taxing2020 — Sat, 07 Mar 2020 16:36:01 GMT

I believe that it might be that the"adjusted gross income" used in that one section is a misprint and should read "total gross income" because on this page from the printed tax books.....

https://www.dfa.arkansas.gov/images/uploads/incomeTaxOffice/2019_TaxTables.pdf

it states..

2019 Low Income Tax Tables
QUALIFICATIONS:
1. Your total income from all sources (regardless of whether the income is taxable to Arkansas) must fall within the limits of the appropriate table based on your filing status

Also, at least two other tax software are using total income when calculating which tax table to use.

It would be nice if TurboTax got an updated written clarification from Arkansas on which is the correct answer.

Re: Arkansas

BillM223 — Sat, 07 Mar 2020 17:50:08 GMT

I am having trouble recreating the situation you described. I created a test with a large amount of excluded Social Security benefits and a low Arkansas taxable income, yet it used the regular tax table anyway, whereas by your description, it would have used the low income tax table.

This makes me wonder if there is something else going on in your return.

If you would, would you do the following:

***

I'm going to need your help to get more information. Please send me a diagnostic file which is a copy of your tax return that has all of your personal information removed. You can send one to us by following the directions below:

***Online Product***

Sign into your online account.
Locate the Tax Tools on the left hand side of the screen.
A Drop down will appear. Click on Share my file with agent.
This will generate a message that a diagnostic copy will be created. Click on OK, the tax file gets sanitized and transmitted to us.
Please provide the Token Number that was generated onto a response to this thread.

***Desktop Product***

Click into your return.
Click Online and select "Send Tax File to Agent".
This will generate a message that a diagnostic copy will be created. Click on OK, the tax file gets sanitized and transmitted to us.
Please provide the Token Number that was generated onto a response to this thread.