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IRC 1341 repayment credit -- but for state (Arkansas)?

In 2019 I partially repaid a bonus I received in 2017.  I am claiming the "Claim of Right" credit on my Federal Tax return per the process outlined here (not the deduction, the credit):

 

https://ttlc.intuit.com/community/taxes/discussion/what-is-the-irc-1341-repayment-credit-in-layman-s...

 

and here

 

Page 34:  https://www.irs.gov/pub/irs-pdf/p525.pdf

 

What I can piece together is what to do for my state taxes (Arkansas).  I can't find any reference on Arkansas websites to this situation and my Turbotax program (Mac premier, desktop) doesn't seem to be incorporating the credit (which I manually entered via Forms on my Federal Tax) into my Arkansas tax return.

 

What should I do?  Re-file my 2017 return and just lower my income for that year?  Something else? 

 

Thanks

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1 Best answer

Accepted Solutions
DavidD66
Expert Alumni

IRC 1341 repayment credit -- but for state (Arkansas)?

Arkansas does have a number of credits and adjustments, but they don' appear to have one for Claim of Right, nor do they have an "other" category.   I don't see any way to take a credit or a deduction on your 2019 Arkansas return.  I don't believe filing an amended return for 2018 will work, as you would not also be amending your federal return, and your federal AGI is used to determine your Arkansas taxable income.  

 

I suggest you contact the Arkansas Department of Finance at (501) 682-1100 and consult with them.

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3 Replies
DavidD66
Expert Alumni

IRC 1341 repayment credit -- but for state (Arkansas)?

Arkansas does have a number of credits and adjustments, but they don' appear to have one for Claim of Right, nor do they have an "other" category.   I don't see any way to take a credit or a deduction on your 2019 Arkansas return.  I don't believe filing an amended return for 2018 will work, as you would not also be amending your federal return, and your federal AGI is used to determine your Arkansas taxable income.  

 

I suggest you contact the Arkansas Department of Finance at (501) 682-1100 and consult with them.

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**Mark the post that answers your question by clicking on "Mark as Best Answer"

IRC 1341 repayment credit -- but for state (Arkansas)?

Ok, that's what I was thinking, but was hoping for a simpler solution (that doesn't involve calling a government agency!).

 

Thank you for your help! @DavidD66 

jockamo
New Member

IRC 1341 repayment credit -- but for state (Arkansas)?

DrizzleP...I'm having the same problem this year w/my AR taxes, did you ever get a resolution?  I' haven't been able to get through via phone to the state office .  Thanks in advance

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