"Enter the portion of the following items that you earned from Arkansas sources or while you were a resident of Arkansas."

[JLM5]

Arkansas AR1000NR line 13 is answered by TurboTax "Enter the portion of the following items that you earned from Arkansas sources or while you were a resident of Arkansas." For Business Income the Federal Total is significantly less that the gross sales our small business acquired during a weekend Arkansas craft fair.  The difference is the federal number is after all the business expense deductions.  How do I calculate the Arkansas portion as there are many deductions that are not as easy to determine Arkansas portion as miles, meals, etc.?

[KeshaH · Accepted solution]

You'll need to figure out how much of your net profit would be included in your Arkansas return. You can do this by apportioning part of your net profit to Arkansas. Since Arkansas uses a sales-only factor, your apportionment factor is calculated as:

Arkansas Sales/Everywhere Sales

For example, if your total sales for the year were $50,000 and $10,000 of those sales were from Arkansas sources, your apportionment factor would be $10,000/$50,000 = 20%.

Then you'd take that 20% and multiply it by your net profit to figure out how much you should include in that box.