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pog24
Level 1

State Tax incorrectly withheld

Moved from Arkansas to Florida in June 2019.  My husband's employer made the address change, but continued to list Arkansas as state of employment, so he was having state income tax withheld from his paycheck.  We did not notice until end of year.  What forms do I need to fill out to show that only income earned thru June 2019 should be taxed in the state of Arkansas? And how do I get back the overpayment in taxes?

1 Best answer

Accepted Solutions
KathrynG3
Expert Alumni

State Tax incorrectly withheld

It depends. You may end up with more tax liability than expected since there will be no credit for taxes paid for Florida.

 

From the 2019 Arkansas Tax Booklet:

NONRESIDENTS AND PART YEAR RESIDENTS Complete Column A (and Column B if using Filing Status 4) of the AR1000NR as if you were a full year resident.

 

List all of your income from all sources for the entire year in these two columns.

 

List in Column C the total combined income (for both spouses) earned while Arkansas residents and income derived from Arkansas sources.

 

The total tax must be computed on the income totals in Columns A and B. After all allowable tax credits have been subtracted from the total tax, prorate the remaining balance. See instructions for Lines 38A, 38B, 38C, and 38D on Page 14.

 

NONRESIDENTS AND PART YEAR RESIDENTS MUST ATTACH A COPY OF YOUR FEDERAL RETURN, OR YOUR ARKANSAS RETURN WILL NOT BE PROCESSED.

 

 

From page 14:

NONRESIDENTS AND PART YEAR RESIDENTS ONLY, read the following instructions to determine your correct Arkansas tax liability.

Attach a complete copy of your federal return.

LINE 38A. Enter adjusted gross income from Line 25, Column C.

LINE 38B. Enter total of Columns A and B from Line 25.

LINE 38C. Divide amount on Line 38A by amount on Line 38B to arrive at your Arkansas percentage of income.

Enter percentage as a decimal rounded to six places. Do not exceed 100%.

Example: $2,500/$525,000 = 0.004762 or $10,000/$60,000 = 0.166667

 

LINE 38D. Multiply amount on Line 38 by decimal on Line 38C for Arkansas apportioned tax liability.

 

For a general reference:

Filing a Joint Federal and Separate State Returns

 

@pog24

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5 Replies
KatrinaB48
Expert Alumni

State Tax incorrectly withheld

When you file your part-year resident return for the state of Arkansas you will list the date when you moved out of Arkansas. You will receive a refund for the excess state tax withheld based on your length of residency. Please view this TurboTax FAQ and for more information about filing a part-year resident state return.

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pog24
Level 1

State Tax incorrectly withheld

Thank you for that information.  I guess my next question would be on the Arkansas return, there is a column C for Arkansas Income Only.  When I use Turbo Tax, it fills in my husbands entire income for the year.  Should this not reflect just the income earned while in Arkansas?  

BillM223
Employee Tax Expert

State Tax incorrectly withheld

Are you filing married joint in Arkansas (status 2) or married filing separately (status 4) on the same return?

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pog24
Level 1

State Tax incorrectly withheld

Married filing separately on same form

KathrynG3
Expert Alumni

State Tax incorrectly withheld

It depends. You may end up with more tax liability than expected since there will be no credit for taxes paid for Florida.

 

From the 2019 Arkansas Tax Booklet:

NONRESIDENTS AND PART YEAR RESIDENTS Complete Column A (and Column B if using Filing Status 4) of the AR1000NR as if you were a full year resident.

 

List all of your income from all sources for the entire year in these two columns.

 

List in Column C the total combined income (for both spouses) earned while Arkansas residents and income derived from Arkansas sources.

 

The total tax must be computed on the income totals in Columns A and B. After all allowable tax credits have been subtracted from the total tax, prorate the remaining balance. See instructions for Lines 38A, 38B, 38C, and 38D on Page 14.

 

NONRESIDENTS AND PART YEAR RESIDENTS MUST ATTACH A COPY OF YOUR FEDERAL RETURN, OR YOUR ARKANSAS RETURN WILL NOT BE PROCESSED.

 

 

From page 14:

NONRESIDENTS AND PART YEAR RESIDENTS ONLY, read the following instructions to determine your correct Arkansas tax liability.

Attach a complete copy of your federal return.

LINE 38A. Enter adjusted gross income from Line 25, Column C.

LINE 38B. Enter total of Columns A and B from Line 25.

LINE 38C. Divide amount on Line 38A by amount on Line 38B to arrive at your Arkansas percentage of income.

Enter percentage as a decimal rounded to six places. Do not exceed 100%.

Example: $2,500/$525,000 = 0.004762 or $10,000/$60,000 = 0.166667

 

LINE 38D. Multiply amount on Line 38 by decimal on Line 38C for Arkansas apportioned tax liability.

 

For a general reference:

Filing a Joint Federal and Separate State Returns

 

@pog24

View solution in original post

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