Most Arkansas taxpayers will be required to file a state return, but some may be exempted from doing so if they do not meet the filing requirements. These requirements are based on your age, filing status, and total income. Be sure to check these qualifications to see if you are obligated to file a return before beginning the process.c Typically, Arkansas tax returns are due April 15, but because that date falls on a legal holiday in 2011, the deadline has been extended to April 18, 2011.c 

Earned income of any kind is taxable in Arkansas, but some forms of unearned income are not. Social Security benefits and worker's compensation benefits are exempt from taxation. Arkansas is also one of the few states that does not tax unemployment benefits. A full list of taxable income sources can be found in the tax form instruction booklet.c

Before beginning your Arkansas state tax return, collect all of the information you will need to complete the forms. This will save you from having to find necessary documents later on. You'll need:

1. Your Social Security number
2. Your current mailing address
3. The full name and Social Security number of your spouse, if you will be filing jointly
4. The full names of any dependents you will be claiming
5. Your earned income received - If you are employed, this will be reported to you on Form W-2 or Form 1099 as total state taxable wages. If you work for yourself, you'll need to add up your gross earnings and then deduct your eligible business expenses.
6. The unearned income you received that is subject to Arkansas state tax - Examples of this include lottery winnings, bank interest, and capital gains.
7. Your total state income taxes paid during the year - Employees will see this on Form W-2 as state taxes withheld. Self-employed taxpayers should use the total of their estimated state taxes paid.
8. A copy of your completed federal income tax return, if you are filing onec   

Unlike most state returns, the Arkansas state tax form does not base its calculations on the amount of your federal adjusted gross income. But the income received is separated by type exactly as on the federal tax return, so it will be helpful to have your federal form nearby for easy reference.c

The next step to preparing your Arkansas tax form is to get a copy of the return. If you plan to electronically file, you will not need a hard copy of the tax form. E-filing allows you to prepare and submit your return directly on your computer. It is then submitted online for the fastest processing. If you will be receiving a refund, you may be able to get it six weeks sooner by e-filing.c  

A list of approved e-file providers is available on the Arkansas Department of Finance and Administration website. Some of the programs even allow you to e-file for free if you meet certain requirements. If you will be preparing your federal tax form using tax software or a tax preparation website, you will usually be given the option to include your state return for an additional fee. To file your return using any of these methods, simply follow the program instructions using the information you collected above.c  

If you will be filing by mail, you can download Form AR-1000 "Arkansas Individual Income Tax Return" and the complete tax form instruction booklet from the state website. If you do not have Internet access, you can typically obtain these at your local library.c  

Begin the form by entering your full name and Social Security number as well as your spouse's, if applicable. Write in your current mailing address, select your filing status, and enter the names of your eligible dependents.c 

At this point in the form, take some time to read the tax instruction booklet carefully. The booklet will explain if you need to make any income adjustments or if you will be able to claim any eligible state tax credits. If any part of the return seems confusing, you can always check the instruction booklet for a full explanation.c  

On lines 8 through 21 of the Arkansas return, enter the income you received from each listed source. Be sure to keep your completed IRS Form 1040 nearby so that you report the same information on each form. Include any federal schedules as needed. Make any necessary income adjustments on lines 23 through 26 to arrive at your state adjusted gross income on line 27.c  

Subtract the amount of your standard or itemized deductions from your adjusted gross income to calculate your taxable income on line 30. Consult the tax table in the instruction booklet to assess your state tax owed and enter the amount listed on line 31. Write in any additional taxes you are subject to on lines 32 through 34.c   

Deduct any state tax credits you are eligible to claim and then subtract your state income taxes already paid through withholding or estimated state tax payments. What remains afterward will be either an additional balance due or a refund. Sign and date the form and have your spouse do the same, if necessary. Make a copy of the finished return for your records.c   

If you have an additional balance due, make out a check or money order for your total owed. Send the completed form, as well as any payment necessary, to the address listed on the return. Be sure to submit it by April 18, 2011.c 

Occasionally, circumstances may make it impossible to file your return by the deadline. If you're in this situation, you'll need to learn how to get a state tax return in Arkansas.