Arkansas Individual Income Tax Forms And Instructions Short Booklet Full Year Resident Only

F. INCOME EXEMPT FROM TAX

2. FULL YEAR RESIDENT

You are a FULL YEAR RESIDENT if you lived in Arkansas all of

Money you received from a life insurance policy because

tax year 2013, or if you have maintained a domicile or Home of

of death of the person who was insured is exempt from tax.

Record in Arkansas during the tax year.

NOTE: You must include as taxable income any interest payments

made to you from the insurance company that issued the

3. DEPENDENT

policy.

You may claim as a dependent any person who received over

Money you received from LIFE INSURANCE, an ENDOWMENT,

half of his or her support from you, earned less than $3,900 in

or a PRIVATE ANNUITY CONTRACT for which you paid the

gross income, and was your:

premiums is allowed cost recovery pursuant to Internal Revenue

Code §72.

Child

Stepchild

Mother

Father

Grandparent

Brother

Amounts you received as child support payments are exempt.

Sister

Grandchild

Stepbrother

Stepsister

Stepmother

Stepfather

You do not pay taxes on a gift, inheritance, bequest or

Mother-In-Law

Father-In-Law

Brother-In-Law

devise. Scholarships, grants, and fellowships are

Sister-In-Law

Son-In-Law

Daughter-In-Law

taxed pursuant to Internal Revenue Code §117. Sti-

pends are taxable in their entirety.

Or, if related by blood: Uncle, Aunt, Nephew, Niece

Interest you received from direct United States obligations, its

Or, an individual (other than your spouse) who was a mem-

possessions, the State of Arkansas, or any political subdivision

ber of your household for the entire year.

of the State of Arkansas is exempt from tax. Obligations include

bonds and other evidence of debt issued pursuant to a government

The term “dependent” includes a foster child if the child had

unit’s borrowing power. (Interest due on tax refunds is not exempt

as his principle place of abode the home of the taxpayer and was

income because it does not result from a debt issued by the United

a member of the taxpayer’s household for the taxpayer’s entire

States, the State of Arkansas, or any political subdivision of the

State of Arkansas.) Interest from government securities paid to

tax year.

individuals through a mutual fund is exempt from tax.

The term “dependent” does not apply to anyone who was a citi-

Social Security benefits, VA benefits, Worker’s Com-

zen or subject of a foreign country UNLESS that person was a

pensation, Unemployment Compensation, Railroad

resident of Mexico or Canada.

Retirement benefits, and related supplemental benefits

If your child/stepchild was under age 19 at the end of the

are exempt from tax.

year, the $3,900 gross income limitation does not apply. Your

Proceeds from a disability insurance policy for which you

child/stepchild may have had any amount of income and still be

your dependent if the other dependency requirements are met.

paid the premiums are exempt from tax pursuant to Internal

Revenue Code §104.

If your child/stepchild was a student, under age 24 at

the end of the calendar year, the $3,900 gross income limitation

If you received U.S. military compensation, a portion of your

does not apply. The other requirements in this section still must

gross income is exempt from tax.

be met.

If you received income from an employment related retirement

To qualify as a student, your child must have been a full-

plan, including disability retirement (premiums paid by your em-

time student for five (5) months during the calendar year at a

ployer), or if you received a qualified traditional IRA distribution, the

first $6,000, after cost recovery, is exempt from tax. The total

qualified school, as defined by the Internal Revenue Service.

exemption from all plans cannot exceed $6,000 per taxpayer.

A dependent who died during the year may be claimed

as a dependent for the entire year.

G. IF YOU NEED MORE TIME TO FILE

Arkansas has adopted Internal Revenue Code §151(c)(6) regard-

ing the tax treatment of kidnapped children.

A taxpayer who requests an extension of time to file his or her federal

income tax return (by filing Federal Form 4868 with the IRS) shall

4. GROSS INCOME

be entitled to receive the same extension on the taxpayer’s corre-

sponding Arkansas income tax return. In order to take advantage

Gross income is any and all income (before deductions) other

of the federal extension for state purposes, the taxpayer must check

than the kinds of income specifically described as exempt from

the box on the front of the Arkansas return indicating that the federal

tax in the following section “Income Exempt from Tax.”

extension has been filed.

Exception: The exemptions for military and retire-

The Department no longer requires that a copy of Federal

ment income as described in numbers 8 and 9 are includ-

Form 4868 be attached to the taxpayer’s state tax return

ed in gross income. However, if you use either of these

as long as the box is checked on the front of the return.

exemptions you may not use this form; you must file on Form

AR1000F/AR1000NR.

The federal automatic extension extends the deadline to file until

October 15

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Arkansas Individual Income Tax Forms And Instructions Short Booklet Full Year Resident Only - 2013 Page 9

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