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2017 What’s New

SPECIAL INFORMATION FOR TAX YEAR 2017

Additional Information Requested for e-File: The State of Arkansas is requesting additional information this filing season in an effort to combat identity tax fraud and ensure that your hard-earned tax refund goes to you. Providing information from your driver’s license or state-issued identification card will help protect your identity and could help process your return quicker. However, this is only a request. Information from your driver’s license is not required, and your return will be processed without the additional information. The information is being requested solely to help protect your identity and ensure a more-secure refund.

Capital Gains Exemption (Act 1173 of 2015): For tax year 2017, the exemption for net capital gains is 50% for the entire year.

Teacher Classroom Investment Deduction (Act 666 of 2017): Beginning with tax year 2017, a deduction is allowed for a qualified classroom investment expense by a teacher as defined in this Act. The deduction is limited to $250 per taxpayer or $500 for married filing jointly if each taxpayer is a teacher.

Community Match Rural Physician Recruitment Program Incentives (Act 763 of 2017): Beginning with tax year 2017, income received by a taxpayer under the Community Match Rural Physician Recruitment Program is exempt from income tax.

Tuition Savings Account Deduction Carry-forwards (Act 481 of 2017): Beginning on August 1, 2017, if total contributions to the Tax-Deferred Tuition Savings Program exceeds $5,000 per taxpayer in any tax year then the amount over the limit of $5,000 may be carried forward to the next succeeding four (4) tax years.

Non-Arkansas Tuition Savings Programs (Act 883 of 2017): Beginning with tax year 2017, a deduction of up to $3,000 is allowed for contributions to a Tax-Deferred Tuition Savings Program established by another state under 26 U.S.C. § 529 if the amount is not deducted in the other state or on the other state’s income taxes.

Income Tax Technical Corrections Act (Act 155 of 2017): Adopted the Internal Revenue Code (IRC) in effect as of January 1, 2017 for the following sections of the IRC: 529, 664, 117, 108, 1017, 105, 132, 1361, 267, 351, 354-358, 361, 362, 367, 368, 72, 219, 402-404, 406-416, 457, 163, 170, 167, 168(a)-(j), 851 et seq., 80a-1 et seq., and 1202. Provisions concerning Child Support Payments and Gambling Losses were clarified.