2018 What’s New
SPECIAL INFORMATION FOR TAX YEAR 2018
Additional Information Requested for e-File: The State of Arkansas will once again be requesting additional information this season as was the case in 2017 in an effort to continue combatting identity tax fraud and ensure that your hard-earned 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.
Military Retirement Exemption (Act 141 of 2017): Beginning with tax year 2018, retirement benefits received by a member of the uniformed services as defined in this Act are exempted from the income tax.
Arkansas Tax-Deferred Tuition Savings Program Amended: Acts 8 and 15 of the 2018 Second Extraordinary Session amended the Arkansas Tax-Deferred Tuition Savings Program pursuant to 26 U.S.C. 529 in response to the federal Tax Cuts and Jobs Act as in effect January 1, 2018. Distributions can now be used to pay qualified higher education expenses for elementary or secondary public, private or religious schools.
Unemployment Income Taxable (Act 141 of 2017): Beginning with tax year 2018, Unemployment Compensation received will no longer be exempt income and is subject to the income tax.
Tax Cuts and Jobs Act: Arkansas has not conformed to certain provisions in the Tax Cuts and Jobs Act (TCJA), P.L. 115-97 enacted in December of 2017.