Most workers who earn income in Arkansas must file a state income tax return. The deadline for filing this return is April 15 or the next business day if it falls on a weekend or holiday. Free filing assistance is available to many taxpayers through VITA and AARP Tax-Aide sites. These programs are usually held at community locations throughout the state. Here are some options for filing your Arkansas state taxes for free:
Free File Program
The IRS offers a Free File program in partnership with private tax preparation companies. This program is available to taxpayers with an Adjusted Gross Income (AGI) of less than $60,000.
Here’s what you need to do:
- Visit the IRS website and choose a participating tax preparation company that best suits your needs.
- Each company may have its eligibility requirements and income limits, so review them carefully.
- Follow the instructions provided by the chosen company to complete and file your state and federal tax returns electronically.
Volunteer Tax Assistance Programs
Several volunteer programs offer free tax preparation assistance to eligible individuals, including:
- Volunteer Income Tax Assistance Program (VITA): This program provides free tax preparation services to low- to moderate-income individuals, seniors, and people with disabilities. You can find VITA locations by calling the IRS at 1-800-829-1040.
- Tax-Aide: AARP offers This program and provides free tax preparation assistance to low-income taxpayers, especially those aged 60 and older. You can find Tax-Aide locations by calling AARP at 1-888-227-7669.
Free File Alliance
The Free File Alliance allows you to file your Arkansas state taxes for free. It offers a simple interview process that transfers the information from your federal return to the Arkansas forms and schedules. You can also use the website to get an estimate of your Arkansas tax refund.
State income taxes are levied on a person’s annual gross earnings. Most states, including Arkansas, tax wage earners and those with investment and rental income. Individuals may also claim tax deductions and credits on their returns, such as a post-secondary tuition deduction or child care credit.
Nonresidents and part-year residents who receive any income in Arkansas must file a return, regardless of filing status or amount earned. Nonresidents pay a higher rate than those who live in the state.
The top state income tax rate is 5.9%. The state also collects sales taxes, which are charged at a rate of 6.5%. The Arkansas property tax is levied at 20% on the assessed value of a home or business.
Those with low to middle incomes may qualify for free state tax preparation and filing assistance. Volunteers with the VITA program help people prepare their basic income tax returns at various community locations throughout the state. The AARP Tax-Aide program serves older individuals and those with disabilities. Both programs operate at sites sponsored by local AARP chapters and the state Department of Revenue.
