Arkansas State Tax Deductions - 2012, 2013

2013 Arkansas Income Tax Deductions

	Arkansas Standard Deduction
	Arkansas Personal Exemption
	Arkansas Dependent Deduction

Arkansas income tax deductions are above-the-line expenses that can be deducted from your gross income before you calculate your taxable income.

By carefully choosing your deductions in order to minimize your taxable income, you can ensure that you get the largest possible refund when you file your Arkansas and Federal income taxes.

Arkansas supports many of the same deductions as the IRS does for your federal income tax return. You may be able to reuse many of your Federal income tax deductions, including any itemized deductions from your Federal 1040 Schedule A.

Arkansas may have different rules or cut-offs for certain deductions, so you should still double check to ensure that your deductions are permitted under Arkansas tax law. For more information about the Arkansas income tax, see the main Arkansas income tax page.

Arkansas Income Tax Deductions Table
$2,000.00	$4,000.00	Arkansas Standard Deduction The Arkansas standard deduction is $2,000.00 for individuals and $4,000.00 for married couples filing jointly. The standard deduction may be chosen instead of filing an itemized deduction on your Arkansas tax return. You should only file an itemized deduction you have enough qualified expenses to receive a larger income tax deduction.
$23.00	$23.00	Arkansas Personal Exemption Arkansas' personal income tax exemptions include a personal exemption of $23.00 for single individuals and $23.00 for couples filing jointly. You can deduct one single exemption from your gross income if you are responsible for supporting yourself financially. You may not, however, claim a personal exemption if someone else has declared you as a dependent on their tax return.
		Arkansas Dependent Deduction Unlike most states, Arkansas does not have a dependent deduction. You can, however, claim dependent deductions on your Federal Tax Return.
		Arkansas Itemized Deductions Arkansas closely follows Federal rules regarding itemized deductions, so you should be able to reuse your Federal itemization with your Arkansas income tax return. Arkansas may still have state-specific rules for certain deductions, so be sure to double-check your itemization before you file. A variety of expenses can be itemized as deductions on your Arkansas tax return. Here's a list of some of the most popular itemized deductions. Business Deductions - Qualifying business expenses, business losses, and losses due to theft or depreciation may be itemized and deducted. Education and Tuition Deduction - If you paid tuition to an accredited college or university, you can deduct some or all of the tuition and fees you paid. You cannot deduct housing, food, or other secondary expenses, but you may deduct interest accrued on student loans. Property Tax Deduction - Many states allow you to deduct any property tax paid to a county or municipality from your gross income. Medical Deductions - You can deduct up to 7.5% of your out-of-pocket medical and dental expenses. Self employed individuals may also deduct premiums for qualifying health insurance plans. Self-Employment Deductions - If you pay both the employee and the employer's half of the payroll tax, you may deduct the employer's half from your gross income. This deduction generally applies to individuals who are self-employed or small business owners. Mortgage Interest Deduction - If you have a mortgage on a first or second home, you may deduct mortgage interest paid as defined in 26 U.S.C. § 163(h). IRA Contribution Deduction - You can deduct a limited contribution to your qualifying Individual Retirement Account every year. The deduction limits for 2012 are $5,000 per year for individuals under 50, and $6,000 per year for individuals 50 or over. Charitable Donations - Donations to qualifying charities or nonprofit organizations are 100% tax deductible, up to 50% of your gross income.

Visit the Arkansas income tax page for details on Arkansas' income tax. If you would like to learn about the income tax in other states, visit our listing of income taxes by state.

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