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Category: Arkansas

Arkansas Military Filing Information

Should I file a Resident or Nonresident Return?

Military personnel: (Army, Navy, Marine, Air Force, Merchant Marine, and Coast Guard) who were residents of Arkansas upon entering military service remain residents of Arkansas for income tax purposes. Regardless of the period of absence or where you are stationed, if you were a resident of Arkansas when you entered the military, you remain a resident of Arkansas for tax purposes. In most cases, you do not change your state of residency if the only reason you are no longer residing there is because of military orders. If Arkansas is your Home of Record and you are stationed outside the State of Arkansas, you are still required to file an  AR1000F reporting all of your income, including U.S. Military Compensation. However, military compensation is exempt from Arkansas tax beginning in tax year 2014. (If you are stationed in Arkansas and your Home of Record is another state, Arkansas does not tax your U.S. Military Compensation.)


Nonresidents of Arkansas: Nonresident military personnel merely having a duty station within Arkansas (whose legal residence is not Arkansas) are not required to file an Arkansas income tax return unless they have earned income from Arkansas sources other than military pay (example: you had a part-time job while you were living in Arkansas on military orders). If they have earned income in Arkansas other than military pay, they are required to file a nonresident return. A married nonresident with income earned in Arkansas may file either a separate return claiming himself or herself only, or a joint return claiming the total allowable personal exemption.


Military Couples: A spouse who is not in the military generally has the same domicile as the military spouse unless proven otherwise. Because of this, if you are filing Married Filing Jointly, you would usually file a Resident return for the state that the military member is a resident of. If the member of the military is an Arkansas resident, you would generally file an Arkansas Resident Married Filing Joint return. If the member of the military is a nonresident of Arkansas you would generally file an Arkansas Nonresident Married Filing Joint return.


If you are filing Married Filing Separate returns, the military member would file a Married Filing Separate return for his or her resident state.


If the husband and wife are both in military service, each could be a resident of a different state under the Servicemember's Civil Relief Act. You would need to contact your respective states to determine how to file.


Is my military income taxable?

For tax year beginning January 1, 2014, service pay or allowance received by an active duty member of the armed forces is 100% exempt from income tax. Active Duty includes all members of the armed services, including the National Guard and Reserve Units.


When filing Married Filing Jointly, if you and your spouse both had U.S. Military Compensation, you are each entitled to an exemption from your respective gross incomes.


Military Spouse Residency Relief Act:  If requirements are met for the relief the military spouse should file Form AR-MS with his/her employer to exempt income from Arkansas withholding.


How to file with TaxSlayer:

To take the exclusion, from the Main Menu of your account click State Section > Edit (beside your AR return) > Subtractions From Income > Miscellaneous Subtractions, or Pension Exclusion. Enter your total military income in the field for US Military compensation. TaxSlayer will calculate the amount of your exemption. This will ensure that your military income gets properly reported on your return.