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Arkansas
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Details:
• Tax Rates and Brackets. The highest tax rate on net income now begins at $32,600 (increased from $31,700 in 2008).
• IRC §121 and §134 as in effect on January 1, 2009 regarding the exclusion from income of qualified military benefits provided to members of the United States military. The adoption of these sections of the Internal Revenue Code includes the provisions of the Military Family Tax Relief Act of 2003 previously not adopted by Arkansas.
• IRC §165(h) and §165(i) as in effect on January 1, 2009 regarding losses arising from a casualty or disaster. For 2009 only the deductible amount is $500 per loss.
• IRC §108 and §1017 as in effect January 1, 2009 allows up to $2 million forgiveness of certain debt on taxpayer’s principal residence ($1 million for a married person filing a separate return).
• IRC §170 as in effect on January 1, 2009 allows taxpayers 70 1/2 and older who own IRAs to roll over any amount up to $100,000 to public charities. (There is no charitable deduction for the IRA rollover and the distribution is not included in the donor’s taxable income
• IRC §179 as in effect on January 1, 2009, allows greater dollar limits and phase out thresholds. The maximum deduction allowed for property placed in service during tax year 2009 is now $133,000. The deduction is decreased “dollar for dollar” for property over $530,000, and no deduction is allowed for property over $663,000. (See Page 22 for more information).
• Arkansas has not adopted provisions included in the American Recovery and Reinvestment Act of 2009.
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Government Link:
http://www.arkansas.gov/dfa/income_tax/documents/LongBooklet_2009.pdf
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TaxSimple Inc.
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