Tax Filing

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Governor Sanders signs an executive order to provide additional relief in regards to tax filing and payment deadlines in response to the May 24th storms in Arkansas

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TO ALL TO WHOM THESE PRESENTS COME – GREETINGS: 

E.O. 24-11: EXECUTIVE ORDER TO AMEND E.O. 24-09 AND PROVIDE ADDITIONAL RELIEF IN REGARD TO TAX FILING AND PAYMENT DEADLINES IN RESPONSE TO SEVERE STORMS ON OR ABOUT MAY 24, 2024. 

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WHEREAS: On or about May 24, 2024, and continuing, severe storms, flooding, and tornadoes began in Arkansas, causing danger, hardship, and suffering which now warrants this executive action; 

WHEREAS: On May 26, 2024, by Executive Order 24-07, a regional emergency was declared in the state as a result of the severe weather outbreak, pursuant to the Emergency Services Act, codified at Ark. Code Ann. §§ 12-75-101, et. seq; 

WHEREAS: Ark. Code Ann. § 26-18-505 authorizes the Secretary of the Department of Finance and Administration to grant a reasonable extension of time to file any return required under any state tax law upon written request for good cause shown. Good cause includes when any taxpayer is affected by a disaster emergency declared by the Governor; 

WHEREAS: Ark. Code Ann. § 12-75-114(e)(1) authorizes the Governor to suspend any regulatory statutes if compliance with those statutes would delay action in coping with the declared emergency; 

WHEREAS: On May 30, 2024, by Executive Order 24-09, relief was extended to affected citizens in Baxter, Benton, Boone, Carroll, Fulton, Grant, Greene, Madison, Marion, Nevada, Randolph, Sevier, and Sharp counties by extending certain tax payment deadlines; and 

WHEREAS: There is good cause for additional relief to be extended to Arkansans residing in Baxter, Benton, Boone, Carroll, Fulton, Grant, Greene, Madison, Marion, Nevada, Randolph, Sevier, and Sharp counties as a result of the ongoing emergency. 

NOW THEREFORE, I, SARAH HUCKABEE SANDERS, acting under the authority vested in me as Governor of the State of Arkansas and pursuant to Ark. Code Ann. §§ 12-75-101, et seq., issue this Executive Order pursuant to the regional emergency as declared in Executive Order 24-07, and order the following: 

1. The Secretary of the Department of Finance and Administration is hereby ordered to extend the 2023 income tax filing date and income tax payment date and 2023 pass-through entity tax filing date and pass-through entity tax payment date for returns that are due between May 24, 2024, and October 31, 2024, to November 1, 2024, for those citizens and businesses residing in Baxter, Benton, Boone, Carroll, Fulton, Grant, Greene, Madison, Marion, Nevada, Randolph, Sevier, and Sharp counties. This extension includes 2023 returns of Individuals, Subchapter S Corporations, Subchapter C Corporations, Pass-Through Entities, Fiduciaries and Estates, Partnerships, and Composite returns; 

2. Individuals and entities in Baxter, Benton, Boone, Carroll, Fulton, Grant, Greene, Madison, Marion, Nevada, Randolph, Sevier, and Sharp counties will have until November 1, 2024, to file income tax and pass-through entity returns and pay income and pass through entity taxes that were originally due between May 24, 2024, and October 31, 2024; 

3. This relief includes return and extension payments due between May 24, 2024, and October 31, 2024; 

4. The Secretary of the Department of Finance and Administration is hereby ordered to extend the deadline under Ark. Code Ann. § 26-51-913(a)(2) to make a quarterly estimated income tax payment from between May 24, 2024, and October 31, 2024, for those citizens and businesses located in Baxter, Benton, Boone, Carroll, Fulton, Grant, Greene, Madison, Marion, Nevada, Randolph, Sevier, and Sharp counties to November 1, 2024; 

5. The provisions of Ark. Code Ann. § 26-18-505(a)(1) requiring a written request for an extension to file an individual income tax return are hereby waived through November 1, 2024, for citizens who reside or whose businesses are located in Baxter, Benton, Boone, Carroll, Fulton, Grant, Greene, Madison, Marion, Nevada, Randolph, Sevier, and Sharp counties; 

6. The provisions of Ark. Code Ann. § 26-18-505(a)(3) limiting an extension for filing an individual income tax return to no more than 180 days is hereby waived through November 1, 2024, for citizens who reside or whose businesses are located in Baxter, Benton, Boone, Carroll, Fulton, Grant, Greene, Madison, Marion, Nevada, Randolph, Sevier, and Sharp counties; and 

7. The provisions of Ark. Code Ann. § 26-18-505(a)(4) requiring the promulgation of rules to waive the requirement for a written request for an extension are hereby waived through November 1, 2024. 

IN TESTIMONY WHEREOF, I have hereunto set my hand and caused the Great Seal of the State of Arkansas to be affixed on this 15th day of July, in the year of our Lord 2024.

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Extension financial expert offers filing tips for 2023 tax season

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By Rebekah Hall
U of A System Division of Agriculture

LITTLE ROCK — With the start of tax season on Jan. 29, the Internal Revenue Service has begun accepting and processing 2023 tax year returns. The standard deduction, which is adjusted annually for inflation, increased for tax year 2023 and will also increase for tax year 2024.

TAX TIPS — Laura Hendrix, extension associate professor of personal finance and consumer economics for the University of Arkansas System Division of Agriculture, said it's important for taxpayers to gather and organize necessary documents and information before filing for the 2023 tax year. (Division of Agriculture photo.) 

Laura Hendrix, extension associate professor of personal finance and consumer economics for the University of Arkansas System Division of Agriculture, said a taxpayer may choose to take the standard deduction or to itemize their deductions.

“There are several factors that can influence a taxpayer’s choice, including changes to their tax situation, any changes to the standard deduction amount and recent tax law changes,” Hendrix said. “Generally, most taxpayers use the option that gives them the lowest overall tax, and most people take the standard deduction, which changes each year for inflation.”

Hendrix said deductions are subtracted from a taxpayer’s income to determine adjusted gross income, or AGI, which is the amount on which an individual pays taxes.

“The more deductions you have, the lower your AGI and the less you will pay in taxes,” Hendrix said. “Deductions can reduce the amount of a taxpayer’s income before they calculate the tax they owe.”

Itemized deductions that taxpayers may claim include state and local income or sales tax, real estate and personal property taxes, home mortgage interest, personal casualty and theft losses from a federally declared disaster, gifts to a qualified charity and unreimbursed medical and dental expenses that exceed 7.5 percent of AGI.

Hendrix said the amount of one’s standard deduction depends on a taxpayer’s filing status, age, whether they are blind and whether the taxpayer is claimed as a dependent by someone else.

“Generally, if a taxpayer’s itemized deductions are larger than their standard deduction, it makes sense for them to itemize,” she said. “Taxpayers who choose to itemize deductions should read the instructions for Schedule A and complete Form 1040, Itemized Deductions.”

Standard deduction amounts for tax year 2023, filing in 2024:

  • For married couples filing jointly: $27,000, up $1,800 from 2022

  • For single taxpayers and married individuals filing separately: $13,850, up $900 from 2022

  • For heads of households: $20,800, up $1,400 from 2022

Standard deduction amounts for tax year 2024, filing in 2025:

  • For married couples filing jointly: $29,200, up $1,500 from 2023

  • For single taxpayers and married individuals filing separately: $14,600, up $750 from 2023

  • For heads of households: $21,900, up $1,100 from 2023

Preparation is key

The IRS expects more than 128 million individual tax returns to be filed by the April 15, 2024, tax deadline. Hendrix said it’s important for individuals and families to keep organized records for tax filing.

“It’s like getting all your ingredients ready before preparing a meal, though not as fun,” Hendrix said.

To do things “quickly and the right way,” Hendrix said taxpayers should have the following information ready before sitting down to file:

  • Social security numbers for yourself, your spouse and any dependents

  • Last year’s tax returns — federal and state

  • All of your W-2 forms if you were paid as an employee

  • All of your 1099 forms if you were paid, for example, as an independent contractor

  • Forms received from bank and investment accounts detailing interest earned, capital gains and losses and retirement account contributions

  • If you run your own business, a list of business expenses to see if they are deductible

  • Mortgage and property tax statements

  • Charitable contributions

  • Unreimbursed medical expenses

  • Education expenses

  • Child or dependent care expenses

Tax credits

Hendrix said the Earned Income Tax Credit is a refundable credit. “If you have worked and earned income under $59,187 in 2023, you may qualify,” she said. “Even if you know you won’t owe any taxes, you should still file for EITC. The credit will be sent to you as a refund.”

  • Child Tax Credit (CTC) and Additional Child Tax Credit (ACTC) are tax credits for filers with qualifying dependents. The Child Tax Credit is worth a maximum of $2,000 per qualifying child. Up to $1,600 is refundable as the Additional Child Tax Credit. CTC is applied to the tax bill, and ACTC is refundable. Children must be under the age of 17 and must have lived with the taxpayer for more than half the year.

  • Child and Dependent Care Credit: Tax filers may claim between 20 and 35 percent of care expenses, up to $3,000 for one qualifying individual or $6,000 for two or more qualifying individuals. Expenses paid for the care of a qualifying individual are eligible expenses if the primary reason for paying the expense is to assure the individual's well-being and protection. The percentage claim allowed (20-35 percent) is based on income, with lower-income filers receiving a higher percentage allowed for the credit.

The IRS Tax Assistant at  www.irs.gov/help/ita is an online tool and calculator that can help filers determine qualification and estimate amounts.

Filing resources

The IRS encourages taxpayers to file electronically with direct deposit, as this is the fastest and easiest way to receive a refund.

“Avoid advanced refund options offered by tax preparers that charge high fees,” Hendrix added.

IRS Free File

  • If your income is $79,000 or less, you qualify for a free federal tax return. Access free online tax preparation and filing at an IRS partner site through IRS Free File.

  • If your income is more than $79,000, you can access fillable forms to prepare your own return without assistance.

  • irs.gov/filing/free-file-do-your-federal-taxes-for-free

MyFreeTaxes

  • United Way provides MyFreeTaxes in partnership with the IRS’s Volunteer Income Tax Assistance (VITA) program to help filers prepare their tax returns on their own or have their return prepared for them for free. Consumers making less than $60,000 qualify for free tax prep.

  • myfreetaxes.com

In-person tax prep

Tax filing assistance for Military

  • MilTax e-filing software is free for service members, eligible family members and survivors.

  • mil/financial-legal/taxes/miltax-military-tax-services/

For more information, visit IRS.gov. For extension resources on personal finance, visit uaex.uada.edu/money.

To learn about extension programs in Arkansas, contact your local Cooperative Extension Service agent or visit www.uaex.uada.edu. Follow us on X and Instagram at @AR_Extension. To learn more about Division of Agriculture research, visit the Arkansas Agricultural Experiment Station website: https://aaes.uada.edu. Follow on X at @ArkAgResearch. To learn more about the Division of Agriculture, visit https://uada.edu/. Follow us on X at @AgInArk. 

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Tax filing season opens Jan. 23; extension offers tips for preparation, filing

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By Tracy Courage
U of A System Division of Agriculture

Tax seasons officially starts Jan. 23, when the Internal Revenue Service will begin accepting and processing 2022 tax year returns. For those who haven’t started preparations yet, now is the time to collect documents and understand the changes to tax credits and deductions that may affect their finances.

The IRS expects more than 168 million individual tax returns to be filed, with the majority of those coming before the April 18 tax deadline. People have three extra days to file this year, as April 15 is a Saturday and the Emancipation Day holiday is observed on April 17 in Washington, D.C.

“For tax year 2022, some tax credits that were expanded in 2021 will return to 2019 levels,” said Laura Hendrix, an accredited financial counselor and associate professor of personal finance with the University of Arkansas System Division of Agriculture. “This means that some tax filers could receive a smaller refund than last year.”

Hendrix offers these tips for preparing to file this year:

Be aware of changes for credits and deductions

For tax year 2022 some tax credits that were expanded in 2021 will return to 2019 levels. Changes include amounts for the Child Tax Credit (CTC), Earned Income Tax Credit (EITC) and Child and Dependent Care Credit.

  • Those who received $3,600 per dependent in 2021 for the Child Tax Credit will, if eligible, get $2,000 for the 2022 tax year.

  • For the Earned Income Tax Credit, eligible taxpayers with no children who received roughly $1,500 in 2021 will now get $500 in 2022.

  • The Child and Dependent Care Credit returns to a maximum of $2,100 in 2022 instead of $8,000 in 2021.

Unlike 2020 and 2021, there were no new stimulus payments for 2022 so taxpayers should not expect to get an additional payment in their 2023 tax refund.

During COVID, taxpayers were able to take up to a $600 charitable donation tax deduction on their tax returns. However, for tax year 2022, taxpayers who don’t itemize and who take the standard deduction, won’t be able to deduct their charitable contributions.

If you bought a new, qualified plug-in electric vehicle in 2022 or before, you may be eligible for a clean vehicle tax credit.

Get your refund fast

One of the fastest ways to get your refund is to file electronically and use direct deposit. The IRS discourages people submitting paper forms to avoid potential delays. Tax refunds can be deposited in up to three accounts, and Hendrix recommends people deposit some of their refunds into a savings account to build financial security. Use IRS form 8888 for direct deposit.

Filers should also avoid using advance refund loans, which often have high fees.

Save money by filing for free

Several organizations offer free assistance to filers who meet income and age criteria.

“Taking advantage of these services means you can keep more of your refund because you don’t have to pay a tax-preparation service,” Hendrix said.

 Some of these include the following:

VITA (Volunteer Income Tax Assistance):

AARP Foundation Tax-Aide:

MyFreeTaxes:

IRS Free File:

MilTax

Organize records for tax time

Whether you are doing your own taxes, using a paid tax preparation service, or using one of the free file options, you will need to gather the following information:

  • Birth dates and Social Security numbers for yourself, your spouse and dependents on the tax return.

  • Wage and earning statements (Form W-2, W-2G, 1099-R,1099-Misc) from all employers.

  • Interest and dividend statements from banks (Forms 1099).

  • Health Insurance Exemption Certificate, if received.

  • A copy of last year’s federal and state returns, if available.

  • Bank account routing and account numbers for direct.

  • Total paid for daycare provider and the daycare provider's tax identifying number such as their Social Security number or business Employer Identification Number.

  • Forms 1095-A, B and C, Health Coverage Statements.

  • Copies of income transcripts from IRS and state, if applicable.

  • If using a free or paid tax preparation service, you will need to show proof of identification, such as a driver’s license.

  • If married and filing jointly, both you and your spouse will need to sign the tax return.

For more information, visit IRSgov. For extension resources on personal finance, visit uaex.uada.edu/money. To learn more about extension programs in Arkansas, contact your local Cooperative Extension Service agent or visit www.uaex.uada.edu. Follow us on Twitter and Instagram at @AR_Extension. To learn more about Division of Agriculture research, visit the Arkansas Agricultural Experiment Station website: https://aaes.uada.edu/. Follow on Twitter at @ArkAgResearch. To learn more about the Division of Agriculture, visit https://uada.edu/. Follow us on Twitter at @AgInArk.