When choosing to file separately on the Arkansas return, you have two choices for your filing status if you wish to file Married Filing Separately. The distinction between Married Filing Separately (MFS) and Married Filing Separately on the Same Return primarily relates to how spouses report their incomes and deductions:
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Married Filing Separately (MFS): Each spouse files their own tax return, reporting only their individual income, deductions, and credits. This option is typically used when one spouse prefers to keep their finances separate or when filing jointly would lead to a higher tax liability.
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Married Filing Separately on the Same Return: This option allows spouses to report their income separately but submit their tax information on a single return. While the incomes and tax liabilities are treated independently, this filing method simplifies the process of filing separate returns. It is particularly useful when both spouses are Arkansas residents but wish to separate their financial information while minimizing the paperwork involved.
For more details on these filing statuses, you can refer to page 11 of the Arkansas Instructions.
- To use the "Married Filing Separately on the Same Return" option in the program, select this choice under “Select the desired Filing Status option for your joint return.” When you choose this method, the result will be either a COMBINED REFUND or a COMBINED TAX DUE.
- If you select “Change Filing Status from MFJ to MFS for State purposes only,” you are indicating a preference to file separate individual tax returns. Each return will have its own refund or amount due. It’s important to note that any tax due must be paid with the respective return, and refunds will be issued separately. YOU MAY NOT OFFSET ONE AGAINST ANOTHER.