The state of Arkansas has made the following tax law changes for tax year 2022:
- Tax Competitiveness and Relief - For 2022 Marginal Income Tax rates have been amended and the top rate reduced to 4.9%.
- Law Enforcement Family Relief Check-Off Program - Effective for tax years beginning on or after January 1, 2022, there is a check off for donations available to this program and trust fund.
- Pass-Through Entity Tax - A form AR-OI is needed to back out the income or losses reported on the Pass-through level if you are an entity, or member of an entity, that includes in Pass-Through Entity Tax on the individual return.
- Inflationary Relief Income - An additional tax credit for Arkansas residents that have net income up to $101,000.
- Additional Tax Credit for Qualified Individuals - An additional tax credit for an individual taxpayer with net income up to $24,700.
- Philanthropic Investment in Arkansas Kids Program Scholarship Credit - Act 904 of 2021 creates a tax credit for eligible contributions made to a scholarship-granting organization. The total amount of credits awarded per year cannot exceed $2 million.
- Section 179 - Arkansas has adopted the most recent Federal changes for purchases made in 2022.
- Retired Law Enforcement Cold Case Credit - A tax credit now available for retired law enforcement who work cold cases.
You can read more about the changes to Arkansas Tax Law here.