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Sanders on Sept. 14 further reduces the state's top income tax rate from 4.7% to 4.4%, (This rate was previously reduced from 4.9% in April 2023.) The new 4.4% tax rate won't take effect until 2024, so taxpayers whose incomes fall into the top bracket are subject to the previously reduced rate of 4.7% for 2023.
Included in the sale are clothing and footwear less than $100, clothing accessories and equipment less than $50, and most school supplies and electronic devices used to study. Cosmetics and jewelry are on the list. Online orders count, but they have to be shipped to an Arkansas address.
The temporary income tax credit is called "an inflationary relief income tax credit" in Act 6. Taxpayers will claim the up to $150 income tax credit when they file in 2024 for tax year 2023 and filing should begin in late January, said Scott Hardin, a spokesman for the state Department of Finance and Administration.
The Additional Child Tax Credit allows you to receive up to $1,500 of the $2,000 CTC per child as a refund for 2023.
In addition, it provides a one-time non-refundable income tax credit of $150 to taxpayers making less than $89,600 a year. Married couples filing jointly with an income of less than $179,200 a year will receive a $300 non-refundable tax credit. The credit will be retroactive to January 1, 2023.
$150 tax credit in Arkansas Unlike the income tax cuts, the Arkansas tax credit of up to $150 ($300 for joint filers) is retroactive to tax year 2023. That means eligible residents can claim the credit when they file their 2023 Arkansas state tax return.
If you e-filed, your refund should be issued within twenty-one business days after acknowledgment of the receipt of the return. The average processing time for a complete paper tax return is up to 10 weeks from the time you mailed it. Please allow 10 weeks from the date you filed before calling.