Browse Arkansas Code titles and sections
26-51-435. Nonresidents or part-year residents.
Arkansas Code — all titles (historical 2020) · legal_authorities
26-51-435. Nonresidents or part-year residents.
(a) Nonresidents or part-year residents of Arkansas shall compute their taxable income as if all income were earned in Arkansas.
(b) Using Arkansas income tax rates, nonresident or part-year residents of Arkansas shall compute their tax liability on the amount computed in subsection (a) of this section.
(c) From the tax liability computed in subsection (b) of this section there shall be deducted all allowable credits to determine the amount of tax due.
(d)(1) Nonresidents shall divide adjusted gross income from Arkansas sources by the adjusted gross income from all sources to arrive at the applicable percentage that Arkansas adjusted gross income represents of all adjusted gross income received by the taxpayer in the income year.
(2) Part-year residents shall divide adjusted gross income received while an Arkansas resident by the adjusted gross income from all sources to arrive at the applicable percentage that the adjusted gross income received while an Arkansas resident represents of all adjusted gross income received by the taxpayer in the income year.
(e) Nonresidents and part-year residents shall multiply the amount computed in subsection (c) of this section by the applicable percentage from subsection (d) of this section in order to determine the amount of income tax which must be paid to the State of Arkansas.
(f) For the purpose of ascertaining the income tax due by a nonresident or part-year resident of Arkansas with income derived from two (2) or more states, the credit available under § 26-51-504 for income tax paid to other states shall be calculated in the following manner:
(1) The credit shall not exceed what the tax would be on the outside income, if added to the Arkansas income, and calculat
Source: Arkansas Code — historical release 78 (November 6, 2020) · 26-51-435
Stored review status: Historical 2020-11-06 source release; later amendments not reconciled; machine-extracted, not independently legally reviewed; source heading status: text_in_historical_source. A text match is a research starting point; applicability is not established.
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Stable record: arkansas_code:legal_authorities:26-51-435
Source file: gov.ar.code.title.26.odt
Pages: Not recorded – Not recorded
Passage SHA-256: fed5e4cfb6a8701ff4bd4af3a25740fa47ffedb8a9f37d090c1af24c3da05752
Source location: content.xml paragraph 12928
Stored source content
26-51-435. Nonresidents or part-year residents.
(a) Nonresidents or part-year residents of Arkansas shall compute their taxable income as if all income were earned in Arkansas.
(b) Using Arkansas income tax rates, nonresident or part-year residents of Arkansas shall compute their tax liability on the amount computed in subsection (a) of this section.
(c) From the tax liability computed in subsection (b) of this section there shall be deducted all allowable credits to determine the amount of tax due.
(d)(1) Nonresidents shall divide adjusted gross income from Arkansas sources by the adjusted gross income from all sources to arrive at the applicable percentage that Arkansas adjusted gross income represents of all adjusted gross income received by the taxpayer in the income year.
(2) Part-year residents shall divide adjusted gross income received while an Arkansas resident by the adjusted gross income from all sources to arrive at the applicable percentage that the adjusted gross income received while an Arkansas resident represents of all adjusted gross income received by the taxpayer in the income year.
(e) Nonresidents and part-year residents shall multiply the amount computed in subsection (c) of this section by the applicable percentage from subsection (d) of this section in order to determine the amount of income tax which must be paid to the State of Arkansas.
(f) For the purpose of ascertaining the income tax due by a nonresident or part-year resident of Arkansas with income derived from two (2) or more states, the credit available under § 26-51-504 for income tax paid to other states shall be calculated in the following manner:
(1) The credit shall not exceed what the tax would be on the outside income, if added to the Arkansas income, and calculated at Arkansas income tax rates; and
(2) The credit is limited to the total income tax owed to other states on income that has been:
(A) Reported as taxable income to both Arkansas and the other states;
(B) Reported as income from all sources; and
(C) Included as Arkansas income.
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Arkansas Code — all titles (historical 2020) · legal_authorities
26-51-504. Income from sources outside Arkansas — Definition.
(a)(1) For the purpose of ascertaining the income tax due by an individual resident of Arkansas whose gross income includes income derived from property located outside the State of Arkansas, or from business transacted outside the State of Arkansas, the tax shall first be computed as if all of the income of the resident were derived from sources within the State of Arkansas, but a credit shall then be given on the tax as so computed, for the amount of income tax actually owed by the resident for the year to any other state or territory on account of income from property owned or business transacted in the other state or territory. However, credit shall not exceed what the tax would be on the outside income, if added to the Arkansas income, and calculated at Arkansas income tax rates.
(2)(A) For purposes of subdivision (a)(1) of this section, the amount of income tax owed to any other state or territory by a resident shareholder of an S corporation shall be considered to include an amount equal to the shareholder's pro rata share of any net income tax owed by the S corporation to a state which does not recognize S corporations.
(B) As used in subdivision (a)(2)(A) of this section, “net income tax” means any tax imposed on or measured by a corporation's net income.
(b) Before a resident of Arkansas may claim the credit allowed under this section, he or she shall file with his or her income tax return any such additional information as the Director of the State Income Tax Division or the Secretary of the Department of Finance and Administration may by rule require showing in detail the amount of gross and net income derived from property owned or business transacted without this state, together with the
Source: Arkansas Code — historical release 78 (November 6, 2020) · 26-51-504
Stored review status: Historical 2020-11-06 source release; later amendments not reconciled; machine-extracted, not independently legally reviewed; source heading status: text_in_historical_source. The source passage cites 26-51-504. This identifies an authority to review, not proof of applicability.