The unique tax situation for residents of Texarkana, spanning Arkansas and Texas, introduces a specialized approach through the Arkansas Border City form, specifically Subject 302 Border City Exemption. This provision extends a significant benefit to those living and working within these conjoined cities, offering an exemption from Arkansas income tax on earnings for eligible residents. The criteria for availing of this exemption are precise, requiring residents to file their income tax using a street address within either Texarkana, Arkansas, or Texarkana, Texas. Furthermore, the stipulation that a Post Office Box or Rural Route address will disqualify the exemption underscores the importance of an established physical residence within the specified locations. Claimants must also provide specific documentation, such as a W-2 form and the Form AR-TX for wage income, while non-wage income types, including interest and dividends, among others, are subject to different documentation criteria. Despite this exemption, individuals are still mandated to file an Arkansas return, reporting their total income from all sources, which permits the exemption for qualifying income to be subtracted on Form AR1000ADJ. This regulation encapsulates the state's effort to simplify tax obligations for residents navigating their financial responsibilities across these border cities.
| Question | Answer |
|---|---|
| Form Name | Arkansas Border City Form |
| Form Length | 1 pages |
| Fillable? | No |
| Fillable fields | 0 |
| Avg. time to fill out | 15 sec |
| Other names | ar tx border exemption form, how to print my arkansas border city exemption, artx boarder excemption form, arkansas state border city exemption form ar tx |
Subject 302
Border City Exemption (Texarkana – Arkansas and Texas)
If you were a resident of Texarkana, Arkansas, the income you earned is exempt from Arkansas income tax.
If you were a resident of Texarkana, Texas, the income you earned working in the city of Texarkana, Arkansas is exempt from Arkansas Income Tax. Any other income you earned from Arkansas sources is taxable to Arkansas.
To claim this exemption, you must meet the following conditions:
1.You must file using your street address in either Texarkana, Arkansas or Texarkana, Texas. If you use a Post Office Box or Rural Route this exemption will be disallowed.
2.If you are claiming an exemption for income from a
3.You must file an Arkansas return and report your total income from all sources. You may claim the exemption for eligible income as an adjustment on Form AR1000ADJ.