The Arkansas Border City Form (Subject 302 AR-TX) addresses the unique tax situation for residents of Texarkana, which spans both Arkansas and Texas. Qualifying residents who live and earn wages within this border city area can exclude that income from Arkansas state income tax. This tax benefit applies to individuals who file using a physical street address in either Texarkana, Arkansas, or Texarkana, Texas. A Post Office Box or Rural Route address will disqualify your claim, so an established physical street address is a strict requirement.
Claimants must provide specific documentation. For wage income, attach Form AR-TX and a W-2 form from each employer in the Texarkana border city zone. Non-wage income types such as interest, dividends, and rental income do not qualify and are taxed at the standard Arkansas income tax rate. Even with the border city income exclusion, residents must file a complete Arkansas income tax return that reports total income from all sources. The qualifying border city income is then subtracted on Form AR1000ADJ, reducing the amount of Arkansas taxable income accordingly.
| 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 |