New Tax Credit to Provide Relief in Arkansas
As the current year draws to a close, residents in the state of Arkansas are gearing up for a new tax credit that will provide much-needed financial relief. Beginning in January 2024, individuals and married couples meeting specific eligibility requirements will be able to claim a tax credit of up to $300.00 USD.
The tax credit comes as a response to the ongoing inflation crisis, with Governor Sarah Huckabee Sanders signing a tax bill into law last September to reduce taxes for corporations and individual taxpayers. “This week’s latest inflation report shows that Joe Biden’s policies continue to drive up prices. This makes this tax relief more necessary than ever,” Sanders said in a recent statement.
In order to qualify for the tax credit, individuals must file a 2023 Arkansas tax return and meet certain income requirements. Single taxpayers can receive $150.00 USD, while married couples filing jointly can claim up to $300.00 USD if their annual income does not exceed $179,200.00 USD. The credit will be phased out for couples earning up to $207,200.00 USD.
It’s important to note that the tax credit is only valid for the 2023 fiscal year and is not refundable, meaning it cannot be recovered as a tax refund. Additionally, individuals who have only lived part of the year in Arkansas or are not legal residents of the state will not be eligible to receive the tax credit.
The credit is retroactive to the 2023 tax year and can be claimed once the tax return is filed. With rising prices and economic challenges, the tax credit aims to provide much-needed support for Arkansas residents as they navigate financial uncertainties.
As the new year approaches, individuals are encouraged to review the eligibility requirements and prepare to claim the tax credit to help alleviate financial burdens in the year ahead.