What types of income are taxable in Arkansas?

In Arkansas, taxable income primarily includes wages, salaries, commissions, and bonuses received from employment. Additionally, income derived from self-employment activities is subject to taxation. This encompasses profits from businesses or trades operated by individuals who are not considered employees. Other forms of taxable income include interest earned on bank accounts or investments, dividends from stocks, capital gains from the sale of assets, and rental income from property owned by individuals. Furthermore, retirement income, such as pensions and distributions from retirement accounts, may also be taxable, although specific exemptions or deductions may apply depending on individual circumstances. Social Security benefits are generally not taxed at the state level in Arkansas. Certain types of government benefits, alimony, and unemployment compensation are also classified as taxable income. It is important for residents to be aware of different types of deductions and exemptions that the state offers, which can reduce the overall taxable income. Arkansas Department of Finance and Administration provides detailed information on taxable income and specific exemptions in their tax guidelines. Individuals seeking clarity on specific cases should refer to their website, where they can find additional resources and potentially relevant contact information. Staying informed about these regulations is vital for accurate tax filing and compliance within the state.