Question

Arkansas taxes - short term capital gains for "Primary/joint income" or "Spouse's Income Status Only"

Forum|Forum|5 years ago
February 19, 2021
1 reply
0 views

My wife and I made 100,000 in short term capital gains. In Arkansas, we can file jointly or individually with the individually (same form) giving the better refund overall. However, for the the short term capital gains, if I put the entire 100,000 in the Primary/Joint Income we save $300 in taxes versus splitting it with 50,000 in Primary/Joint Income column and 50,000 in "Spouse's Income Only column." Can I keep it all in the "Primary/Joint Income" column to save taxes or do I need to split it? Strangely, my spouse makes less so I can't understand why taxes are higher if split it.

AmyC

Employee

If you are filing separately on the same return, the income is allocated between you. The program has a box for each of you to enter your share of the gains. Arkansas gains can be split between you at any allocation if you are joint owners. It is not a community property state and does not have to be $50,000 each.

Not knowing your incomes, you may be pushing the top of the tax chart for each of you. Taxpayers with taxable income greater than $88,000 calculate tax liability as follows:[(Taxable income – $88,000) × 6.6%] + $4,989

**Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"