Does Arkansas tax unemployment compensation for 2020

[Spartini]

Does the state of Arkansas tax unemployment compensation on 2020 tax return

[Just-Lisa-Now-]

I'll bet Google knows

[Just-Lisa-Now-]

I just saw something in another group that just yesterday Arkasas decided NOT to tax UI in 2020 or 2021....it will be weeks before Intuit will program these changes into the software though Im afraid.

[JML222]

State by state guide.

https://www.kiplinger.com/taxes/state-tax/602307/taxes-on-unemployment-benefits-a-state-by-state-gui...

[SamanthaDeaton]

As of 3.24.21 Proseries Basic isn't calculating the exclusion for Arkansas Unemployment correctly.   It's not taxing unemployment then providing an additional credit in the amount of the unemployment.

Also, has Arkansas legislation adopted the Covid Retirement Distribution Relief?  In other words have they conformed to the Federal 8915?

[Just-Lisa-Now-]

ProSeries hasnt been updated for ANY states regarding the federal UI exclusion and the changes it causes on the state returns.

[SamanthaDeaton]

It has for Arkansas and its incorrect.

I'm doing a return right now.   They had $6188 of unemployment.  Federal Schedule 1 they added on Line 7 and then on line 8 - it listed as UCE (6,188) for a net of zero.

On Arkansas, its listed on line 21 for $6188 (BUT NOT ADDED TO TOTAL INCOME), then subtracted on Line 22 AR-OI as ($6188).   So instead of netting to zero, its actually giving a $6188 credit to income since the $6188 isn't added to income.

This needs to be corrected ASAP.  I tried to manually correct but it won't let me take out the AR-OI adjustment.

[Catmom]

I have the same issue.  It's excluding the entire amount of unemployment, which is $14,726. but it's also giving an adjustment of -$10,200 on line 7 of Form AR-OI. It automatically populates that number, but I can override by typing a zero in that box. It seems like ProSeries should have fixed this by now.  It's been 2 months since you posted this issue.