Jonesboro, AR – JonesboroRightNow.com – It’s the start of tax filing season, and this year, Arkansas filers are navigating a landscape that looks a little different than years past.

Whether an individual files their own returns or hires a professional, Jonesboro Right Now has informaiton on how to get the most out of tax season. Below is a guide for the 2026 filing season in Arkansas, based on the latest data from the Arkansas Department of Finance and Administration (DFA).

Filing Deadlines and Receiving a Refund

According to Scott Hardin, spokesperson for the DFA, the deadline to file a state income tax return is April 15. He explained that, while the deadline was extended to Dec. 3 last year due to severe weather, there are no extensions this year at this time.

Hardin noted that, even if extensions were filed last year, the filing process this year doesn’t change. For those eyeing a refund, filing early can help the refund come in more quickly. Hardin said the state processed 1.46 million returns in 2025, issuing just under a million refunds with an average amount of $586.

To ensure a return is processed quickly, Hardin said filing an electronic return is the way to go. E-filing generally takes three to five weeks to process (estimates can vary slightly by volume). On the other hand, going the traditional route can take six to eight weeks.

Tips and Overtime

One of the changes for those filing their taxes this year involves tips and overtime. For the first time, federal law treats tips and overtime income differently from the way Arkansas law treats this income.

Signed into law on July 4, 2025, the federal “One Big Beautiful Bill Act” (OBBBA) created a new deduction for service workers and hourly employees.

  • Tips: Up to $25,000 of voluntary tip income is now deductible from federal income tax
  • Overtime: The deduction applies only to the “premium” portion of an individual’s pay
    • Overtime deduction is capped at $12,500 for single filers and $25,000 for couples
  • These benefits begin to disappear if an individual’s modified adjusted gross income exceeds $150,000 ($300,000 for couples)

While the federal government passed these cuts, the Arkansas Legislature did not follow suit.

In the 2025 regular session, state lawmakers introduced House Bill 1822, or the “Overtime but not Overtaxed Act.” This act would have created an exemption for state taxes, but the bill died in committee in May 2025. This means that tips and overtime will remain 100% taxable at the state level.

Because of this mismatch, filling a return in 2026 prohibits a copy and paste of numbers from a federal to a state return. Instead, when reviewing the return, those filing should look at the W-2 Form carefully, paying attention to two sections specifically:

  • Box 1 (Wages, tips, and other comp): This number may be lower if an employer has adjusted it for federal deductions
  • Box 16 (State wages, tips, etc.): This number will be higher. It includes every dollar of tip and overtime pay earned.

Hardin said no adjustment for tips and overtime is needed on the Arkansas return, adding that the allowable deductions for tips and overtime are deductions from total wages.

Deductions and Credits

Expenses can be a good deduction if they qualify. For those unsure what can be tax-deductible, consult a tax professional. And those who simply don’t have enough annual expenses to itemize can claim a standard deduction for the year. For the 2025 tax year, the inflation-adjusted amounts are:

  • Single/Head of Household: $2,470
  • Married Filing Jointly: $4,940

Anyone who purchased an electric vehicle last year, hoping for a state tax credit, should be aware of the deadline. Hardin said the date of the purchase agreement must be on or before Sept. 30, 2025, in order to be eligible for the credit.

Protect the Refund

Tax fraud remains a persistent threat. On average, criminals have attempted to claim refunds averaging more than $2,400 last year, according to Hardin.

To ensure a return is processed smoothly and safely, the DFA suggested the following:

  • Triple-check banking information: For direct deposit, triple-check banking information, such as account and routing numbers. A simple typo can cause a refund to be delayed.
  • Extensions: If a federal extension is filed, a separate state extension doesn’t need to be filed. However, the “Extension” box on the state return will need to be checked when the filing is eventually completed.
  • Mailing checks: Anyone who owes money for tax year 2025 and wants to pay via check should include their name, social security number, and the tax year on the memo line. Never mail cash, as there is a higher risk of unrecoverable theft or loss. The U.S. Postal Service cannot ensure more than $15 in currency for standard mail.

For state returns, the status of a refund can be checked, or payment can be made, directly to the Arkansas Taxpayer Access Point.

For federal returns, payments can be made here, and refund status can be checked here.