How to Fill Out and Submit the Arkansas AR3 Itemized Deduction Form

The Arkansas AR3 itemized deduction form is the schedule you attach to your state income tax return when your deductible expenses add up to more than Arkansas’s standard deduction. You file it alongside the AR1000F if you’re a full-year resident or the AR1000NR if you’re a part-year resident or nonresident, and the total on Line 30 flows directly onto your main return to reduce taxable income.¹ The categories mirror the federal Schedule A: medical costs, taxes, mortgage interest, charitable gifts, casualty losses, and miscellaneous deductions, with Arkansas-specific thresholds and line numbers.

Should You Itemize at All?

Run the comparison before you fill out anything. If your total allowable expenses don’t clear the Arkansas standard deduction for your filing status, take the standard amount instead. Check the current year’s AR1000F or AR1000NR instructions for the exact figures, because the legislature has adjusted them in recent sessions.

One useful quirk: itemizing on your Arkansas return doesn’t force you to itemize federally, and the reverse is also true. You can take the federal standard deduction while itemizing on the AR3 if that mix produces the lowest combined tax. Work it both ways before you commit.

Documents to Pull Together First

Every dollar you claim needs backup if the Department of Finance and Administration reviews your return. Gather these before you open the form:

Medical and dental records: receipts, explanation-of-benefits statements, pharmacy printouts, and health insurance premium notices for anything insurance didn’t reimburse.
Property tax statements: the county assessor’s real estate bill and personal property tax receipts for vehicles, boats, and similar assessed property.
Mortgage interest: Form 1098 from your lender. If you paid interest to an individual (a seller-financed loan, for example), you’ll need that person’s name and address for the form itself.
Charitable contributions: bank statements or canceled checks for cash gifts. For any single donation of $250 or more, you need a written acknowledgment from the charity stating the amount, describing any goods or services you received in return, and giving the charity’s good-faith estimate of their value. A canceled check alone isn’t enough at that level.
Casualty and theft losses: police reports, insurance claim records, and before-and-after appraisals. Personal casualty losses are deductible only when tied to a federally declared disaster.

Organize the records by category and keep originals or clear digital copies. Arkansas requires you to hold onto everything supporting a filed return for at least six years.²

Filling Out the AR3 Line by Line

The AR3 groups related expenses into blocks, each with its own subtotal. Line numbers below follow the current form from the Department of Finance and Administration.³ You can download a blank copy from the DFA forms page.⁴

Medical and Dental Expenses (Lines 1–4)

Line 1 is your total unreimbursed medical and dental costs. Line 2 is your adjusted gross income from the AR1000F or AR1000NR. Line 3 is that AGI multiplied by 10%. Only the portion of your medical spending above 10% of AGI counts.⁵ Subtract Line 3 from Line 1 and put the result on Line 4. If Line 3 is larger, enter zero.

That 10% floor is where medical bills alone often fail to justify itemizing. At $50,000 AGI, you’d need more than $5,000 in unreimbursed costs before a single dollar deducts. Combined with strong numbers elsewhere, though, the medical block can still carry you past the standard deduction.

Taxes (Lines 5–7)

Line 5 is real estate taxes paid during the year. Line 6 covers personal property taxes and other deductible taxes, with space to list the type and amount. Line 7 totals the two.³ You cannot deduct Arkansas state income tax here. It’s specifically excluded.

Interest Expenses (Lines 8–12)

Line 8 is home mortgage interest paid to a financial institution (the Form 1098 amount). Line 9 is mortgage interest paid to an individual, and the form requires that person’s name and address. Line 10 is deductible points. Line 11 is investment interest, with a copy of federal Form 4952 attached if it applies. Line 12 is the interest total.³

Charitable Contributions (Lines 13–17)

Cash and check donations go on Line 13. Noncash gifts such as clothing, household goods, and vehicles go on Line 14. Any carryover from a prior year goes on Line 15. Arkansas adopts the federal rules for charitable deductions under 26 U.S.C. § 170, so the recipient must be a qualified tax-exempt organization.⁶ Keep the written acknowledgment for any single gift of $250 or more.

Casualty Losses, Miscellaneous, and the Total (Lines 18–30)

Line 18 is for casualty and theft losses, deductible only when tied to a federally declared disaster. The remaining lines handle miscellaneous and other deductions. Add the subtotals through to Line 30. That final figure is your total itemized deduction, and it transfers to the appropriate line on your AR1000F or AR1000NR.¹

Submitting the AR3

The AR3 is never filed by itself. It travels with your main return.

Paper Filing

Staple the completed AR3 behind your AR1000F or AR1000NR along with any other supporting schedules, and mail the package to:

Arkansas Department of Finance and Administration
Individual Income Tax
P.O. Box 3628
Little Rock, AR 72203⁷

The deadline is April 15. If it falls on a weekend or holiday, the due date shifts to the next business day.⁸

Electronic Filing

Most tax software handles the AR3 automatically, pulling your itemized entries into the electronic return and transmitting everything together. Arkansas also partners with Free File vendors; if you meet one vendor’s income or age requirements, you can file through their platform at no cost.⁹ When you e-file through an online provider, keep a completed Form AR8453-OL in your personal records along with copies of your W-2s and schedules. You don’t mail the AR8453-OL to the state.

Fixing an AR3 After You File

If you spot an error after submitting (a missed deduction, a transposed number, a receipt that surfaced too late), file an amended Arkansas return. Use the AR1000F or AR1000NR with the “amended” box checked, and attach a corrected AR3 showing the right figures. To claim a refund from the correction, you generally need to file the amended return within three years of the original filing date or within two years of paying the tax, whichever is later.¹⁰ Arkansas imposes its own penalties for negligence or fraud, so correcting an honest mistake promptly is the cleanest path.

How Long to Keep Your Records

Hold onto everything that supports your AR3 for at least six years after filing. Those records are subject to examination by the Department of Finance and Administration at any reasonable time during that period.² That means medical receipts, 1098s, charity acknowledgment letters, property tax bills, and anything else behind the numbers you entered. A clear digital scan in cloud backup counts; the statute doesn’t require paper originals, only that the records exist and can be produced if asked.

1
Arkansas Department of Finance and Administration. Arkansas 2025 Individual Income Tax Forms and Instructions
2
FindLaw. Arkansas Code Title 26 Taxation 26-18-506 – Record Preservation and Maintenance
3
Arkansas Department of Finance and Administration. AR3 Arkansas Itemized Deduction Form
4
Arkansas Department of Finance and Administration. 2025 Tax Forms
5
Arkansas Department of Finance and Administration. Subject 401 Medical and Dental Expenses
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Justia. Arkansas Code 26-51-419 – Deductions – Charitable Contributions
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Arkansas Department of Finance and Administration. Individual Income Tax
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Arkansas Department of Finance and Administration. Deadlines and Extensions
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Arkansas Department of Finance and Administration. FreeFile Program for Individual Income Tax
10
Internal Revenue Service. File an Amended Return