How to Fill Out Arkansas Form AR1000TC: Schedule of Tax Credits

Arkansas Form AR1000TC is the schedule you use to report individual tax credits and business incentive credits that reduce the state income tax you owe. You attach it to your main return, either the AR1000F for full-year residents or the AR1000NR for part-year and nonresidents, and the total from line 9 of the schedule carries over to line 36 of that return.¹ It is due with the rest of your Arkansas return by April 15.²

Put your name and Social Security number at the top exactly as they appear on your main return. Then work only the lines that apply to you. Leave the rest blank.

Individual Credits on Lines 1 Through 7

Line 1: State Political Contribution Credit

If you gave money to a candidate, campaign committee, political action committee, or organized political party during the tax year, you can claim the amount you contributed up to $50 on an individual return or $100 on a joint return.³ Contributions made before April 15 can be applied to the current year or the prior year, your choice. The form itself does not require an attachment, but keep your receipts.

Line 2: Other State Tax Credit

Arkansas residents who earned income in another state and paid income tax there can claim a credit equal to the tax actually owed to that state, capped at what Arkansas would have charged on the same income at Arkansas rates. Attach a complete copy of the other state’s return. The statute also calls for details showing gross and net income from the out-of-state property or business and the tax owed on it.⁴ Part-year residents and nonresidents follow the same calculation but file on the AR1000NR.

Line 3: Credit for Adoption Expenses

The Arkansas credit equals 20% of the federal adoption credit you calculated on IRS Form 8839.⁵ Attach a copy of your completed Form 8839.¹

Line 4: Phenylketonuria and Other Metabolic Disorders Credit

Families with a dependent child diagnosed with phenylketonuria (PKU), galactosemia, organic acidemias, or certain disorders of amino acid metabolism can claim up to $2,400 per year per child for medically necessary foods and low-protein modified food products. Any unused portion carries forward two additional years.⁶ Complete one Form AR1113 per child and attach it to your AR1000TC.

Line 5: Stillborn Child Tax Credit (Paisley’s Law)

A $500 credit is available for a stillbirth during the tax year if the child was in gestation for at least 20 weeks and a certificate of birth resulting in stillbirth was issued. It can only be claimed in the year of the stillbirth and cannot exceed the tax owed that year.⁷ Attach the certificate to the form.¹

Line 6: Additional Tax Credit for Qualified Individuals

Line 6 is reserved for an additional credit available to certain qualifying taxpayers. The form directs you to the AR1000TC instructions for the eligibility rules; if you qualify, enter the amount on line 6.

Line 7: Credit for Individuals With Developmental Disabilities

If you maintain, support, and care for a person with a developmental disability in your home, you can claim $500 per year for that individual. The disability must have originated before age 22 and be expected to continue indefinitely. Qualifying conditions include intellectual disability, cerebral palsy, epilepsy, spina bifida, Down syndrome, autism, and closely related conditions.⁸ You need certification from a licensed physician, psychologist, or psychological examiner, and you must attach Form AR1000-DD.¹

Business Incentive Credits on Lines 8A Through 8F

The bottom section handles business incentive credits that flow through to individual filers who are owners or shareholders of pass-through entities such as S corporations or partnerships. Each credit goes on its own line, 8A through 8F, with three entries: the tax credit code, the FEIN of the pass-through entity, and the dollar amount. Attach a copy of the tax credit certificate or other supporting documentation from the issuing entity.⁹

Arkansas assigns a numeric code to each business credit type. Common ones include Advantage Arkansas (0001), Historic Rehabilitation (0018), Equity Investment Incentive (0015), In-House Research (0023), and Motion Picture (0056). The full list runs to more than 50 credits, from water conservation to railroad modernization and sustainable aviation fuel.⁹ If you have more than six credits, use an additional AR1000TC schedule.

Totaling and Transferring to Your Return

Add every amount you entered on lines 1 through 7 and put the sum on line 8. If you also entered business credits on 8A through 8F, total those in the line 8 box as well. Add the two totals together and enter the result on line 9. That line 9 figure is what you transfer to line 36 of your AR1000F or AR1000NR.¹

Check that line 9 of the schedule matches line 36 of the main return. A mismatch is one of the fastest ways to trigger a DFA review or delay a refund.

Attachments You Need to Include

Every credit on the AR1000TC requires some form of backup. Missing attachments are the most common reason a credit gets denied or a return gets pulled for manual review.

Line 2, other state tax credit: a complete copy of the other state’s return.
Line 3, adoption expenses: a copy of federal Form 8839.
Line 4, PKU and metabolic disorders: Form AR1113 for each child, including the physician’s certification under penalty of perjury.
Line 5, stillborn child credit: the certificate of birth resulting in stillbirth.
Line 7, developmental disabilities: Form AR1000-DD with certification from a licensed physician, psychologist, or psychological examiner.
Lines 8A through 8F, business incentive credits: the tax credit certificate or other documentation from the issuing entity.

Line 1 does not require an attachment, but keep your donation records in case the DFA asks.

Filing the Form

You can file electronically or on paper. E-filing through paid software or an approved Free File provider bundles the schedule with your main return and reduces math errors.¹⁰ If you file by mail, attach the completed AR1000TC and all supporting documents to your AR1000F or AR1000NR and send the package to:

Arkansas Department of Finance and Administration
PO Box 3628
Little Rock, AR 72203¹¹

Paper returns take longer. Budget up to 10 weeks from the mailing date, compared with roughly 21 business days for an e-filed return. Returns claiming credits are more likely to be pulled for manual review if attachments are missing or if the schedule’s totals do not reconcile with the main return.

Records to Keep

Keep copies of your AR1000TC, every attachment, and the supporting records for at least three years after you file. If you underreported income by more than 25% of the gross income shown on the return, keep them six years. If you never filed or filed a fraudulent return, there is no time limit.¹² These federal retention windows are a sound baseline for your Arkansas records as well. If the DFA follows up on a credit, respond promptly with the requested documentation; silence usually ends with the credit disallowed.

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Arkansas Department of Finance and Administration. AR1000TC 2025 Arkansas Individual Income Tax Tax Credits
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Arkansas Department of Finance and Administration. Deadlines and Extensions
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Justia. Arkansas Code 7-6-222 – Tax Credits for Certain Individual Campaign Contributions
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FindLaw. Arkansas Code Title 26 Taxation 26-51-504 – Out-of-State Income
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Justia. Arkansas Code 26-51-445 – Adoption Expenses
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Arkansas Department of Finance and Administration. AR1113 2025 Phenylketonuria and Other Metabolic Disorders Credit
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FindLaw. Arkansas Code Title 26 Taxation 26-51-516 – Childcare Services
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Justia. Arkansas Code 26-51-503 – Support of a Child with a Developmental Disability
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Arkansas Department of Finance and Administration. Instructions for AR1000TC
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Arkansas Department of Finance and Administration. FreeFile Program for Individual Income Tax
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Arkansas Department of Finance and Administration. Individual Income Tax
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Internal Revenue Service. How Long Should I Keep Records