Help with Arkansas return

[cientax]

Have new client whose wife passed away last year while living in Arkansas. Husband then moved to Texas to live in nursing home for medical purposes (83 yrs old and ill). They received interest income and a pension from OPM. No other income. He moved to Texas last year around Oct. Q: Is the pension income and interest income received in Texas allocated out of the total so that we only tax the portion received while in Arkansas? 100% of the interest was paid from Arkansas bank while he lived in TX the last two months.

Another question on AR itemized deductions. Are the itemized deductions also allocated on the AR itemized deduction schedule? This is my first ever out of state return with itemized deductions for part year resident

Client also sold his residence while in AR and qualifies for the 121 exclusion. Do I attach the Federal Sch-D to the AR return or do I prepare the AR Capital Gans/Losses form? This form has no place for the exclusion unless I make the subtraction on the form.

Thanks for your help, I hope!!!

[kcjenkins]

Since he moved during the year, I would work the return both ways, as a full year resident, and as a part-year resident and see which works best for him. He could file either way. Of course, he qualifies to file MFJ either way.

If you file them as a PY resident, you complete the Itemized deductions for the full year, and the program will take it from there. AR calculates the tax on the total income, then takes the AR percentage and applies that to the tax.

The AR interest, shown in col 3 should only include the amounts paid while he was still in AR, ditto for other income sources. Attach a copy of the Fed Sch D showing the exclusion, but if that is the only Sch D item, you don't actually need the AR Sch D. But it should automatically be added by the software, because there is a federal D. However, it will be blank, if that excluded sale is the only thing on the Federal. Leave it in the return, but do not force anything on to it. The software is handling it correctly.

Did I cover everything?