The border city exemption isn’t automatic. To claim this exemption you must do the following:

1. You must file using your street address for Texarkana, Arkansas or Texarkana, Texas.  If you use a rural route or post office box the exemption will be denied.

1. If you are claiming an exemption for income from a W-2 form, you must attach the W-2 and form AR-TX supplied by your employer.
2. You must file an Arkansas return and report income from all sources. You claim an exemption for eligible income as an adjustment on Form AR1000ADJ.

Every year we represent several taxpayers who thought the exemption was automatic and didn’t file a tax return and claim the exemption.  If you don’t file and claim this exemption the State of Arkansas will use your federal information and file you an Arkansas return, assess a balance due, and file a lien in the circuit clerk’s office at the county courthouse.

Now you have an Arkansas Income Tax problem and the state tax lien is impacting your credit score and ability to borrow money.  We can fix this by filing an original return and if you qualify for the exemption we will have the lien withdrawn.  We can also file your federal and state income tax returns each year and avoid these problems. Please call us or visit our website for more information.