Arkansas Form AR1000F: Filing the Final Income Tax Return After a Death

The tax documents start arriving in January. A W-2 or 1099 lands in the mailbox addressed to someone who died six months ago, and suddenly it hits: there are still tax returns to file. Arkansas has no estate tax and no inheritance tax, but that doesn't mean the tax obligations end at death. Two separate Arkansas returns may be due — one for the decedent, one for the estate itself — and missing either one can trigger penalties, interest, or worse, personal liability for the executor.

Here is exactly what needs to be filed, when, and who signs.

The Two Arkansas Returns After a Death

Arkansas requires two entirely different returns in most estate administrations.

Form AR1000F is the Arkansas Full Year Resident Individual Income Tax Return. The executor or surviving spouse files a final AR1000F covering every dollar the deceased person earned from January 1 through the exact date of death. Everything after that date belongs to the estate, not the person.

Form AR1002F is the Arkansas Fiduciary Income Tax Return — the estate's own annual return, covering income the estate generated after death: bank account interest, rental income, proceeds from selling estate assets, and similar items. The estate is a separate taxpayer requiring its own EIN (Federal Employer Identification Number, obtained via IRS Form SS-4), because the deceased person's Social Security Number cannot legally be used for estate accounts or fiduciary filings after the date of death.

Both carry an April 15 deadline in the year following the death. Both are filed with the Arkansas Department of Finance and Administration (DFA).

Filing the Final AR1000F

The final AR1000F covers income from the start of the tax year through the date of death. For someone who died on October 3, 2025, for example, the final return covers January 1 through October 3, 2025, and is due April 15, 2026.

A few rules apply specifically to deceased taxpayer returns:

Mark the return clearly. On a paper return, write "Deceased," the taxpayer's full name, and the date of death across the top. Failure to do so delays processing.

Joint returns remain available. A surviving spouse who has not remarried before December 31 may file a joint AR1000F for the year of death. This usually reduces the total tax bill, and the surviving spouse can continue using "Qualifying Surviving Spouse" filing status for two more years afterward, preserving favorable tax brackets.

Who signs depends on who is filing. A court-appointed personal representative signs in their own name plus fiduciary capacity. If neither a personal representative nor a surviving spouse is filing, the person claiming a refund must attach Form 1310 (federal) or Arkansas Form AR1310 to authorize its release.

Refund checks come out wrong. The DFA frequently issues state refund checks payable to "Estate of [Name]." Banks refuse to deposit these into a personal account. The executor needs an estate bank account opened under the estate's EIN to cash them — which is why applying for the EIN early matters.

Arkansas's top individual income tax rate is 3.7% for 2026. The filing obligation remains even when the balance owed is small or zero.

When Form AR1002F Is Required

The estate fiduciary return (AR1002F) is triggered if any of these three conditions apply:

1. The estate's net income during the administration period is $3,000 or more
2. Any income is currently distributable to beneficiaries during the tax year
3. Any beneficiary resides outside of Arkansas

That third trigger catches many executors off guard. Even if the estate earns only a few hundred dollars in interest while probate drags on, the presence of a single out-of-state heir requires filing an AR1002F. Arkansas is aggressive about tracking income distributed to nonresidents.

The AR1002F reports all income generated after the date of death — interest, dividends, capital gains from asset sales, rental income, timber proceeds — and allocates shares to beneficiaries via Schedule K-1. Each beneficiary reports their K-1 share on their own personal return. The estate does not pay tax on amounts it distributes; those pass through to the recipients.

If the estate's expected net tax liability will exceed $1,000 for the year, the executor must also file quarterly estimated tax payments using Form AR1002ES. Failure to pay at least 90% of the current year's liability triggers an underpayment penalty at 10% per annum, assessed on a quarterly basis. Farm estates have an important exception: if at least two-thirds of the estate's gross income comes from farming, the quarterly estimated payment requirement is waived.

The Nonresident Withholding Trap

If the estate distributes Arkansas-sourced income — rental income from Arkansas property, capital gains from selling Arkansas real estate, or timber sale proceeds — to a beneficiary who lives in another state, Arkansas law requires the executor to withhold state income tax at 3.9% before sending that distribution. The withheld amount is remitted to the DFA using Form AR941PT, and a Form AR1099PT must be furnished to the nonresident beneficiary.

Executors who skip this step become personally liable for the unpaid withholding. This is not a theoretical risk — Arkansas enforces it. The AR1002F instructions make this requirement explicit, but it is easy to overlook when the executor is already juggling probate deadlines and federal filings.

Extension Options

If more time is needed to prepare the AR1002F — particularly when complex K-1 allocations are involved or when the CPA is waiting on final appraisals — the executor can file Form AR1055-FE before the April 15 deadline. This grants calendar-year estates a 210-day extension (to November 15). Fiscal-year estates receive a 180-day extension.

This extension applies only to the filing deadline, not to the payment deadline. Any tax owed still accrues interest and failure-to-pay penalties from April 15 forward, even with a valid extension on file.

The final AR1000F extension works the same way: file for an extension to delay the return, but pay any estimated balance due by April 15 to stop the penalty clock.

Getting the CPA Involved at the Right Time

Most executors can handle the final AR1000F themselves if the decedent had straightforward wage or pension income. Standard tax software handles it after noting the "Deceased" designation and correct date of death.

The AR1002F is a different matter. Once the estate involves distributable income, nonresident beneficiaries, or complex assets like rental property or timber rights, a CPA is worth the cost. The nonresident withholding calculation alone — mapping each beneficiary's state of residence against each income source's Arkansas nexus — requires judgment that consumer software cannot reliably provide.

Before that appointment, having three things organized saves significant billable time: the date-of-death fair market value for every asset, the physical addresses of all beneficiaries, and a record of any income generated by the estate after death.

For a complete step-by-step roadmap covering the EIN application, both returns, the creditor protection period, and the tax clearance certificate required to close probate, the Arkansas Final Tax & Estate Tax Guide walks through the full process with checklists and a CPA handoff packet designed for exactly this situation.

Key Deadlines at a Glance

Arkansas's lack of an estate tax is genuinely good news for most families. But the income tax obligations — both for the person who died and for the estate itself — run on their own clock and carry real penalties for executors who assume the tax story ended at death. Filing both the AR1000F and the AR1002F correctly, with proper documentation and the right signatures, closes out those obligations cleanly and protects the executor from personal exposure during the distribution phase.

For more on the full probate and tax timeline in Arkansas, see Arkansas Probate Process and Arkansas Estate Income Tax and Form 1310.

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