Arkansas Governor Signs Law Exempting Unemployment Compensation, Insurance Benefits From Individual Income Tax Act

The Arkansas Governor March 1 signed a law exempting unemployment compensation benefits and unemployment insurance benefits from individual income tax for calendar years 2020 and 2021. The law includes measures creating an exemption from the tax imposed by the Income Tax Act of 1929 for: 1) unemployment compensation benefits paid from federal unemployment funds for the calendar year 2020 or 2021; and 2) unemployment insurance benefits received from unemployment compensation paid under Title IV of the Social Security Act for the calendar year 2020 or 2021. The law took effect March 1. [/AR\FINAL\2021R1SB236///, enacted 03/01/21]

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