AR HB1056

Updates Internal Revenue Code references from January 1, 2007 to January 1, 2011 for defining head of household and qualifying widow/widower tax statuses

Creates new income tax exemption category for tax year 2011 and beyond: head of household or qualifying widow/widower with two (2) or more dependents with gross income less than $18,101 (2010 base rate) plus annual cost-of-living adjustment

Increases gross income thresholds for low income tax credits across all taxpayer categories effective 2010-2011, with head of household taxpayers with two or more dependents newly eligible for credits up to $22,200 base income (plus cost-of-living adjustment)

Establishes separate low income tax credit calculation method for head of household/qualifying widow taxpayers with two or more dependents beginning tax year 2011, using $9.00 reduction per $100 of income exceeding indexed threshold

Takes effect for tax years beginning on or after January 1, 2011