Yes, it seems to be required. There is a special agreement between Arkansas and Texas that allows your income to be non-taxable to Arkansas, but a return is required, and the form you mention is attached to the return. Here is a direct quote from the memorandum that documents this information: Arkansas residents whose permanent residence is within the city limits of Texarkana, Arkansas are exempt from
Arkansas individual income taxes. All income received is exempt while the taxpayer is a resident of Texarkana, Arkansas. The taxpayer is required to file an Arkansas Individual Income Tax Return and submit all appropriate W-2’s and schedules to support the income and deductions. The form AR-TX is also submitted with the tax return which reports the exempt amount of wages earned from a particular employer. (Italics added)
Admittedly, this memorandum does not specifically mention retirement income, which is normally reported on a 1099-R. However, it does say that all income is exempt while a resident of Texarkana, and retirement income would normally be taxed in Arkansas. This is how you would report it so that you are not taxed on it.
Here is a link for the memorandum itself:
texarkana exemption letter - Arkansas Department of Finance and ...
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