Q. will we have to pay ANY income taxes to AR if we only make money in MS?
A. No. You will only need to file an AR income tax return if you somehow start get ting AR source income.
Q. Will we be able to consider ourselves as AR residents even if all our income is from MS?
A. Once you become AR residents, even if you continue to have MS income, you will have to file an AR tax return*. You will become an AR resident when you start spending more than 6 months, per year, in AR. Reference: https://casetext.com/regulation/arkansas-administrative-code/agency-006-department-of-finance-and-ad....
*This is the general rule: The income is work state (WS) source income since it was earned there. Resident States (RS) tax all their resident's income, regardless of where earned. You will file a non-resident tax return for the WS and report the WS income. You will file a full year resident return for the RS, reporting all your income. The RS will give you a credit, or partial credit for any tax paid to the WS.
