I ran a test for Arkansas with a simple pension and some made up numbers to force the Simplified Method to reduce the taxable amount on the federal return. (i.e., a $10,000 gross distribution showed only $9,714 as taxable).
The $9,714 taxable amount appeared on line 5b on the 1040 (line 5a had the $10,000).
I indicated that this pension was "Employer-sponsored pension plan or qualified IRA" to make it eligible for the $6,000 Arkansas exemption.
This gave me a gross distribution of $10,000 and a Taxable amount of $9,714 on line 18A on the AR1000F, as a result of $3,714 when the $6,000 exemption is factored in.
Based on your comments, I am pretty sure that this is not what you got. So please tell me what you entered on the 1099-R - especially box 2a - and what you checked as to the type of pension, and what you got on line 18A on your AR1000F.
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