@AmyC, yes that is so helpful, thank you! I'm so glad you understand my questions. It's been frustrating trying to find something online that speaks to this issue.
So I've learned that Arkansas is one of several states that doesn't conform to the federal tax code (interesting!), and that I *should* only be taxed on the portion that wasn't taxed the first time, and I totally get that. You've helped so much. Thanks again!
