First of all, if you used the Standard Deduction on your 2017 Federal tax return, state refunds received in 2018 are not claimed as income.
If you Itemized on your 2017 Federal return (used Schedule A) and you claimed State Income tax paid (rather than State Sales tax) you may need to claim the refund as income.
(if you used the state sales tax, the refund is again not reported)
So if you did Itemize on your 2017 Federal tax return, and claimed state income tax paid,
enter the Wisconsin refund as income
ALSO enter the Arkansas tax you paid in 2018 as a deduction (since that tax was not on your 2017 W-2, so was not claimed on your 2017 Federal return)
