The State of Arkansas exempts all military pay earned out of state.
In the Personal Info
section of Turbo Tax, when you are on the page titled “Your personal info” be sure you click the radio button indicating
you served in the military. Then, after
entering the dollar amounts of your military W-2, one of the following pages
will ask “Do any of these uncommon
situations apply to this W-2?” Check
the first box to tag the W-2 as an active duty military W-2.
NOTE: If your spouse is not an
Arkansas resident, the state requires you to file as an Arkansas Resident using
Married Filing Separately on Different Returns, even if you filed a joint
federal return. The instructions above will not exempt your Arkansas
income if you file the state jointly when you should be filing separately.
The instructions to file a separate
state return after filing jointly on your federal return can be found here:
Filing Separate State
Returns After Filing Jointly for Federal