How do I only report my AR wages on AR income tax return and not my TN wages when I'm a TN resident?

[DanielV01 · Accepted solution]

It depends on how Arkansas calculates your tax.  Your Tennessee income is not taxed in Arkansas since you are a TN resident.  However, Arkansas may well factor in your TN income to determine the amount of AR tax.  They may pretend that all of your income is taxable in TN, and then prorate the amount to the amount of income you earned in Arkansas.

For example, if you earned 25,000 in TN and 25,000 in AR, then Arkansas would figure out how much tax you pay on $50,000 of income, and then assess you 1/2 of that amount.  Your TN income is not taxed in Arkansas, but is used to figure out how much tax you pay in Arkansas.