If you are a resident of Arkansas, you are required to file a return and claim all of the income for the resident state. The active duty military pay is not taxed on the resident return.
The Military Pay Exemption (Act 1408 of 2013) created a 100% exemption from income tax for service pay or allowance received by an active duty member of the Armed Forces for tax years beginning on or after January 1, 2014.
Active duty includes all members of the Armed Forces, including the National Guard and Reserve Units.
Thank you for your service.
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