If Arkansas is the taxpayer’s home of record, he or she is an Arkansas resident even if stationed outside the state. Military personnel stationed in Arkansas with a home of record in another state are treated as nonresidents. Their military wages are not reported anywhere on the Arkansas return.
Under the Military Spouses Residency Relief Act, a military spouse’s state of residence does not change when moving to a new state to be with a service member stationed there if the residence or domicile is the same for the service member and spouse.
A military spouse’s income is exempt from Arkansas tax if the service member’s home of record is not Arkansas and the spouse’s domicile is the same as the service member’s home of record. Write “military spouse” at top of tax return and attach a completed Form AR-MS and a copy of service member’s LES to verify home of record. For future tax purposes, the nonmilitary spouse must submit a new payroll withholding form, ARW-4MS to his or her employer each year to exempt future withholding.