How does Arkansas tax remote workers?

There are a few situations to consider. You may fall into more than one category.

1. I lived in Arkansas.
• If you're considered a full-year or part-year resident of Arkansas, you'll be taxed on all income earned from any source during your time of residency. Be sure to file the appropriate return.
2. I worked remotely from Arkansas.
• Arkansas taxes income earned for personal services performed while in Arkansas (even if you're a nonresident). This includes remote work for an employer or clients based outside Arkansas if you were physically in the state while doing the work.
• You may be able to claim a credit for taxes paid to another state on your resident return for any income required to be reported in multiple states.
3. My employer was based in Arkansas.
• If you work for an Arkansas employer remotely from another state (you never physically work in Arkansas) your employer would not have any requirements to withhold Arkansas wages and you should not need to file an Arkansas nonresident return. Nonresident employees only need to file Arkansas returns if they physically work in Arkansas, or to get a refund if their employer withholds income tax on wages that were not earned by actually working in Arkansas
• If your employer didn't withhold Arkansas taxes and you were a nonresident of Arkansas, you probably don't need to file an Arkansas return at all unless you otherwise have an Arkansas nonresident filing requirement.

If your wages were minimal and you didn't do any other business in Arkansas, it's possible you'll be exempt from filing regardless of residency. See the Arkansas AR1000F and AR1000NR instructions for more information.