According to the 2019 Arkansas Instructions, beginning in 2019 retirement benefits received by a member of the uniformed services are exempted from income tax.
When creating your Arkansas state return, you will be asked "Does the Taxpayer and/or the Spouse Qualify for a Pension Exclusion?". You will be able to subtract this retirement income on this page. However beginning with tax year 2019, you will not be able to claim both the military retirement exemption and the $6,000 exemption for traditional IRA distributions.
To find this entry, please go to:
- State Section
- Subtractions from Income
- Military Retirement