Question

Do i owe arkansas state taxes on wages earned in texas?

Forum|Forum|6 years ago
February 14, 2020
1 reply
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TurboTax Free Edition Online

Are you a resident of Arkansas? If so, you typically are taxed in your state of residence. Further, Texas has no state tax, so the wages cannot be taxed there. TurboTax will walk you through the taxation of this income when you are preparing your Arkansas return.

The Arkansas DFA also has more information here.

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T

THW1

My daughter lived and worked in Texas all 12 months of 2019. She maintained her AR diver's license and her vehicle is registered in Arkansas. She uses our home address as her "permanent address" because her employment in Texas may not be permanent.

Am I correct that she resides in Texas and therefore owes no AR state tax?

M

MAK70

Not necessarily- your state of residence for tax purposes is based on domicile- where you have an abode and where you intend to live. Because she did not takes steps to establish Texas as her domicile (driver's license, bank, voting) the state of Arkansas would have strong case to show she would owe tax as an Arkansas resident (even your statement "may not be permanent" is proof that she did not establish domicile in Texas).

see What Is Your Domicile?

@THW1