[buccino]

Here are my details:-

A. I am on H1B visa employed with a firm in Dallas, TX.
B. My project assignment requires me to travel to Arkansas every week.
C. I have an accommodation in Dallas, TX
D. AR does have State TX whereas TX does not have it.
E. My wife is dependent and has not income of her self

Since we have a 9 month old kid, my wife wants to come over and stay along with me in AR. I will continue to travel to Dallas, TX every Friday to attend my employer. Can I take another accommodation in AR and bring my family in, without having to pay the AR state tax. Please recommend something so that I can balance by personal and professional priority.

[AtlantaTaxExpert]

Right now, you are a Texas resident who works in Arkansas as a non-resident. You STILL have to pay Arkansas income taxes, because the income was earned while you are IN Arkansas, but you would file as a non-resident. If you are paid on a seven-day work week, you would pro-rate your salary between Arkansas and Texas.

If you move your family to Arkansas, you will become an Arkansas part-year resident, the residence is switched to Arkansas. Now, ALL income (irrespective of where it is earned) is subject to Arkansas income tax starting on the day your family arrives in Arkansas, because all states follow the IRS model that ALL residents' world-wide income is subject to the state income tax.