re: If i work in Arkansas, but live in Tennessee...

Arkansas will tax you as a non-resident on your income from Arkansas sources. Tennessee will tax you as a resident on your income from all sources, except Tennessee does not have an individual income tax. In order to avoid double taxation, Tennessee would give you a credit for the taxes paid to Arkansas. But since Tennessee does not have an income tax, there is no credit.

The end result is that you will have to pay Arkansas income tax on the wages you earn from working in Arkansas. Your employer will have to withhold the Arkansas income tax from your wages whether you like it or not.