Louisiana Credit for Taxes Paid to Other States
Louisiana Credit for Taxes Paid to Other States
If you are a resident of Louisiana, you are allowed a credit for income taxes paid to other states for income reported on your Louisiana return (R.S.47:33). Note that you may not claim the tax withheld; you must file a return with the other state and claim the tax actually paid. You may not claim credit for taxes paid to cities or foreign countries. See Revenue Ruling 02-013 for information on taxes paid to the District of Columbia.
The credit is allowed ONLY if both of the following conditions are met:
a. The other state provides a similar credit for Louisiana income taxes paid on income derived from property located in, or from services rendered in, or from business transacted in Louisiana.
b. The other state does not allow a nonresident a credit against the income taxes imposed by that state for taxes paid or payable to the state of residence.
Act 6 of the 2018 2nd Extraordinary Session limited the credit to the amount of taxes paid to the other state or the amount determined by multiplying the taxpayer’s Louisiana income tax liability by a fraction, the numerator of which is the taxpayer’s Louisiana tax table income attributable to the other state to which net income taxes were paid, and the denominator of which is total Louisiana tax table income, whichever is less. See Revenue Information Bulletin 16-052 for information on qualifying states and Revenue Information Bulletin 18-029 for information on how to determine the amount of the credit. A copy of the returns filed with the other states must be attached to your return.
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