Louisiana Other Non-Taxable Income

Interest and Dividends on U.S. Government Obligations – Enter the amount of interest and dividends received from U.S. government obligations that are included in the amount on Line 1 of Schedule E. Include amounts received from mutual funds, which are identified as income from investments in U.S. government obligations. If the amount is not identified specifically, it is taxable and cannot be excluded.

Military Pay Exclusion – R.S. 47:293(9)(e) provides an exclusion to Louisiana residents who were on active duty in the U.S. armed forces for 120 or more consecutive days. The exempt portion is the compensation earned outside of Louisiana during and after 120 plus consecutive days of active duty, up to $30,000. Example: If on January 15, 2020, you went on active duty and continuously remained on active duty at least through May 14, 2020, (120 days)during which you served 40 days in Louisiana and the remainder outside of Louisiana, income from the 41st day forward is exempt, up to $30,000, once you have served more than 120 consecutive days. Retain a copy of your official orders, including endorsements that establish your 120 plus consecutive days of active duty with your 2020 return. If filing electronically, bring a copy of your orders including endorsements to your tax preparer.

Recreation Volunteer – R.S. 47:293(9)(a)(xii) provides an exclusion of $500 per tax year for individuals who volunteer for recreation departments. To qualify for this exclusion, the taxpayer must serve as a volunteer for 30 or more hours during the taxable year and must be registered as a volunteer with a recreation department operated by the state of Louisiana or a political subdivision of the state. The recreation department must certify that the taxpayer served as a volunteer and was not compensated for their services.

Volunteer Firefighter – R.S. 47:293(9)(a)(xii) provides an exclusion of $500 per tax year for individuals who serve as volunteer firefighters. To qualify for this exclusion, the taxpayer must complete 24 hours of continuing education and be an active member of the Louisiana State Fireman’s Association or on the departmental personnel roster for the State Fire Marshal’s Volunteer Fireman’s Insurance Program. To substantiate the exclusion, a taxpayer should retain either a membership card with the taxpayer’s name and the applicable tax year, a lifetime membership card, or a copy of the departmental personnel roster for the State Fire Marshal’s Volunteer Fireman’s Insurance Program and a certificate or other document provided to the taxpayer noting the date of the training, the topic covered, the duration of the training, and name and contact information of the person providing the training to support the continuing education requirements.

S Bank Shareholder Income Exclusion – R.S. 47:297.3 provides an exclusion for an S Bank shareholder for the portion of the income reported by an S Bank on Federal Form 1120S, Schedule K-1, or the portion of the income reported by an S Bank on an equivalent document, which is attributable to the net earnings used to compute the S Bank’s shares tax as provided in R.S. 47:1967. Attach a copy of Schedule K-1 as documentation for the amount excluded. This amount should be included in the amount on Schedule E, Line 1.