Am I required to file a Louisiana tax return?

WHO MUST FILE A RETURN

1. If you are a Louisiana resident who is required to file a federal individual income tax return, you must file a Louisiana income tax return reporting all income earned in 2021.

2. You must file a return to obtain a refund or credit if you overpaid your tax through withholding, declaration of estimated tax, credit carried forward, or by claiming a 2021 refundable child care credit, or a Louisiana earned income credit.

3. If you are not required to file a federal return but had Louisiana income tax withheld in 2021, you must file a return to claim a refund of the amount withheld. Refer to the IRS requirements for filing in order to determine if you must file a federal return. For additional information, see the NOTE on page 1.

4. Military – If you are military personnel whose home of record is Louisiana and you meet the filing requirements of 1 or 2 above, you must file a return and report all of your income, regardless of where you were stationed. If you are single, you should file Form IT-540, Louisiana Resident Individual Income Tax Return, reporting all of your income to Louisiana. If you are married and both you and your spouse are residents of Louisiana, you should file Form IT-540 reporting all of your income to Louisiana. Any military personnel whose domicile is NOT Louisiana must report any nonmilitary Louisiana sourced income on Form IT-540B, Louisiana Nonresident Individual Income Tax Return. The federal Military Spouses Residency Relief Act has extended certain residency protections to spouses of military members. Under this Act, a spouse’s state of residence does not change when he or she moves to a new state to be with a servicemember who is under military orders to be in the new state. A spouse who is NOT a resident of Louisiana but is in Louisiana solely to be with a Louisiana stationed servicemember who is NOT a resident of Louisiana must report all Louisiana sourced income other than wages, interest, or dividends, on Form IT-540B. Income earned within or derived from Louisiana sources such as rents, royalties, estates, trusts, or partnerships is taxable to Louisiana. See Revenue Information Bulletin 10-005 for more information. If you are married and one of you is not a resident of Louisiana, you may file as a resident (Form IT-540) or a nonresident (Form IT-540B), whichever is more beneficial to you and your spouse. Resident taxpayers are allowed a credit for income tax paid to another state on nonmilitary income or on income earned by your spouse if that income is included on the Louisiana return. Use Nonrefundable Priority 1 Credits, Schedule C, Line 1 to report taxes paid to another state. Louisiana residents who are members of the armed services and were stationed out-of-state for 120 or more consecutive days on active duty may be entitled to an exemption of up to $30,000 of military income. See the instructions for Schedule E, Code 10E.

5. Professional Athletes – Louisiana Administrative Code (LAC) 61:III.1527 requires all professional athletes that participate in athletic events within Louisiana to file all tax returns, including extension requests, electronically. Nonresident professional athletes must file Form IT-540B-NRA, Louisiana Nonresident Professional Athlete Individual Income Tax Return, electronically.

6. A temporary absence from Louisiana does not automatically change your domicile for income tax purposes. You must confirm your intention to change your domicile to another state by actions taken to establish a new domicile outside of Louisiana and by actions taken to abandon the Louisiana domicile and its privileges. Examples of establishing a domicile include registering to vote, registering and titling vehicles, obtaining a driver’s license, changing children’s school of attendance, obtaining a homestead exemption, or any other actions that show intent to establish a new domicile outside of Louisiana. These are intended as examples and do not necessarily indicate a change in domicile. You are considered to be a Louisiana resident if you continue to maintain a residence in Louisiana while working in another state. Use Nonrefundable Priority 1 Credits, Schedule C, Line 1 to report taxes paid to another state.

7. Surviving Spouses, Executors, Administrators, or Legal Representatives – A final return for a decedent must be filed if you are the surviving spouse, executor, administrator, or legal representative, and the decedent met the filing requirements at the date of death. If both conditions apply, mark the decedent box on the face of the return for the appropriate taxpayer and attach a copy of the death certificate. If a refund is due to the decedent’s estate, survivor, etc., you must also complete and attach Form R-6642, Statement of Claimant to Refund Due on Behalf of Deceased Taxpayer.