Louisiana Form Help

The following information has been provided to assist in the preparation of Louisiana state tax returns.

 

Form IT-540

 

File Form IT-540 if any of the following apply:

The taxpayer:

 1. Is a full year Louisiana resident

 2. Has Louisiana income tax withheld from wages

 3. Is required to file a federal income tax return

 

Residency

 

1. Resident:

   An individual:

   - Who thinks of Louisiana as his/her permanent home

   - Whose center of financial, social, and family life is Louisiana

   - Who intends to come back to Louisiana when away

2. Part-Year Resident:

   An individual who:

   - Moved into Louisiana during the year to maintain residence from another state or country

   - Moved out of Louisiana during the year to maintain residence in another state or country

3. Non-Resident:

   An individual:

   - Whose permanent home is outside of Louisiana all year

 

To avoid paying penalty and interest:

 - File the return and pay the tax due by the extended due date

Late Payment Penalty

 

If any state taxes due are paid after May 15, 2015, the taxpayer will owe an additional amount for a late payment penalty from May 15, 2015 to the date of payment. The penalty rate is 0.5% for each 30 days during which the failure to pay continues, the maximum penalty is 25%.

Late Filing Penalty

 

If the Louisiana individual income tax return is not filed by October 15, 2015, the taxpayer will owe an additional amount for a late filing penalty. The penalty rate is 5% of the tax due, the maximum penalty is 25%.

Interest

 

Interest applies on delinquent tax from the original due date of the return until the tax is paid even if an extension of time is granted. Interest is computed at the rate of 1.041% per month.

Form IT-540B

 

File Form IT-540B if any of the following apply:

The taxpayer:

 1. Is a nonresident or part-year resident and

 2. Has gross income from Louisiana sources

Residency

 

1. Resident:

   An individual:

   - Who thinks of Louisiana as his/her permanent home

   - Whose center of financial, social, and family life is Louisiana

   - Who intends to come back to Louisiana when away

2. Part-Year Resident:

   An individual who:

   - Moved into Louisiana during the year to maintain residence from another state or country

   - Moved out of Louisiana during the year to maintain residence in another state or country

3. Non-Resident:

   An individual:

   - Whose permanent home is outside of Louisiana all year

 

To avoid paying penalty and interest:

 - File the return and pay the tax due by the extended due date

Late Payment Penalty

 

If any state taxes due are paid after May 15, 2015, the taxpayer will owe an additional amount for a late payment penalty from May 15, 2015 to the date of payment. The penalty rate is 0.5% for each 30 days or fraction thereof. The maximum penalty is 25%.

 

Late Filing Penalty

 

If the Louisiana individual income tax return is not filed by October 15, 2015, the taxpayer will owe an additional amount for a late filing penalty. The penalty rate is 5% for each 30 days or fraction thereof. The maximum penalty is 25%.

Interest

 

Interest applies on delinquent tax from the original due date of the return until the tax is paid even if an extension of time is granted. The interest is computed at 1.041% per month.

 

Schedule F/G

 

File Schedule F/G to report the following credits:

 - Credit for taxes paid to another state

 - Credit for certain disabilities

 - Credit for contributions to educational institutions

 - Credit for certain federal credits

 - Child care credit

 - Other credits

 - Refundable tax credits and payments

 

 

Credit for Taxes Paid to Another State

 

Residents of Louisiana are allowed a credit for the net income taxes properly paid to another state of the United States. No credit may be claimed for taxes paid to cities, the District of Columbia, or foreign countries. A copy of the return filed with the other state must be attached to the Louisiana return.

Credit for Certain Disabilities

 

A credit of $100 is permitted for the taxpayer, spouse, or dependent who is blind, deaf, mentally incapacitated, or has lost the use of a limb.

 

NOTE:  Only one credit is allowed per person.

 

If the taxpayer is claiming this credit for the first time, a physician's statement certifying the disability is required.

Credit for Contributions to Educational Institutions  

 

Taxpayers who donate computer equipment to educational institutions are allowed a credit of 40% of the value of the property donated. The recipient must certify the donation or contribution of property by using the Certificate of Donation, Form R-3400. The completed certification must be attached to the taxpayer's tax return.

 

Special Allowable Credits

 

Taxpayers are allowed a credit of 10% of the credits taken on Lines 47 and 49 on federal Form 1040, plus 10% of any investment tax credit or jobs credit computed on federal Form 3800.

Other Credits

 

Other credits include the following:

 - Family Responsibility Program Credit

 - Credit for investment in LA Capital Companies

 - Credit for a donation of at least $200,000 to a Dedicated

   Research Investment Fund

 - Credit for hiring the previously unemployed

 - Credit for conversion of vehicles to alternative fuels

 - Credit for doctors affiliated with small town community hospitals

 - Credit for a dentist who maintains a primary practice in a dental health professional shortage area

 - Credit for providing employee's basic high school skills

 - Credit for gasoline and special fuels taxes paid for commercial fishing boat

 - Bone Marrow donor program credit

 - Credit for pursuit of undergraduate degree related to law enforcement for certain people

 - Credit for employment of certain first-time drug offenders

 - Credit for purchase of bulletproof vest for certain individuals

 - Credit for donations of materials, equipment, advisors, or instructors made to training providers, vocational/technical schools, apprenticeship programs registered with the LA Deptartment of Labor, or community colleges within the state

 - Credit for donations to assist Qualified Playgrounds

 - Credit for employment-related expenses for maintaining a household for certain disabled dependents

 - Losses from investments in motion pictures with substantial Louisiana content

 - Employment tax credit for motion picture production companies that employed Louisiana citizens

 - Credit for rehabilitation of a historic structure located in a downtown development district

 - Credit for certain qualified low-income community investments

 - Louisiana Quality Jobs Program Credit

 - Enterprise Zone Exemption Credit

 - Biomedical Research and Development Park

 - Manufacturing Establishments

Schedule F/G Nonresident

 

File Schedule F/G NR to report the following credits:

 - Credit for certain disabilities

 - Credit for contributions to educational institutions

 - Credit for certain federal credits

 - Child care credit

 - Other credits

 - Refundable tax credits and payments

Credit for Certain Disabilities

 

A credit of $100 is permitted for the taxpayer, spouse, or dependent who is blind, deaf, mentally incapacitated, or has lost the use of a limb.

 

NOTE:  Only one credit is allowed per person.

 

If the taxpayer is claiming this credit for the first time, a physician's statement certifying the disability is required.

Credit for Contributions to Educational Institutions

 

Taxpayers who donate computer equipment to educational institutions are allowed a credit of 40% of the value of the property donated. The recipient must certify the donation or contribution of property by using the Certificate of Donation, Form R-3400. The completed certification must be attached to the taxpayer's tax return.

Special Allowable Credits

 

Taxpayers are allowed a credit of 10% of the credits taken on Lines 46 and 48 on federal Form 1040, plus 10% of any investment tax credit or jobs credit computed on federal Form 3800.

Other Credits

 

Other credits include the following:

 - Family Responsibility Program Credit

 - Credit for investment in LA Capital Companies

 - Credit for a donation of at least $200,000 to a Dedicated

   Research Investment Fund

 - Credit for hiring the previously unemployed

 - Credit for conversion of vehicles to alternative fuels

 - Credit for doctors affiliated with small town community hospitals

 - Credit for a dentist who maintains a primary practice in a dental health professional shortage area

 - Credit for providing employee's basic high school skills

 - Credit for gasoline and special fuels taxes paid for commercial fishing boat

 - Bone Marrow donor program credit

 - Credit for pursuit of undergraduate degree related to law enforcement for certain people

 - Credit for employment of certain first-time drug offenders

 - Credit for purchase of bulletproof vest for certain individuals

 - Credit for donations of materials, equipment, advisors, or instructors made to training providers, vocational/technical schools, apprenticeship programs registered with the LA Deptartment of Labor, or community colleges within the state

 - Credit for donations to assist Qualified Playgrounds

 - Credit for employment-related expenses for maintaining a household for certain disabled dependents

 - Losses from investments in motion pictures with substantial Louisiana content

 - Employment tax credit for motion picture production companies that employed Louisiana citizens

 - Credit for rehabilitation of a historic structure located in a downtown development district

 - Credit for certain qualified low-income community investments

 - Louisiana Quality Jobs Program Credit

 - Enterprise Zone Exemption Credit

 - Biomedical Research and Development Park

 - Manufacturing Establishments

Schedule E

 

Schedule E must be filed if the taxpayer is a resident and has:

a) exempt income

b) interest income from obligations of other states and their political subdivisions

c) annual retirement income taxable to Louisiana and is 65 or older

 

NOTE:  If one taxpayer on a joint return is a nonresident, do not use Schedule E. Form IT-540B must be used to determine the amount of Louisiana income.

Retirement Income

 

Six thousand dollars ($6,000) of annual retirement income that is received by persons 65 or over is exempt from state taxation.

 

Annual retirement income is pension and annuity income reported on federal Form 1040, lines 15b and 16b.

Other Income

 

List the source and amount of other income included in Line 1 of Schedule E that Louisiana cannot tax. Do not list income earned in another state. Residents of Louisiana are taxed on all income regardless of where it was earned. Credit for taxes paid may be deducted on Schedule G, line 1.

Disabled individuals claiming a deduction for making adaptations to their home should use this line to deduct the expenses from their gross income.

START Savings Program Contribution

 

Taxpayers may exempt up to $2,400 of income from their Louisiana income tax for each START account owned per taxable year.

Form IT-540ES

 

File Form IT-540ES to pay Louisiana income tax liability not prepaid through withholding.

 

File Form IT-540ES if all of the following apply:

The taxpayer:

1. Does not have at least 90% of his/her annual Louisiana income tax liability prepaid through withholding

2. Has an annual tax liability that exceeds $1,000 ($2,000 if MFJ)

Exceptions

 

Farmers and fishermen - If at least two thirds of your gross income for 2015 is from farming or fishing you may

   a. Pay all of your estimated tax by January 15, 2016, or

   b. File your 2015 income tax return by March 1, 2016 and pay the total tax due. In this case, estimate payments are not required.

Interest

 

Underestimating the required amount of tax or failure to file estimated tax returns and pay the tax within the time allowed will result in an assessment of interest. The interest rate is 12% per year for the period of underpayment on the difference between the installment payment made and 90% (66 2/3 for farmers) of the installment due on the basis of the tax for the year.

Form R-2868

 

File Form R-2868 to request up to a six month extension of time to file the Louisiana individual income tax return.

 

If the taxpayer expects to owe additional tax, all of the state taxes due must be paid with Form R-2868 by May 15, 2015.

Late Payment Penalty

 

If any state taxes due are paid after May 15, 2015, the taxpayer will owe an additional amount for a late payment penalty from May 15, 2015 to the date of payment. The interest rate is 15% per annum. A late payment penalty of up to 25% may also be imposed.

 

NOTE: Form R-2868 only extends time to file the Louisiana individual income tax return. It does not extend the due date for payment of Louisiana income taxes due.

 

If the taxpayer received an extension to file the federal tax return for this period, a separate extension is not needed for filing the state return. Louisiana will recognize and accept the federal extension authorizing the same extended due date as the federal.

Form LA 8453

 

To ensure that taxpayer comply with Louisiana tax laws, Form LA 8453 must be completed. Practitioners must keep the original Form LA 8453 and the required attachments for three years and make them available to the department upon request.

 

Attach the following items to Form LA 8453:

- W-2s, W-2Gs, 1099-Gs, and 1099s

- Copy of other state's return and proof of payment if claiming credit for income taxes paid to other state.

 

The taxpayer's signature is required for all returns. If the electronic return originator (ERO) changes the electronic return after Form LA 8453 has been signed by the taxpayer but before it is transmitted, the taxpayer must complete and sign a corrected Form LA 8453.