The Official Website of the Louisiana Department of Revenue
Returns and payments are due on or before May 15 of the following year. For fiscal year taxpayers, returns and payments are due on the 15th day of the fifth month after the close of the fiscal year.
The tax is determined using tax tables furnished by the Department of Revenue. The tax rate is applied in a graduated scale using the taxpayer’s filing status and the taxpayer’s Louisiana taxable income. Recent changes to the tax rate are reflected as follows:
Revised Statute 47:103 allows a six-month extension of time to file the individual income tax return to be granted on request. The extension request must be made before the state tax filing due date, which is May 15 for calendar year filers or the 15th day of the fifth month after the close of a fiscal year.
In the past, taxpayers who were granted automatic federal extensions were allowed the same state income tax filing extension if a copy of the federal extension IRS Form 4868 was attached to the front of their state tax return. Beginning with the 2008 income tax year, taxpayers will be required to either request a specific state individual income tax filing extension or submit a copy of their Federal Application for Automatic Extension of Time To File U.S. Individual Income Tax Return on or before the May 15 due date. Copies of federal extensions attached to the tax return and received after the May 15 due date will not be accepted.
This new requirement is the result of changing technologies and processing procedures that make the recording of federal extensions unreliable.
The four options for requesting an extension are outlined in Revenue Information Bulletin No. 09-005 as follows:
An extension does not allow an extension of time to pay the tax due. Payments received after the return due date will be charged interest and late filing penalty.
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Resident taxpayers who are required to file a federal individual income tax return are required to file a Louisiana income tax return, IT-540 reporting all of their income. If a Louisiana resident earns income in another state, that income is also taxable by Louisiana. A temporary absence from Louisiana does not automatically change your domicile for individual income tax purposes. As a resident taxpayer, you are allowed a credit on Schedule G for the net tax liability paid to another state if that income is included on the Louisiana return.
Residents may be allowed a deduction from taxable income of certain income items considered exempt by Louisiana law. For example, Louisiana residents who are members of the armed services and who were stationed outside the state on active duty for 120 or more consecutive days are entitled to a deduction of up to $30,000. In each case, the amount of income subject to a deduction must be included on the Louisiana resident return before the deduction can be allowed.
Nonresident and part-year resident taxpayers who are required to file a federal individual income tax return are required to file a Louisiana income tax return, IT-540B reporting all income earned from Louisiana sources. The calculation for the IT-540B requires that a taxpayer report all income from all sources in order to determine a ratio of Louisiana adjusted gross income to Federal adjusted gross income. Only income earned from Louisiana sources, however, is taxed.
Gambling winnings earned in Louisiana is considered to be Louisiana sourced income. A nonresident who received gambling winnings from Louisiana sources and who is required to file a federal income tax return must file a Louisiana return reporting the Louisiana income earned. If the amount withheld is overpaid, a refund of the difference will be issued or credited to the tax liability for the following year, based upon the taxpayer’s return.
Military personnel whose domicile (home of record) is not Louisiana are not required to file a Louisiana income tax return on the wages earned from the military. Military personnel who earned nonmilitary income from Louisiana sources or whose spouse earned income from Louisiana sources are required to file a Louisiana income tax return reporting the amount of Louisiana income.
Nonresident and part-year resident taxpayers use the Tax Computation Worksheet to calculate the amount of Louisiana tax due based on the amount of their Louisiana taxable income. The Tax Computation Worksheet allows a deduction for a Personal Exemption based on filing status. A credit of $1,000 for each dependent and for each taxpayer and/or spouse whose age is 65 and over, or who is blind, is applied in determining the amount of tax.
A nonresident individual who is a member of the following associations is considered a professional athlete and is required to file a Louisiana income tax return, IT-540B-NRA reporting all income earned from Louisiana sources:
Income from Louisiana sources include compensation for the services rendered as a professional athlete and all income from other Louisiana sources, such as endorsements, royalties, and promotional advertising. The calculation of income from compensation is based on a ratio obtained from the number of Louisiana Duty Days over the total number of Duty Days. Duty Days is defined as the number of days that the individual participated as an athlete from the official preseason training through the last game in which the individual competes or is scheduled to compete.
Nonresident professional athlete taxpayers use the Tax Computation Worksheet to calculate the amount of Louisiana tax due based on the amount of their Louisiana taxable income. The Tax Computation Worksheet allows a deduction for a Personal Exemption based on filing status. A credit of $1,000 for each dependent and for each taxpayer and/or spouse whose age is 65 and over, or who is blind, is applied in determining the amount of tax.
Taxpayers must make a declaration of estimated income tax and pay estimated tax payments if their estimated Louisiana income tax after credits and taxes withheld is expected to exceed $1,000 for single filers and $2,000 for joint filers as required by Revised Statute 47:116. To calculate the estimated tax, resident taxpayers should use the current year’s Income Tax Tables to estimate their income tax liability based on the expected amount of Louisiana taxable income. Taxpayers who are nonresidents or part-year residents should use the Tax Computation Worksheet to calculate the amount of Louisiana estimated tax. For general information concerning calculation and payment of estimated tax, see the estimated payment instructions, Form IT-540ES(I). Calendar year taxpayers can pay the estimated tax in full with the declaration, or in equal installments, on or before April 15, June 15, September 15, and January 15.
Special Provisions for Farmers or Fishermen— Revised Statute 47:117(B) provides that if at least two-thirds of an individual’s estimated gross income is from farming or fishing, the declaration and estimated tax payment may be made any time on or before January 15 of the succeeding taxable year without being assessed underpayment of estimated tax penalty.
Exception To Estimated Payment Declaration Requirement—Revised Statute 47:116(F) allows an exception for taxpayers required to pay estimated taxes if the taxpayer files their income tax return on or before January 31st of the succeeding year, or March 1st of the succeeding year for qualified farmers and fishermen, for the taxable year for which the declaration was required. The taxpayer is also required to pay the full tax amount due at the time of filing. Taxpayers who comply with this requirement will not be assessed estimated tax underpayment penalty.
Estimated Tax Payment Options— Taxpayers can pay the estimated tax using any of the following options:
Revised Statute 47:118 authorizes a penalty for failure to pay or underpayment of estimated income tax. The penalty is 12 percent annually of the underpayment amount for the period of the underpayment.
Determination Of The Underpayment Amount
Determination Of The Underpayment Period—The underpayment period is from the date the installment was required to be paid to whichever of the following dates is earlier:
Penalty Exceptions—The underpayment of estimated tax penalty will not be imposed on any installment if no declaration of estimated tax is required to be filed because the taxpayer did not reasonably expect for their taxes to exceed $1,000 for single filers and $2,000 for joint filers as required by Revised Statute 47:116(A), or if the total amount of all estimated tax payments made on or before the last date prescribed for the payment of the installment equals or exceeds the lesser of the following:
Notification Of Underpayment Of Estimated Tax Penalty
When an individual income tax return is filed with a payment in excess of $1,000 for single filers and $2,000 for joint filers, the taxpayer will be notified of the requirement to file an estimated tax declaration and pay the estimated tax.
Based on the underpayment amount and the underpayment period, an assessment of underpayment of estimated tax penalty will be made.
Request for Penalty Waiver
Taxpayers may request that the penalty be waived. The request must be made within one year from the tax return’s due date including any applicable extensions. If it can be determined that the individual acted in good faith and the failure to make the estimated payments was attributable to extraordinary circumstances beyond the individual's control or that the individual made a declaration and paid estimated tax in accordance with R.S. 47:116, 117, and 117.1 before the due date of the return without regard to any extension of time.
If it is determined that the individual acted with intentional disregard for the state laws, the request for penalty waiver will be denied.
