According to the Louisiana Filing Instructions, all Louisiana sourced income must be reported on a Louisiana return regardless of where it is earned.
If you are a resident of Louisiana, you must file a resident return and claim all of your active duty pay on the return regardless of where you were stationed. Louisiana active duty residents stationed outside of Louisiana for 120 or more consecutive days can deduct up to $50,000 of active duty pay from their resident return.
To claim the exclusion, perform the following steps in the program:
- State
- Louisiana Resident Return
- Subtractions From Income
- Other Subtractions
- Select Other Exempt Income and enter the deduction amount below
- Select 10E - Military Pay Exclusion - Up to $50,000
- Enter Other Exempt Income deduction from above - enter amount of military pay that can be excluded
- Save
See instructions for 10E - Military Pay Exclusion found here for calculation rules.
If you are a nonresident of Louisiana, stationed in Louisiana you must report any nonmilitary income on a Louisiana nonresident return. Active duty military pay is not taxable to Louisiana nonresidents. If your only source of income in Louisiana is your active duty pay, you are not required to file a return.
To deduct the active duty nonresident military pay from the return, follow the steps below in the program:
- State
- Nonresident Louisiana Return
- Subtractions From Income
- Enter the portion of Military Pay Exclusion attributable to Louisiana
- Enter amount of military active duty pay
- Save
If one spouse is a resident of Louisiana and the other is not, you can file either a resident or nonresident return; whichever is more beneficial. If you file a resident return, you can take a credit for taxes paid to the other state on the non-military income or income included on the Louisiana return that has not been subtracted (such as military spouse).