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.
Refer to the instructions for 10E - Military Pay Exclusion, available 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 for Louisiana nonresidents. If your only source of income in Louisiana is your active duty pay, you are not required to file a return.
Program Entry
- State Section
- Edit Louisiana Return
- Subtractions From Income
- Other Subtractions
- Military Pay Exclusion - Up to $50,000
- "Enter the exempt income amount" - Enter the amount of military pay that can be excluded
- Select "Continue" to 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).