Louisiana 2009: Retirement Exclusion

The Louisiana Department of Revenue allows certain retirement benefits to be excluded from Louisiana income tax. Click here for the complete list.

Due to a potentially confusing screen in TurboTax (since removed), some taxpayers inadvertently excluded retirement income from state taxes that should have been taxable in Louisiana, causing a too-low tax liability.

If you are affected, you will need to file an amended Louisiana return and you will most likely owe additional tax on the formerly excluded income. Follow the directions below to find out if this issue affects you. 

First, find out if you are affected by this issue:

1. Look at the printed copy of your 2009 .
2. Louisiana return that you filed . Find the Louisiana form, as shown below,  that says Schedule E,  F, H and G at the top.

3.  Scroll down to Lines 4A – 4H, shown below. 

4. These lines show the retirement incomes that are not taxable by the state of Louisiana. If your retirement income is listed here, and is fully taxable by the state of Louisiana, the Louisiana return that you filed was incorrect. You need to amend this return.

1. Open your tax return in the TurboTax software, or sign in to your 2009 TurboTax Online return.
2. Click the Federal Taxes tab, and then click Wages & Income right below the tab. (TurboTax Home & Business: Click the Personal tab, and then click Personal Income right below the tab.)
3. On the Your Income or Your Personal Income screen, scroll down to the Retirement Plans and Social Security section.

4. Click the Update button to the right of the IRA, 401(k), Pension Plans (1099-R) topic.
5. On the Your 1099-R Summary screen, click Edit next to the first retirement income entry that is fully taxable to Louisiana.

6. Continue until you reach the Where Is This Distribution From? screen for the Louisiana distribution. Be sure that the box for None of the Above is checked.

Please follow these instructions to amend.