Louisiana Basic Instructions
p>In preparing the state tax return, most information will carry from the federal return. The income and withholding will carry to the state from entries on the W-2. Be sure the state information has been entered on the W-2 input screen. Other income items will carry from the federal input according to the state designated.
If you have additional information to enter, click on the 'tax forms' button. Input for all the state forms is available.
Not Required to File Federal Return
If you are not required to file a federal return but had Louisiana income tax withhled in 2007, you must file a return to claim a refund of the amount withheld.
Name or Address Change
If there is a change in your name or address since last year's return (for example, new spouse), please check the appropriate box.
Credits
Louisana allows for a certain percentage of your Federal Child Care Credit to be claimed as a credit against you Louisiana individual income tax. In order to take this credit, you must have claimed the federal credit either on Federal Form 1040 or on Federal Form 1040A. The provisions that govern the child care credit allow for the credit to be either refundable or nonrefundable. In order for the credit to be refundable, your Federal AGI must be $25,000 or less. If your Federal AGI is greater then $25,000, you may be entitled to a nonrefundable credit for 2007, which can be carried forward for five years if you are unable to claim the nonrefundable credit in the year in which it was earned. TaxEngine will calculate the child tax credit. The only entry required is prior year child tax credit carryover.
Consumer Use Tax
Under Louisiana law, the Department is required to collect a use tax rate of 8 percent on out-of-state use taxable purchases. This 8 percent rate (which includes 4 percent to be distributed by the Department to local governments) is in lieu of the actual rate in effect in your area, and is payable regardless of whether the actual combined state and local rate in your area is equal to, higher then, or lower than 8 percent. Enter the total amount of taxable purchases. TaxEngine will calculate the tax.
Part-Year Resident
You are considered a part-year resident of Louisiana if, during 2007, you moved your permanent home into or out of Louisiana. You must pay Louisiana income tax on income you earned, received or accrued while living in Louisiana. You must prepare a IT-540B to allocate your income to Louisiana and other states.
TaxEngine will automatically allocate the income based on the information entered on the federal return. Be sure to enter the state information on the federal W-2 input form.
Nonresident
If you are a resident of another state and worked in Louisiana during 2007, you are required to file a Louisiana income tax return (IT-540B) and are required to pay Louisiana income tax on salary wages and other employee compensation for work performed in Louisiana.
If you are a Louisiana resident but worked in another state, all of your income is subject to tax, no matter where it is earned, except income earned from out-of-state business activity.