Louisiana taxpayers who file a Federal tax return are required to file a state return. If you are a nonresident or part-year resident, you will be taxed on any income earned in the state, and will need to file IT-540B. In order to calculate the appropriate amount of taxes on the IT-540B, you have to report all income regardless of where was earned. You will only be taxed on the amount of adjusted gross income derived from compensation within Louisiana.

If you have won money gambling in the state, it is considered to be income sourced from Louisiana. Taxpayers who are nonresidents have to file a Louisiana state income tax return reporting all gambling winnings when won in-state. If you overpay, you are eligible to receive a refund, or a credit for the next year’s taxes based on your current return.

Military personnel who were stationed in Louisiana but are not domiciled there, meaning they are considered a permanent resident of another state, are not required to file a Louisiana return for any military income earned in-state. However, income earned from nonmilitary sources, or income their spouse earns, is subject to Louisiana income tax and must be reported.

Taxpayers who are considered nonresidents or part-Year residents of Louisiana should use the tax computation worksheet to determine their tax liability to the state. This worksheet accounts for personal exemptions related to filing status. Taxpayers may be eligible for a credit of $1,000 for each dependent, as well as themselves or their spouse who are over the age of 65 or blind. This credit can lower your tax liability.