"So, Why was my retired wife's income submitted as taxable income?"
You do not say where you are seeing your wife's income shown as taxable income. If she is now retired and she is receiving her teacher's retirement pension, that pension is taxable income on her federal return--as would Social Security be taxable. The pension income would be on a 1099R that you enter into your federal return. Information flows from the federal return to the state return, so when the income flows to your LA return, the software will use all of your state's tax laws to treat it as taxable or not taxable for the state of LA.
**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**
