is teacher's retirement system of Louisiana taxable income?

[BillM223]

No, it's not.

Bu what you need to do is tell TurboTax the source of tis pension.

1. Make sure you have indicated Louisiana as your home state.

2. After you enter the 1099-R numbers, there should be a screen that asks what the source of this distribution is.

3. Make sure you indicate 03E – Louisiana State Teachers’ Retirement Benefits

Then when you go to the Louisiana state return, this amount will have been removed from state income.

[stbwestfall]

In the state form LA Schedule E then asks me the date of retirement, but it's an inherited account.  Neither the taxpayer nor spouse is retired.  I'm the beneficiary.

[MarilynG1]

Yes, in Louisiana, survivor or beneficiary benefits from the Teachers' Retirement System of Louisiana (TRSL) are exempt from state income tax, but they are subject to federal income tax.

In the Federal 1099-R entry, you would still indicate the source of the retirement income as 'Louisiana State or Local Government Pension' to get the exclusion in LA.  If asked how much of the distribution was RMD, indicate that the total distribution was RMD. 

LA should automatically exclude the income, and you shouldn't be asked for a retirement date, if your 1099-R has a Code D in Box 7. 

If you go back to the Federal 1099-R entry and change the 'Source' , your LA return will have the correct info.

@stbwestfall 

[Tlagarde]

If I am a beneficiary and I live outside of Louisiana, state taxes would still not be applicable, correct?

[SusanY1]

Louisiana taxes would not be, but taxes in the state where you live will depend on the laws of that state.  In which state do you currently reside?

[Tlagarde]

My state residence is Va.

[SusanY1]

Virginia does tax retirement income.  Therefore, if you were a resident for all of 2024, your Louisiana teacher's retirement income would be taxable by the Commonwealth of Virginia.