topic Thank you Cindy in Retirement tax questions

As a retired Louisiana state employee, I am exempt from paying state income taxes. Where do I enter this info on my returns?

bobbie-deloney — Tue, 04 Jun 2019 23:44:27 GMT

Lousiana does not tax you on retirement income as a state...

Cindy0H — Tue, 04 Jun 2019 23:44:28 GMT

Lousiana does not tax you on retirement income as a state employee. This is how you enter the 1099R:

Federal
Income & Wages
Retirement & Social Security
Pension Plans (1099-R)..start or update
Enter or edit your 1099R
Make sure Box 13 has LA in it...continue
Where this Distribution is from (see screenshot)..check the correct one
Answer the rest of the questions

If you have other questions about this, ask in the comment box below.

Thank you Cindy

bobbie-deloney — Tue, 04 Jun 2019 23:44:30 GMT

Thank you Cindy

Re: Lousiana does not tax you on retirement income as a state...

ZZ_Blonde — Sun, 02 May 2021 16:42:34 GMT

I am trying to enter income from the Municipal Police Employee's Retirement System in the turbo tax software so that it is exempt on the LA tax return. I have entered all the information straight off the 1099-R and in the state section I have entered La as the issuing state, LA as the state number (none is shown on the 1099-R form) and 0. as the taxable income for LA. These are all blank on the 1099-R. On the LA form in turbo tax it is showing this as taxable income just as it is on the federal form. What do I need to do differently? I tried the turbo tax chat online and the guy was not helpful. Not sure he understood what I was asking.

Re: Thank you Cindy

DaveF1006 — Wed, 05 May 2021 03:44:58 GMT

First of all, don't enter any information in the State section of the 1099R if nothing is listed. If they are blank, leave blank. To exclude it as taxable income, you will need to do this in the state portion of your return.

Log into Turbo Tax
If online, select state in the left pane of your return, and begin working on your Louisiana state return. if using the software, just select the state tab and begin working in your LA return.
As you scroll through the screens, the program will ask if there are any other income exclusions. Here you will select the drop-down and make a selection and then the full taxable amount of the 1099R. Here is a screenshot what that screen looks like.
Note, read the selections in the drop-down carefully to determine which retirment income you are excluding are most applicable to you.

Re: As a retired Louisiana state employee, I am exempt from paying state income taxes. Where do I enter this info on my returns?

Williatj1962 — Mon, 11 Apr 2022 13:49:42 GMT

When I enter the income exclusion as Louisiana employer retirement benefit it says it was already deducted and takes the amount away. Still not giving me the exemption

Re: As a retired Louisiana state employee, I am exempt from paying state income taxes. Where do I...

DaveF1006 — Wed, 13 Apr 2022 01:15:14 GMT

If possible, can you send us a diagnostic so we can see how this is treated in your return? The diagnostic will send us a "sanitized" version of your return, which removes all personal identifying information and all we see are numbers in the forms in your return.

To send if you are using Turbo Tax online, go to tax tools>tools>send tax file to agent. When you select that, it will give you a token number to give to us. Tell us what that token number is.

If you are using Windows Desktop, select the online button at the top>send tax file to agent. This will also bring up a token number.

Once you receive your token number, please let me know @DaveF1006 so we can look at your return in detail.

Re: As a retired Louisiana state employee, I am exempt from paying state income taxes. Where do I...

Williatj1962 — Sat, 16 Apr 2022 14:55:14 GMT

I have a ticket # but will not let me reply directly to DaveF1006

# is 1008876

Re: As a retired Louisiana state employee, I am exempt from paying state income taxes. Where do I...

FangxiaL — Sat, 16 Apr 2022 15:38:57 GMT

When you entered your 1099-R, make sure the IRA/SET/SIMPLE box is not checked, in Box 15, enter Louisiana as the state. You should come to a screen as shown below. It should be state income tax exempt.

@Williatj1962

Re: Thank you Cindy

lwalden — Mon, 12 Feb 2024 15:47:11 GMT

You can also use item 24 for the exclusion

Re: Lousiana does not tax you on retirement income as a state...

PDaddy — Sun, 14 Apr 2024 19:06:25 GMT

Box 13 is a date box.

Re: As a retired Louisiana state employee, I am exempt from paying state income taxes. Where do I...

JamesG1 — Sun, 14 Apr 2024 20:25:08 GMT

When the IRS form 1099-R is entered, you should see this screen. Select the appropriate code for the distribution.

Learn more states:

If you are age 65 or older, Louisiana deducts up to $6,000 ($12,000 if Married Filing Jointly and both of you qualify) of your other taxable retirement income.

Re: As a retired Louisiana state employee, I am exempt from paying state income taxes. Where do I...

PDaddy — Mon, 15 Apr 2024 22:37:35 GMT

The retirement pension was entered properly in the federal return but not deducted from the AGI in the Louisiana return.

Re: As a retired Louisiana state employee, I am exempt from paying state income taxes. Where do I...

BillM223 — Mon, 15 Apr 2024 22:41:25 GMT

@PDaddy

Did you read James' answer? Did you see the screen he pointed out? This is how you remove the pension from Louisiana state income.

Re: As a retired Louisiana state employee, I am exempt from paying state income taxes. Where do I...

PDaddy — Tue, 16 Apr 2024 01:43:44 GMT

Yes I did. The software did not work as shown or advertised. I had to revise my 2022 and 2023 LA income tax because of this software glitch. I also had to correct LA tax return for a family member as well. The aggravating thing is that TurboTax verified the problem but would not correct my returns.

Re: As a retired Louisiana state employee, I am exempt from paying state income taxes. Where do I...

BillM223 — Tue, 16 Apr 2024 02:48:35 GMT

First, on your My Info/Personal info, do you indicate that you were a Louisiana resident?

Second, in the interview after the 1099-R, did you see this screen?

Third, in your state return, did you see the following?

Are you seeing something different?

Re: As a retired Louisiana state employee, I am exempt from paying state income taxes. Where do I...

PDaddy — Fri, 19 Apr 2024 19:11:37 GMT

Look,

All the proper information was provided on the appropriate screens including the state and the information provided on the 1099-R. A TurboTax professional verified that the required information was not transferred to the Louisiana Tax Schedule E for both my 2022 and 2023 taxes. Again, denial of the problem with the software does not make it untrue. I know what I entered and what was not transferred to the state return. Own it!

Re: As a retired Louisiana state employee, I am exempt from paying state income taxes. Where do I...

PDaddy — Fri, 19 Apr 2024 19:18:05 GMT

Also, the information that was not transferred to Schedule E on the state tax return was manually entered on the state tax return but TurboTax software removed the entry saying it was previously entered and take into account when in fact it was not. This was also verified by the TurboTax professional. It is most frustrating when there is a programing error that is clearly identified is denied to save face.

Re: As a retired Louisiana state employee, I am exempt from paying state income taxes. Where do I...

DawnC — Fri, 19 Apr 2024 22:27:26 GMT

You enter the 1099-R on the federal return. Then, when you go through the LA return, you enter only the exclusion amount. The excluded amount remains on your federal return but gets subtracted out to calculate LA taxable income on Line 8D. The information for line 8D comes from the Louisiana Adjustments to Income, Schedule E. So, if the amount is on that schedule, it was excluded from Louisiana taxable income and thus no LA tax paid. @PDaddy

Re: Lousiana does not tax you on retirement income as a state...

mblr8065 — Thu, 13 Feb 2025 21:30:37 GMT

Then why do I have to pay $309 state tax this year? I’ve never had to pay state tax before