In 2022, Louisiana lowered income tax rates from 2%, 4%, & 6% down to 1.85%, 3.5%, & 4.25%. To offset, they eliminated the deduction for federal income tax liability. For most filers, this should result in roughly a "push." It appears that TurboTax has appropriately eliminated the deduction for federal income tax liability, but it also appears that the new tax tables (1.85%, 3.5%, 4.25%) have NOT been updated. I have been staring at a rather large state tax liability due (according to TurboTax), but when I take my total state income and drop into it into Excel, it appears that liability is a result of using the old rates. When I adjust the rates in Excel, the numbers return to closer to what my withholdings + estimated payments equal. When I perform the same function against my 2021 results, it seems to confirm that the new rates are not being used in TurboTax 2022. I'm sure that these will be adjusted in a forthcoming update to TurboTax' Louisiana plug-in. However, can anybody else confirm that this has been their experience?
for state form availability.
The program most likely has not been fully updated with the latest information.
for state form availability.
The program most likely has not been fully updated with the latest information.
Correct, tagteam. The State of Louisiana website does not even have the 2022 instructions and forms available yet, so TurboTax would not have updated the software yet.
I encountered the same issue but now that the state has the forms on it's website, I entered the info in Excel and came up with a significantly lower tax liability. I realize that Turbo Tax indicates not all state forms are updated but if that is the case, then do not allow anyone to start the state tax return until everything is in place appropriately - just my opinion.