The Official Website of the Louisiana Department of Revenue
BATON ROUGE – Military compensation earned outside the state by Louisiana residents is exempt from state individual income tax under certain conditions, according to Revenue Secretary Cynthia Bridges.
“If a state resident, and/or the spouse, has served 120 or more consecutive days on active duty outside the state as a member of the United States armed forces, then any compensation totaling less than $30,000 paid to them by the armed forces while outside Louisiana is exempt from state income tax,” Bridges says. This military pay exclusion was passed as Act 34 by the 2000 Regular Session of the Louisiana Legislature and is in effect for the 2003 and 2004 tax years.
Bridges says the exclusion is included as a line item on Schedule E (Adjustments to Income) of this year’s state income tax return. When filing their return, qualifying taxpayers should attach a copy of their official orders, including endorsements, as proof of their 120 plus consecutive days of out-of-state duty.
“It is important to note that the 120 days of service outside the state must be consecutive,” Bridges points out. “If someone serves 40 days in Louisiana and then leaves the state on active duty for 120 or more days, then the income received for the first 40 days is taxable, whereas all compensation up to $29,999 from the 41st day forward is exempt from state income tax.”
Taxpayers with questions about the military pay exclusion may contact any of the Taxpayer Services Division at the Baton Rouge Headquarters Office, 617 N. Third St, and (225) 219-7318. They may also contact any of the following regional offices: Alexandria, 201 Johnson Street, Suite 100, (318) 487-5333; Baton Rouge (Regional Office), 8549 United Plaza Blvd., Suite 200, (225) 922-2300; Lafayette, 825 Kaliste Saloom Road, Brandywine III, Suite, 150, (337) 262-5455; Lake Charles, One Lakeshore Drive, Suite 1550, (337) 491-2504; Monroe, 122 St. John Street, Room 105, (318) 362-3151; New Orleans, 1555 Poydras Street, Suite 900, (504) 568-5233; Shreveport, 1525 Fairfield Avenue, (318) 676-7505; and Thibodaux, 1418 Tiger Drive, (985) 447-0976. ###
Developed and Maintained by Louisiana Department of Revenue