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Louisiana Department of Revenue Updates Military Pay Exemption

February 21, 2006

Louisiana Department of Revenue Updates Military Pay Exemption


BATON ROUGE- The Louisiana Department of Revenue is pleased to announce that Governor Kathleen Blanco has signed into law, HB21 of the First Extraordinary Session of 2006 that retroactively applies the Military Pay Exclusion to tax year 2005.

The exclusion allows active duty personnel of the United States Armed Forces to exclude the first $29,999 of military pay from state income taxation if that person is outside of Louisiana for 120 or more consecutive days. Affected resident military personnel may claim the exemption on Louisiana Schedule E, Line 4H, of their resident income tax Form, IT540. Part-year resident taxpayers, who made Louisiana their home of record during 2005, should include any exempted amount on the schedule they are required to prepare for Line 8 of Form IT540B.

Any qualifying taxpayer, who has already filed their 2005 return, may amend in order to receive the exemption.

The Louisiana Department of Revenue’s mission is to administer the applicable tax laws of the state of Louisiana as well as regulations concerning alcohol, tobacco and charitable gaming.