Military Pay
Resident - In Louisiana, up to $50,000 of military pay is excluded from income for active duty military members who were stationed outside of Louisiana for 120 consecutive days or more during the tax year.
To subtract military pay from the Lousiana resident return in TaxSlayer Proweb, from the Louisiana return menu select:
- Subtractions From Income
- Other Subtractions
- Select Other Exempt Income and enter the deduction amount below - Select 10E - Military Pay Exclusion - Up to $50,000 and enter the military pay to exclude as a positive number.
Nonresident - If the taxpayer is a nonresident of Louisiana stationed in Louisiana whose only source of income is active duty military pay, they are not required to file an Louisiana return.
One spouse is a resident of Louisiana and the other is not - Louisiana requires the same filing status as found on the federal return. If one spouse is a resident of Louisiana and the other is not, they will need to file a nonresident return to exclude the income of the nonresident spouse.
Spouse Income - Military Spouses Residency Relief Act (MSRRA)
The MSRRA allows military spouses who reside with their service member spouse stationed in a nonresident state on military orders to keep their resident state for tax purposes. This means if the spouse has income from the nonresident state, they are not required to pay taxes to the nonresident state but report this income on their resident state return.
In order to be eligible for the income exemption under the MSRRA in Louisiana , the following conditions must be met by the military spouse/employee:
- The servicemember is present in Louisiana in compliance with the servicemember’s
military orders; - The spouse is not a resident or domiciliary of Louisiana; and
- The spouse is present in Louisiana solely to be with the servicemember.
If the military spouse meets the eligibility requirements, they can avoid Louisiana state tax from being withheld from their pay by providing their employer with (a) a current valid military identification, (b) a current Leave and Earnings Statement, and (c) Employee Withholding Exemption Certificate (L-4).
To claim a refund of taxes withheld from the Louisiana income in error, follow these steps from the Louisiana nonresident state return menu:
- Income Subject to Tax
- Wages that qualify for Military Spouses Residency Relief Act - Enter the wages as a positive number.
Note: This is an article on reporting military pay and military spouse pay in TaxSlayer ProWeb. It is not intended as tax advice.
Additional Information:
LA DOR: Louisiana NonResident and Part-Year Instructions