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#1
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LA non-resident taxes on federally exempt incomeWhat is the name of your state (only U.S. law)? My state: WA. Tax state: LA With regard to out of state non-residents, see the LA instructions quoted below for handling federally tax exempt income. I find them to be unclear: on the one hand saying they must be earned while domiciled in state and then saying simply that they should be included if they are reported on lines 8b or 9b of the 1040. We were not ever domiciled in LA in 2007 but we have amounts on line 8b and 9b. Logically, it would seem the initial requirement should govern as for those of us residing out of state they are not LA incomes and otherwise the federally tax exempt amounts might be taxable by as many states as one had income in (that is, if all states had that stipulation). Additions Line 13 – Interest income and dividends not reported on your federal return are taxable to Louisiana, if ALL of the following conditions are met: a) the interest and dividends were earned while you were domiciled in Louisiana; b) the interest and dividends were received from obligations of a state or political subdivision of a state other than Louisiana; and c) the obligations were purchased on or after January 1, 1980. Obligations of the State of Louisiana, its political subdivisions, or public corporations created by them and their constituted authorities are exempt from Louisiana taxes. If you have nontaxable interest or dividend income on Federal Form 1040A, Lines 8b or 9b, or Federal Form 1040, Lines 8b or 9b, add the amounts together and print the result in the box on Line 13 under the Louisiana column. AND they were earned while you were domiciled in Louisiana???What is the name of your state (only U.S. law)? |
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#2
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| A contributor posted: Quote:
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#3
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| The bottom line is that federal tax law and state tax law are different. LA chooses to do thing the way that they choose to do them.
__________________ in vino veritas |
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#4
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| Call the LA tax authorities to get your questions answered. |
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#5
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| I had tried that but found no numbers available. |
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#6
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NonresidentQuote:
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#7
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| Thank you, mt, and that's what I would like to think, but you see the contradiction in the directions? That and the fact that TurboTax wants to dump the whole amounts of tax-exempt earnings into those taxable by LA, eventhough it knows I live full time out of state are what make me unsure. |
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#8
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| Quote:
__________________ in vino veritas |
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#9
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| For the TT state tax return. |
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#10
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| Maybe I am confused, but you seemed to indicate that you neither lived nor worked in LA. That is why I am asking why Turbo Tax was prompted to do an LA return.
__________________ in vino veritas |
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#11
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| Neither live in nor work there but have investment income from there (partnership interests). |
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#12
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| Then it is similar in concept like New York - it wants its tax $$ from income generated in that state, regardless of residency. You'll have to override it in TurboTax. If you neither work in LA, nor are domiciled in LA, then your tax-exempt income (assuming it is NOT LA income) would be exempt. Any LA bonds in that mess? |
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#13
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Every state with an income tax will tax non-residents on business income derived from that state. That concept is not unique to Lousiana or New York. Partnership income in and of itself doesn't make you taxable in a state: the income has to be BUSINESS income. If a partnership is based in a state and is only an investment partnership, a non-resident is NOT taxed on that income in that state as it would be non-business income. If you ARE taxed in that state, then most states will require that you include tax exempt interest from other states as part of your total overall income in its calculation of your tax in that state. |
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#14
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These types of returns are the kinds that I recommend that a tax professional handle, at least the first time. I'm am NOT talking a "I'm only open during tax season" type of place, but one that is open year-round. You will look for one that can handle multi-state partnership types of tax returns.
__________________ If you don't like something, change it. If you can't change it, change your attitude. Don't complain. Maya Angelou |
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#15
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| Quote:
__________________ in vino veritas |
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