List the source and amount of other income included in Line 1 of Schedule E that Louisiana cannot tax. You must attach copies of supporting documentation to verify the exemption claimed on this line. Do not list income earned in another state. Residents of Louisiana are taxed on all income regardless of where it was earned. Credit for taxes paid to other states may be deducted on Non-refundable Tax Credits, Schedule G , Line 1. Nonresidents and part-year residents should use Form IT-540B to determine their Louisiana tax. Nonresident professional athletes should use Form IT-540B-NRA. Disabled individuals claiming an exemption (R.S. 47:59.1) for making adaptations to their home should use this line to deduct the expenses from their gross income. Persons receiving disability income (R.S. 47:44.1(B)) for a permanent total disability may exclude up to $6,000 of annual disability income from their taxable income.
Persons claiming an S Bank shareholder exclusion should use this line to report the exclusion. An S Bank shareholder may exclude from Louisiana tax table income an amount equal to the S Bank shareholders nontaxable income. S Bank nontaxable income means the portion of the income reported by an S Bank on Federal Form 1120S (Schedule K-1), or equivalent document, and which is attributable to the net earnings used to compute the S Banks shares tax as provided in R.S. 47:1967.
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