How to apply for Louisiana income tax: $12,000 retirement income exclusion for age 65+ (and exempt Social Security and public pensions)

Who it's for

If you are 65 or older, you can exclude up to $12,000 of retirement income (such as a private pension, annuity, IRA, or 401(k)) from your Louisiana taxable income. If you are married filing jointly and both of you are 65 or older, each of you can exclude up to $12,000; if only one spouse has retirement income, the exclusion is limited to $12,000. Starting in 2025 the $12,000 amount is adjusted each year for inflation. Louisiana also does not tax Social Security benefits, federal civilian and military retirement, railroad retirement, or benefits from many Louisiana state and local retirement systems. Claim the exclusion on Schedule E of your Louisiana resident return (Form IT-540) using code 06E, and attach your Forms 1099-R.

What you'll need

• Louisiana individual income tax return (Form IT-540)
• Forms 1099-R for retirement income

Where to apply

Step by step

1. Gather your Louisiana individual income tax return (Form IT-540) and your Forms 1099-R for retirement income.
2. Check whether this tax break applies to you. It can help if you are age 65 or older and owe Louisiana income tax on retirement income that is not already exempt.
3. Complete Schedule E of your Louisiana resident return and claim the retirement income exclusion using code 06E.
4. Attach your Forms 1099-R to your Louisiana return.
5. Apply online by filing your Louisiana income tax return.
6. Review your return before submitting. The exclusion cannot be more than your retirement income.

What to expect: After you file, the Louisiana Department of Revenue will process your state income tax return. Processing times can vary, so ask the agency if you need an estimate. To keep getting this tax break, claim it again each year when you file your Louisiana return.

Renewals

annual (claim on each year's return)