R-10606: Supplemental Worksheet for Credit for Taxes Paid to Other States for Forms IT-540 and IT-541 (Revision 2023-01)
Louisiana · Louisiana LDR · Used for tax years 2024
This supplemental worksheet calculates the Louisiana credit for income taxes paid to other states for Forms IT-540 and IT-541. It lists income, deductions, tax liabilities, and the credit amount for each state.
Who files this form
Use this worksheet if you are a Louisiana resident claiming a credit for income taxes paid to other states on income reported on your Louisiana return. Attach it to Form IT-540 or Form IT-541.
The credit is allowed only if the other state does not allow a nonresident a credit for taxes paid or payable to the state of residence.
What you'll need
- Your Louisiana Form IT-540 or Form IT-541, including Schedule E or Schedule A if completed, for the income, deduction and tax amounts used in the worksheet.
- Copies of the tax returns filed with the other states. Attach these copies along with the worksheet to your Louisiana return.
- Form W-2G if you have Mississippi gambling winnings. The worksheet uses this form for Mississippi taxable gambling income and the related tax liability.
Enter the tax year and your Louisiana Revenue Account Number or Social Security number on the worksheet.
How to file
Complete the worksheet and attach it, along with copies of the returns filed with the other states, to Form IT-540 or Form IT-541. Use additional worksheets if you need more space.
For each state:
- Enter the state abbreviation and the income taxable to both that state and Louisiana.
- Calculate the income ratio, deductions attributable to that state, and tax table income in Columns 3 through 5.
- Calculate the tax table income ratio in Column 6 and multiply it by your Louisiana income tax for Column 7.
- Enter the other state's net tax liability in Column 8. In Column 9, enter the smaller of Columns 7 and 8.
Total Lines 1 through 14 in Columns 8 and 9 on Line 15. Transfer the totals as follows:
- Column 8: Form IT-540, Schedule C, Line 1A.
- Column 9: Form IT-540, Schedule C, Line 1B, or Form IT-541, Line 8.
If you use multiple worksheets, combine their Line 15 totals before transferring them. The supplied text does not give a mailing address or e-filing directions.
Common mistakes
- Using withholding forms for Column 8. Use net tax liability from the other state's return, not a W-2, 1099 or W-2G. The exception is Mississippi tax liability on gambling winnings, which comes from Form W-2G.
- Exceeding the Column 2 limit. For IT-540, the total is limited to Line 7 or Schedule E, Line 1, if completed. For IT-541, it is limited to Line 1 or Schedule A, Line 1, if completed.
- Skipping the deduction adjustment. You must reduce income earned in other states by the deductions attributable to that income when calculating Louisiana tax table income.
- Leaving out attachments. Attach both the worksheet and copies of the other states' returns to your Louisiana return.
Questions people ask
How much credit can I claim for each state?
Enter the smaller of the Louisiana tax attributable to that state's income in Column 7 and the net tax liability paid to that state in Column 8.
What if I need more room to list states?
Complete additional worksheets as needed. Add the Line 15 totals from all worksheets before transferring the totals to your Louisiana return.
How should I round the calculations?
Round the percentages in Columns 3 and 6 to two decimal places, such as 48.32%. Round the dollar amounts in Columns 4 and 7 to the nearest dollar.
Where do I find income earned in another state?
Use the return filed with that state, and include income taxable to both that state and Louisiana. For Mississippi taxable income from gambling winnings, use Form W-2G instead.