What are the Income Law Requirements in the State of Louisiana?
As an individual who is independent and you have a job that sustains you, you must have come across the term income tax. It is an aspect of living and working in a country. Income tax is a monetary charge that is levied on your income by the government. It is the income that is usually generated by businesses and individuals within a state’s jurisdiction. According to the law, it is mandatory for taxpayers such as yourself to file an income tax return annually and to determine what your tax obligations are. It is essential to know that income tax is a source of revenue for the government. The monetary gains are used by the government to fund public services, pay for government obligations, and provide goods for citizens.
In the U.S, some taxes are imposed separately at the federal, state, and local government level. Taxe charges are imposed upon income, payroll, property, sales, capital gains, dividends, imports, estates, and gifts, as well as various fees. The taxes, however, fall much more heavily on labor income than on capital income.
In Louisiana, it is mandatory for both residents and non-residents with income earned in the state to pay income tax each year. According to the amount of income you make, your tax rate varies from 2-6%, minus all tax credits. Choosing not to pay your taxes can result in tax evasion or tax fraud charge.
Requirements for Louisiana income tax1. The Louisiana state law requires every resident, and non-resident to pay taxes on income that they have earned, as long as they lived in Louisiana for at least six months of the year or have Louisiana as their permanent residence.
2. Non-residents are obligated to pay taxes only on their income that they’ve earned in Louisiana, whether from a property, services, or other business transactions.
3. The residents of Louisiana, part-year residents, and nonresidents who receive income from Louisiana sources are obligated to file a federal income tax return and are required to submit a Louisiana Individual Income Tax Return.
4. To obtain a refund or credit, taxpayers who have overpaid their tax through withholding or declaration of estimated tax.
5. Foreign and domestic real estate investments, corporations are taxed on their net income earned in the state as well. The individual partners who are mutually within a partnership must file personal income taxes.
6. Military personnel whose home town is in Louisiana is required to submit a federal income tax return. He/She is obligated to file a return and report all income regardless of where they were stationed.
Returns and payments
Returns and payments of taxes are generally due on or before May 15th of the following year. For each financial year taxpayers, returns and refunds are always due on the 15th day of the 5th month after the close of every fiscal year.
Determining tax in Louisiana
The income tax is determined by using the tax tables which is provided by the Louisiana Department of Revenue. Tax rate applies a taxpayer's filing status and the taxpayer's taxable income in Louisiana.
The state of Louisiana collects income taxes from its residents by utilizing three tax brackets.
For single taxpayers, they are:
- 2% on the first $12,500 of taxable income.
- 4% on taxable income between $12,501 and $50,000.
- 6% on taxable income of $50,001 and above.
If you are married, you are obligated to have the information that you can file a joint return, and you should know that your income tax brackets are doubled.
- 2% on the first $25,000 of your collective net income over the amount of the applicable tax credits
- 4% on the additional $75,000 of net income
- 6% on collective net income over $100,000 of net income