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R-540-G1 (7/15)
Tax Year
Credit for Taxes Paid to Other States
Worksheet for IT-540 and IT-541
2014 and Prior Tax Years
This worksheet has been created to reflect the restrictions for the credit for taxes paid to other states according to Act 109 of the 2015
Regular Session of the Louisiana Legislature. The restrictions are applicable when the credit is claimed on any return filed on or
after July 1, 2015 regardless of the taxable year to which the return relates. Please refer to Revenue Information Bulletin 015-018 for
information regarding amended returns and returns on extension.
Pursuant to Revised Statute 47:33 a credit for taxes paid to other states shall be allowed ONLY if the other state provides a similar credit
for Louisiana income taxes paid on income derived from property located in, or from services rendered in, or from business transacted
in Louisiana and the other state does not allow a nonresident a credit against the income taxes imposed by that state for taxes paid or
payable to the state of residence. The credit is limited to the amount of Louisiana income tax calculated on the income earned in other
states.
If there is not enough space below, additional forms may be completed as needed. Attach this form and copies of the return filed with
the other states to your Form IT-540 or Form IT-541.
Column 5:
Column 2: Column 3: Column 4: Louisiana Tax on Column 6:
Column 1: Income Earned in Net Tax Liability Percentage of Income Earned in Credit for Taxes
State Other States Paid to Other State Income Earned Other State Paid to Other State
1. $ $ % $ $
2. $ $ % $ $
3. $ $ % $ $
4. $ $ % $ $
5. $ $ % $ $
6. $ $ % $ $
7. $ $ % $ $
8. $ $ % $ $
9.Total (Add Lines 1
through 8) $ $ % $ $
INSTRUCTIONS:
Column 1 through 3: List the state in Column 1, the income earned in that state that is taxable to Louisiana in Column 2, and the
net tax liability as reported on the other state’s return in Column 3. This figure does not come from your W-2, 1099R or W-2G forms.
Exception: Mississippi taxable income and tax liability on gambling winnings will be on the W-2G form.
Column 4: Calculate the percentage of income earned in that state to Louisiana adjusted gross income. Divide the amount in Column 2
by the amount reported on Form IT-540, Line 7 or Form IT-541, Line 4. Round the percentage to two places after the decimal.
Column 5: Louisiana tax on income earned in other state. Multiply Column 4 by your Louisiana income tax. On Form IT-540, your
income tax is found on Line 11 or Line 10 for tax years 2005 through 2006. On Form IT-541, your income tax is found on Line 9 or Line
13 for tax years 2005 through 2013. Round to nearest dollar.
Column 6: Credit for Taxes Paid to Other States. Enter the lesser of Column 3 or Column 5 for each line. On Line 9, enter the total of
Lines 1 through 8. Also enter the amount From Column 6, Line 9 on Form IT-540, Schedule G, Line 1; or Form IT-541 Line 10 for 2014 or
Line 14A for tax years 2005 through 2013.