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Income Tax Liability: When Are You Considered a Louisiana Resident

Monday, October 06, 2014

For the purposes of determining income tax liability in Louisiana, all individuals who are domiciled, reside, or maintain a permanent place of residence are required to file a Louisiana individual income tax return and pay taxes on applicable income. According to Revised Statute 47:31, individuals who spend more than six months in Louisiana are considered residents of the state.

One exception to this rule is provided for spouses of military personnel. If the spouse is not a resident of the state, but is residing and working in Louisiana in order to be with a service member stationed in Louisiana, then he or she is not required to pay taxes on income, including wages, interest and dividends.

Federal income tax returns with Louisiana addresses are provided to the Louisiana Department of Revenue by the Internal Revenue Service. For income tax purposes, leaving the state temporarily does not automatically constitute a change in the taxpayer’s residency status. In order to express intent to establish a new place of residence outside of Louisiana, the taxpayer must take certain actions. For example, obtaining a drivers’ license, registering to vote, enrolling children in another school, and registering vehicles are all ways an individual can change their residency status.

If an individual is not a resident of Louisiana and therefore is not required to file a state tax return, the taxpayer must provide proof of residence in another state. Examples of residency documentation include the other states’ driver’s license, vehicle registration, and voter registration. However, a taxpayer is still considered a resident of Louisiana and liable for state income taxes if a permanent place of residence is maintained within Louisiana.