Filing your Louisiana state income tax return for the 2020 tax year is essential for residents, part-year residents, nonresidents, and small business owners who earned income in the Pelican State. Louisiana income taxes are separate from federal income taxes, meaning you must submit a Louisiana tax return in addition to your federal return if you meet the state’s filing requirements. The Louisiana Department of Revenue sets clear rules on who must file, what forms to use, and the deadlines for submission. For 2020, the filing deadline for most taxpayers was May 15, 2021.
Accurate and timely filing ensures compliance with Louisiana tax laws and helps you avoid penalties, interest, and delays in receiving a refund. Filing late can result in a failure-to-file penalty, a separate failure-to-pay penalty, and interest on any taxes owed. Even if you cannot pay your full state income tax balance immediately, submitting your return on time is critical to minimizing these additional charges. By following the correct tax filing process, you can ensure your income, deductions, and taxable income are correctly reported, and any eligible income tax credits are applied.
This step-by-step guide simplifies the tax return process for the 2020 tax year. It covers everything from determining whether you must file to gathering the proper forms to understanding the changes from 2019 that could affect your taxable income. Whether you are an individual filer, a retiree with Social Security income or federal retirement benefits, or a small business owner reporting business income, this guide will walk you through the requirements, explain deadlines, and help you accurately prepare and submit your Louisiana taxes.
Louisiana residents, part-year residents, and nonresidents with Louisiana income may need to file a state income tax return for the 2020 tax year. Residents must file if they submitted a federal tax return or if their income exceeds the state’s filing thresholds, even if a federal return was not required. Nonresidents and part-year residents must file if they earned income from Louisiana sources during 2020.
For single filers and married individuals filing separately, the threshold begins at $2,500 in net income or $6,000 in gross income. Married couples filing jointly, heads of household, and qualifying widows (er) filers have the same thresholds. Understanding these limits is essential for avoiding unintentional noncompliance, especially for taxpayers with part-year residency or income from multiple states.
For the 2020 tax year, the Louisiana Department of Revenue set the filing deadline for calendar-year filers at May 15, 2021. Requests for an extension of time to file were also due by this date, granting up to six additional months to submit a return. It is important to note that an extension to the filing did not extend the time to pay any taxes owed.
Quarterly estimated income tax payments for 2020 were due on April 15, June 15, and September 15, 2020, with the final installment due January 15, 2021. Taxpayers who missed these dates could face an underpayment penalty and interest charges.
The 2020 Louisiana tax year brought several significant changes affecting individual taxpayers and small business owners. Many credits in 2019 expired, including the Louisiana Citizen Insurance Credit, the Credit for Certain Disabilities, the Law Enforcement Education Credit, and the Bulletproof Vest Credit. These expired programs were replaced by temporary relief measures in response to the COVID-19 pandemic.
Two new pandemic-related provisions were introduced: the COVID-19 Pandemic ATC License Credit, offering relief to certain businesses that paid alcohol and tobacco permit fees, and the COVID-19 Educational Expenses deduction, covering qualifying educational coaching services from March 13 to December 31, 2020. In addition, new worksheet requirements applied for credits such as the Nonrefundable Child Care Credit and School Readiness Credit, meaning taxpayers had to attach specific forms to their 2020 return to claim these benefits.
The Louisiana Department of Revenue provides several primary forms for filing 2020 state income tax returns. Full-year residents use Form IT-540 to report all taxable income, while nonresidents and part-year residents file Form IT-540B to report only Louisiana-sourced income. Taxpayers who need additional time to file can submit Form R-2868, the Application for Extension of Time to File. Those who may owe an underpayment penalty should use Form R-210R. Individuals making estimated payments can file Form IT-540ESi to declare and pay estimated taxes for the year.
Choosing the correct form ensures your return is processed accurately and avoids delays that could affect refunds or create disputes over taxes owed.
For the 2020 tax year, many taxpayers needed to attach additional schedules and worksheets depending on income type, deductions, or credits. Each schedule serves a specific purpose and must be included with your Louisiana tax return if applicable.
Small business owners and sole proprietors file using the standard individual income tax forms. Still, they must also report their business income on the federal Schedule C, which flows into the Louisiana return. Employers must file the L-1 form to report withholding taxes on employee wages. Businesses with taxable movable property may also need to submit parish-level property tax declarations.
Understanding which forms are necessary for business reporting helps ensure all income is taxed correctly and that any available deductions or credits are claimed.
All Louisiana tax forms for 2020 can be downloaded directly from the Louisiana Department of Revenue website. Taxpayers may also request paper copies by calling the department at 888-829-3071. Correct official forms are vital because unofficial or altered copies may not be accepted for processing.
Before you begin, collect your completed federal tax return, all W-2 and 1099 forms, records of Louisiana tax payments, documentation for deductions and credits, and Social Security numbers for yourself, your spouse, and dependents. Having these ready will make the filing process smoother and help prevent mistakes.
Full-year residents use Form IT-540 to file their Louisiana state income tax return. Enter personal information, match your filing status to your federal return, report exemptions, transfer your federal adjusted gross income, apply deductions, calculate tax using state tables, claim credits, report consumer use tax, list payments, determine refund or balance due, and sign the form.
Self-employed individuals and small business owners must complete the federal Schedule C and transfer net profit or loss to the state return. They can claim the credit for taxes paid to other states when eligible. Remember that most federal business deductions also apply for Louisiana purposes.
Double-check your return for missing schedules, mismatched filing status, unreported consumer use tax, math errors, or attempts to claim expired credits. These errors can delay processing, reduce refunds, or increase tax bills. Reviewing your return before submission helps ensure accuracy and faster processing.
For the 2020 tax year, the Louisiana Department of Revenue encouraged taxpayers to use electronic filing for faster processing and fewer errors. You can file for free using Louisiana File Online or the Louisiana Taxpayer Access Point (LaTAP). Many commercial tax software programs and licensed tax professionals offer state e-filing services. Electronic returns with direct deposit are generally processed in about 45 days, compared to several weeks longer for paper returns.
If you file a paper return, use only original forms, print clearly in black ink, and attach all required W-2s, 1099s, and schedules. Sign and date your return before mailing it to the correct address:
An extension to the file can be requested online, by phone, or by mailing Form R-2868. However, to avoid penalties and interest, any taxes owed must still be paid by May 15, 2021.
If you needed more time to file your 2020 return, the Louisiana Department of Revenue allowed up to a six-month extension. Requests could be made online through the state’s extension portal, by phone using the automated system, or by mailing Form R-2868. Extensions are applied only to filing the return and not to paying any taxes owed. Payments must still be made by the May 15, 2021, deadline to avoid late payment penalties and interest.
The Louisiana Department of Revenue accepts secure ACH bank transfers through the Louisiana Taxpayer Access Point (LaTAP) with no added fee and credit or debit cards for a small convenience fee. If you file electronically through Louisiana File Online, you can submit your payment simultaneously to avoid missing the deadline. Electronic payments post faster, reducing the risk of late fees.
If paying by check or money order, make it payable to the Louisiana Department of Revenue. Include the last four digits of your Social Security number and a daytime phone number. For paper returns, include the check with your filing. If paying separately, use Form IT-540V to ensure the payment is applied to the correct account and year. Never mail cash.
For 2020 returns, payments were due by May 15, 2021. Late payments faced a penalty of 5 percent per month (up to 25 percent) plus interest. Quarterly estimated payments were due in April, June, September 2020, and January 2021. If unable to pay in full, you could request an installment agreement using Form R-19026, though interest continued to accrue until the balance was paid.
If you cannot fully pay your 2020 Louisiana state taxes, you can request an installment agreement by filing Form R-19026. Paying as much as possible upfront helped reduce interest and penalties. Interest continued to accrue until the balance was paid, and staying current on payments was essential to avoid defaulting on the agreement.
Check your 2020 Louisiana refund status anytime through the LaTAP portal’s “Where’s My Refund?” tool. Enter your Social Security number and exact refund amount to see if it is processing, approved, or issued. You can also log in to review payment history and any outstanding balances.
Call the automated refund hotline at 888-829-3071 or 225-922-3270, available 24/7. Have your Social Security number and refund amount ready. For payment or balance inquiries, call 855-307-3893 to speak with a representative.
Electronic returns usually take up to four weeks to process, while paper returns may take up to eight. Refunds are issued after accuracy checks and approval, then sent by direct deposit (3 business days to appear) or paper check (longer due to mailing). First-time filers receive paper checks only.
Before submitting your 2020 Louisiana state income tax return, take a moment to ensure every step is complete. This checklist can help you avoid common mistakes, reduce delays, and prevent unnecessary correspondence from the Louisiana Department of Revenue.
Suppose you missed the May 15, 2021, deadline for your 2020 Louisiana estate tax or state income tax return. File as soon as possible to reduce penalties and interest. The state charges a failure-to-file penalty of 5 percent per month (up to 25 percent) and a failure-to-pay penalty of 0.5 percent per month. There is no penalty if you are due a refund, but you must file within three years to claim it.
Louisiana allows a credit for income taxes paid to another state on the same income, which can help reduce double taxation. To claim this credit, complete the appropriate schedule and attach proof of the taxes paid to the other state, such as a copy of that state’s tax return or payment receipt.
Many taxpayers overlook deductions unique to Louisiana. For 2020, these included the federal income tax deduction, excess federal itemized deductions, START Savings Program contributions, and the COVID-19 Educational Expenses deduction. Retirees aged 65 and older may also qualify for the retirement income exclusion, which reduces taxable income and overall estate tax or income tax owed.
For 2020, you could request a six-month extension online through the Louisiana Department of Revenue’s extension portal, by phone, or by mailing Form R-2868. An extension gives you more time to file your taxes, but it does not extend the deadline for payment. Taxes owed were due by May 15, 2021, to avoid late payment penalties and interest.
If your federal status for 2020 was married filing jointly, you may file as a full-year Louisiana resident using Form IT-540 or as a part-year resident using Form IT-540B. If you earned most of your income after moving to another state, filing as a part-year resident may reduce your Louisiana tax liability.
If you find an error, you must amend your return using Form IT-540 or IT-540B, depending on your residency. Be sure to check the box labeled "Amended Return," then send in a return that has been completely corrected and explains the changes. If additional taxes are owed, it is essential to make prompt payments to minimize the interest and penalties.
Nonresidents who earned income in Louisiana must file Form IT-540B to report Louisiana-sourced income. You will also likely need to file a return in your home state. In many cases, your home state offers a credit for taxes paid to Louisiana, helping you avoid being taxed twice on the same earnings.
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