How to File Your Louisiana Tax Return for 2021: Step-by-Step Guide for Individuals and Small Businesses

Filing your Louisiana state income tax return for 2021 is essential for staying compliant with state tax laws. Whether you are a full-time resident, a part-year resident, or a nonresident with Louisiana-sourced income, understanding the tax filing process will help you meet legal requirements and avoid penalties. This guide will confidently walk you through the forms, instructions, and steps to file.

For the 2021 tax year, certain taxpayers must submit a state return even if they have already filed a federal income tax return. Louisiana residents who earned income during this period, military personnel stationed in or claiming Louisiana as their home of record, and small business owners reporting state-level revenue all have specific filing obligations. Knowing your filing status and whether your income is subject to Louisiana taxes is the first step in determining your requirements.

Correct and timely filing helps you stay compliant and can also ensure you receive any refund or credit you are entitled to claim. Following a straightforward, step-by-step approach simplifies the process, avoids common mistakes, and ensures your tax return is complete and accurate. This article is designed to simplify complex terms and provide accessible instructions even for individuals unfamiliar with state tax rules.

Overview of Louisiana State Income Tax for 2021

Louisiana residents, part-year residents, and nonresidents with Louisiana-sourced income may be required to file a state tax return for the 2021 tax year. Filing requirements depend on your residency status, the amount of income earned, and whether you had income subject to Louisiana taxes. Military personnel must also follow specific rules based on their home of record and station location.

2021 Louisiana Tax Rates and Income Thresholds
The state used a graduated tax rate system in 2021. Your taxable income and filing status determine the rate:

• Single, Married Filing Separately, or Head of Household:
  
  • $0 – $12,500: 2%
  • $12,501 – $50,000: 4%
  • $50,001 and over: 6%
• Married Filing Jointly or Qualifying Surviving Spouse:
  
  • $0 – $25,000: 2%
  • $25,001 – $100,000: 4%
  • $100,001 and over: 6%

Filing Deadlines and Key Changes
The deadline to file your 2021 Louisiana tax return was May 16, 2022. Missing this date could increase your income tax liability due to penalties and interest. Key changes for the 2021 tax year included exemptions for certain COVID-19 relief benefits, new donation options, and the discontinuation of Form IT-540B-NRA for professional athletes. The Louisiana Department of Revenue issued these updates, which affect how certain deductions, credits, and exceptions are applied.

Louisiana Tax Forms You Need

Before starting the tax filing process, gather the correct Louisiana forms for your residency status and income type. Using the wrong form can delay processing, increase tax liability, or require you to amend your tax return later.

Forms for Louisiana Residents

• Form IT-540—Louisiana Resident Individual Income Tax Return: Used by Louisiana residents whose permanent home is in the state. This form reports all income earned during the year, regardless of source.

Forms for Nonresidents and Part-Year Residents

• Form IT-540B—Nonresident and Part-Year Resident Individual Income Tax Return: Used by nonresident taxpayers and part-year residents to report Louisiana-sourced income only.

Key Schedules You May Need

• Schedule C—Credits for taxes paid to other states (residents only).
• Schedule E—Louisiana modifications to federal adjusted gross income.
• Schedule F-NR—Refundable Priority 2 Credits (e.g., child care credit).
• Schedule C-NR—Nonrefundable Priority 1 Credits.
• Schedule J-NR—Nonrefundable Priority 3 Credits.

Special Filing Requirements for Professional Athletes

• Must file electronically using Form IT-540B with Schedules NRPA-1 and NRPA-2.
• Paper filing is not allowed for this group.

Supporting Forms

• R-540V—Payment voucher for electronic filing when paying by check or money order.
• IT-540ES—Estimated tax declaration voucher for taxpayers making quarterly payments.

All forms and schedules are available on the Louisiana Department of Revenue website. Always use forms for the correct tax year to ensure accurate reporting and avoid processing delays.

Step-by-Step Guide to Filing Your Louisiana Tax Return

A structured approach makes the tax filing process more efficient and helps ensure your return is accurate. The steps below guide you from preparation to submission for the 2021 tax year.

Step 1 – Gather Your Documents

Collect all records you need to complete your return. This includes:

• Income statements include W-2 forms, 1099 forms, and Louisiana income tax withholding statements.
• Deduction records, including receipts for eligible expenses, proof of credit eligibility, and records of taxes paid to other states.
• Previous tax records include your prior-year Louisiana and federal income tax returns.
• Personal information, including Social Security numbers for yourself, your spouse, and any dependents.

Step 2 – Complete Personal and Louisiana-Specific Information

• Choose your correct filing status (single filers, married filing jointly, married filing separately, head of household, or qualifying surviving spouse).
• Indicate your parish of residence on December 31, 2021.
• Mark the return as amended if applicable.

Step 3 – Calculate Louisiana Adjusted Gross Income

• For Louisiana residents: Start with your federal adjusted gross income, then add or subtract state-specific modifications listed in Schedule E.
• For nonresidents and part-year residents: Report all income earned during the year, then determine the portion from Louisiana sources to calculate the tax on your Louisiana-sourced income.

Step 4 – Apply Deductions and Exemptions

• Decide between the standard and itemized deductions, depending on which lowers your income tax liability.
• Claim personal exemptions for yourself, your spouse, and any dependents.

Step 5 – Calculate Tax Using 2021 Tables

Refer to the official 2021 Louisiana tax tables from the Louisiana Department of Revenue. Match your taxable income with your rates and status to determine the amount owed before credits.

Step 6 – Apply Credits

• Apply refundable credits such as the school readiness credit or child care credit.
• Apply nonrefundable credits, including taxes paid to other states.
• Ensure you meet the eligibility requirements for each benefit claimed.

Step 7 – Review and Finalize

• Double-check math calculations and verify that all required forms and schedules are included.
• Sign and date your return; both spouses must sign if filing jointly.
• Keep a copy of your record for at least three years after filing.

Common Filing Mistakes to Avoid

Even experienced taxpayers can make errors that cause delays, increase tax liability, or trigger penalty notices from the Louisiana Department of Revenue. Knowing these issues before you file can save time, money, and frustration.

• Incorrect Personal Information
  Mistyping your Social Security number or mismatching names with Social Security Administration records will delay processing. Always check your information for accuracy before submission.
• Missing Required Forms or Schedules
  Leaving out schedules such as Schedule C, E, or supporting documents for a claimed credit can lead to a rejected tax return. Attach all forms needed for your filing status and the type of income or deductions you report.
• Using the Wrong Year’s Forms
  Make sure you use forms specifically for the 2021 tax year. Using outdated or future-year forms can cause processing errors and require resubmission.
• Forgetting to Sign and Date the Return
  An unsigned return is considered incomplete. For joint returns, both spouses must sign. Electronic filers must use the proper e-signature process.
• Failing to Keep Copies of Records
  Maintain copies of your filed return, income earned documentation, and proof of deductions for at least three years. This protects you in case of an audit or filing dispute.

Double-checking these areas simplifies the process, avoids unnecessary delays, and ensures your Louisiana state return is processed smoothly.

How to File Your Louisiana Tax Return

You can file your Louisiana state tax return electronically or by mail. Choosing the correct method depends on your preference, eligibility, and time before the filing deadline.

Electronic Filing via LaTAP (Recommended)

The Louisiana Taxpayer Access Point (LaTAP) is the official online portal from the Louisiana Department of Revenue.

Benefits of electronic filing:

• Faster processing and quicker refund delivery.
• Immediate confirmation that your return has been received.
• Secure submission with fewer errors due to built-in form validation.

Requirements for e-filing:

• You must have filed a Louisiana return in 2004 or later, or
• You must be filing for the first time with valid identification.

Note: Professional athletes and certain exceptions must file electronically by law.

Paper Filing

If you prefer to file a paper return, use the correct mailing address based on whether you are including a payment:

• With payment:
  Louisiana Department of Revenue
  P.O. Box 3550
  Baton Rouge, LA 70821-3550
• Without payment:
  Louisiana Department of Revenue
  P.O. Box 3440
  Baton Rouge, LA 70821-3440

Mailing tips:

• Use certified mail if sending a payment.
• Include all required schedules and documents.
• Allow 6–8 weeks for processing compared to 2–3 weeks for e-filed returns.

Payment Options and Deadlines

Once you determine your tax liability, you can choose several payment methods. Paying on time helps avoid penalties and interest charges.

Electronic Payment Methods (Recommended)

The Louisiana Taxpayer Access Point (LaTAP) offers secure, convenient ways to pay:

• ACH bank transfer: No additional fee, and funds are withdrawn directly from your account.
• Credit card payments: Accepted with a small convenience fee.
• Immediate payment confirmation: Helps you keep accurate payment records.

Traditional Payment Methods

If you prefer to mail your payment:

• Send a check or money order payable to “Louisiana Department of Revenue.”
• Write your Social Security number, tax year, and “Louisiana Taxes” on the memo line.
• Include the R-540V payment voucher with your return if filing by mail.

Payment Deadlines and Penalties

• The payment deadline for 2021 returns was May 16, 2022.
• Late payment penalty: 5% of the unpaid monthly tax, up to a maximum of 25%.
• Interest: Calculated from the original due date until the balance is paid.
• To avoid future penalties, make estimated payments if you expect to owe more than $1,000 (single filers) or $2,000 (joint filers) in Louisiana taxes for the next tax year.

How to Track Your Refund or Balance Due

After filing your Louisiana tax return, you can monitor your refund or check your balance due using the Louisiana Taxpayer Access Point (LaTAP). This helps taxpayers stay informed about payment status, potential delays, and outstanding amounts.

Checking Your Refund Status

• Log in to your LaTAP account to see the real-time status of your refund.
• You will need your Social Security number, filing status, and your return refund amount.
• LaTAP shows each processing stage, from “Return Received” to “Refund Issued.”

Processing Timeframes

• Electronic returns: Usually processed in 2–3 weeks.
• Paper returns: May take 6–8 weeks.
• Returns that require additional review or documentation may take longer.

Common Causes of Refund Delays

• Incorrect Social Security numbers or mismatched personal information.
• Missing signatures or incomplete schedules.
• Math errors that require corrections by the Louisiana Department of Revenue.

Checking Your Balance Due

Through LaTAP, you can:

• View your current balance and payment history.
• Set up or modify a payment plan if needed.
• Download account statements for your record.

Final Filing Checklist

Review this checklist before submitting your Louisiana state tax return to ensure your filing is complete, accurate, and compliant with state requirements. A thorough review can help avoid delays, penalties, or rejected returns.

Document Review

• Confirm your federal income tax return is complete, as Louisiana uses federal figures to determine taxable income.
• Verify that you are using the correct form—Form IT-540 for Louisiana residents and Form IT-540B for nonresidents and part-year residents.
• Ensure all income earned during the tax year is reported, including any from Louisiana sources.
• Double-check Social Security numbers for yourself, your spouse, and dependents.

Forms and Schedules

• Attach all required schedules, including Schedule C, Schedule E, and credit forms.
• Include proof for any credit or deduction claimed, as needed.
• Use forms for the correct period to avoid mismatched data.

Payment and Filing Method

• Select your payment method: electronic payment through LaTAP or traditional check/money order.
• Use the correct mailing address if filing by paper.
• For e-filing, confirm submission and keep the confirmation number in your record.

Final Verification

• Check math calculations and totals.
• Sign and date the return; both spouses must sign for joint filers.
• Keep copies of your return and supporting documents for at least three years.

Completing this checklist before filing can simplify the process and help ensure your return is accepted without delays.

Common Filing Mistakes to Avoid

Even experienced taxpayers can make errors that cause delays, increase tax liability, or trigger penalty notices from the Louisiana Department of Revenue. Knowing these issues before you file can save time, money, and frustration.

1. Incorrect Personal Information

Mistyping your Social Security number or mismatching names with Social Security Administration records will delay processing. Always check your information for accuracy before submission.

2. Missing Required Forms or Schedules

Leaving out schedules such as Schedule C, E, or supporting documents for a claimed credit can lead to a rejected tax return. Attach all forms needed for your filing status and the type of income or deductions you report.

3. Using the Wrong Year’s Forms

Make sure you use forms specifically for the 2021 tax year. Using outdated or future-year forms can cause processing errors and require resubmission.

4. Forgetting to Sign and Date the Return

An unsigned return is considered incomplete. For joint returns, both spouses must sign. Electronic filers must use the proper e-signature process.

5. Failing to Keep Copies of Records

Maintain copies of your filed return, income earned documentation, and proof of deductions for at least three years. This protects you in case of an audit or filing dispute.

Frequently Asked Questions

What if I missed the 2021 Louisiana tax return deadline?

If you missed the May 16, 2022, deadline, you can still file your 2021 Louisiana tax return. Late filers owing Louisiana taxes may face a penalty of 5% per month, up to 25%, plus interest. If you are due a refund, there is no penalty, but you must file within three years of the original due date to claim it.

Can I e-file my Louisiana return for free?

The Louisiana Taxpayer Access Point (LaTAP) offers free e-filing for eligible taxpayers. This method is secure, provides immediate confirmation, and speeds up refunds. You can also make credit card or ACH payments through LaTAP. While ACH transfers are free, credit card payments include a small convenience fee. E-filing helps reduce errors and is generally processed within two to three weeks for faster results.

Which deductions are most commonly overlooked?

Commonly missed deductions and credits include the school readiness credit, child care credit, and tax credits paid to other states. Some Louisiana residents also overlook certain military pay exemptions and prior-year carry-forward credits. Review your income sources, filing documents, and Louisiana Department guidelines to ensure you claim all eligible deductions. Detailed records ensure you don’t miss out on these potential tax savings.

How do I request a filing extension?

Louisiana granted an automatic six-month extension for the 2021 tax year. No separate form was required to extend the filing deadline. However, the extension applied only to submitting the return, not paying the balance due. Interest and penalties apply to unpaid taxes after May 16, 2022. Taxpayers should have estimated and paid any expected tax liability by the original due date to avoid these charges.

Can I file jointly if I moved to or from Louisiana mid-year?

If you moved into or out of the state during the 2021 tax year, you will file as a part-year resident using Form IT-540B. Your federal filing status determines your Louisiana status. Only report income subject to Louisiana taxes for the portion of the year you were a resident. This ensures you correctly allocate Louisiana-sourced income and avoid overpaying or underpaying taxes.

How do I amend my 2021 Louisiana tax return?

To correct an error, file an amended return using the same form—IT-540 for residents or IT-540B for nonresidents and part-year residents—and mark it as “Amended Return.” Include a detailed explanation of the change, plus updated schedules or forms if needed. If you amended your federal income tax return, attach a copy. Submit through LaTAP or by mail to the appropriate Louisiana Department address.

How long should I keep my tax records in Louisiana?

You should keep your Louisiana tax return and supporting documents for at least three years from the filing date or due date, whichever is later. Keep records for up to seven years if you claimed a loss or other notable exception. Retain proof of income earned, deductions, and credits. Good recordkeeping helps resolve disputes, respond to audits, and verify information for future tax filings.

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Explore More Tax Return Resources

• Previous year: 2020 Louisiana Tax Guide
• Next year: 2022 Louisiana Tax Return Guide

Need Help With Back Taxes in Louisiana?

• Louisiana Penalty Abatement Guide
• Louisiana Payment Plan Options
• Louisiana Offer in Compromise Guide
• Louisiana Power of Attorney Guide
• Louisiana Tax Collection Process Guide

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