Louisiana Preparers - Glitch with Louisiana Schedule E

[Cathy]

Just discovered that there is a glitch with Schedule E for 2013. Earlier years were o'kay. I have a 65+ client who has a Louisiana State Employees Retirement and also an IRA distribution from a company that has nothing to do with the State of Louisiana.

As you know, all of the Louisiana State Employees Retirement is exempt from income taxable to Louisiana, plus an additional amount up to $6,000 if the client has another retirement payment that is not specifically exempt from Louisiana taxable income as well .

As the program would not allow the exemption for my client's IRA, I checked the Louisiana instructions for 2013 just to play it safe and Louisiana's instructions still says to add all retirement payments, then subtract "retirement income you received and reported as code, 02E, 03E, 04E, and 05E of Schedule E". Using the Louisiana instructions, the Louisiana State Employees Retirement amount is subtracted from the total retirement and then my clients other retirement payment(s) (not otherwise exempt from Louisiana taxable income), shows exempt and the code that appears is 06E "Retirement Income Exemp. 65 or over". (And it goes without saying that up to $6,000 of the IRA would be tax exempt.)

I will report it, but in the interim, I had to override the worksheet for line 06E.

Take care,

Cathy

[jasdlm]

Yikes. I only do one LA return, but it seems to be working. Hope I'm not missing anything. Both LA Employee's Retirement and Military Pension, plus IRAs and SS are subtracting from LA AGI.