With your house paid off and your kids no longer living under that same roof, you are limited in the deductions you can take from your income in retirement. It’s important to understand how your retirement income is taxed in the state you live in so you can make your retirement savings go farther.
In Louisiana, if you are 65 and older you can deduct up to $6000 of retirement income from your taxable income. This is includes individual filers and married filing jointly taxpayers. You can exclude all of your retirement benefits from your state taxes if you are receiving benefits as a federal retiree, both nonmilitary and military. Also, if you have deferred income from municipal and state police employee’s retirement, then you can exempt that income from state taxes.
We recommend you consult your financial advisor or tax professional in Louisiana with any specific questions on how your retirement income is taxed. If you don’t have one, we would be happy to recommend one in your local area. Give us a call at Retirement Think Tank at (888) 282-3653 or email us at firstname.lastname@example.org. We would welcome the opportunity to speak with you!