Pension
I can start receiving my pension from my ex since I’m now 66 and he is 68.
If I take it as a lump sum, will I have to pay taxes in Louisiana? Are there any options available for financial hardships? Is it better to wait, or can I access it now without facing penalties? I’ve heard changes are coming next year, so I’m uncertain whether to take it now or hold off until then. What do you recommend? Thanks!
Pebbles
Best Answers
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Pebbles,
That is a great question!
If you are a resident of LA, you will generally pay taxes to LA on that retirement income. LA does allow certain exclusions for retirement income. All persons 65 and older pay exclude up to $6,000 of retirement income. There are additional exclusions for retirement benefits from certain retirement systems.
For more information, see below:
If you are unable to pay the full amount of taxes due by the due date of the return, you can request a payment plan from LA:
I am unable to speak about any potential changes, but tax-law changes can certainly impact when you want to receive retirement income.
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There may be state taxes on the $1,500 or a part of it. My recommendation would be, when it comes available, would be to go through the state section of our software and the appropriate forms will be prepared and the tax calculated.
Answers
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Hello,
I appreciate your prompt response to my inquiry. You have validated the information I received regarding the situation. The amount in question is relatively minor, as the plant has been inactive for more than 15 years. My share amounts to a modest sum of 7500, which I am willing to share. Although it is a small figure, I am thankful for it.
Does this imply that I will be liable for taxes on 1500? Additionally, which tax form should I utilize if I decide to move forward with this matter this year? Thank you for your assistance.
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Hello,
Okay, great advice. I will search for it in your software, and go from there.
Much appreciated,
Wanda