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This topic explains the difference between the Income Distribution Deduction and the Distributable Share of Income.

Distributive share of income

The ‘Distributive share of Louisiana income to beneficiary’ is reported on LA Form IT-541, page 8, Schedule C. The distributive share is each beneficiary’s share of total income (both taxable and tax-exempt) prior to any adjustments.

Income distribution deduction

The ‘Income distribution deduction’ is reported on Form IT-541, page 1, line 5. It is the sum of all Louisiana K-1 Equivalents line 1 and line 2 minus all the beneficiaries’ Line 3 subtractions.

The state does not require all modifications to be reported on line 2. If line 2 is blank, Onvio Tax will use the amount that would be on line 2 if the state required it to be reported there.

Louisiana Overview