Louisiana Subtractions from Income
The entries you make on this page of the Louisiana state program will appear on the Schedule E.
TAXABLE AMOUNT OF SOCIAL SECURITY
Social Security benefits that are taxed on your federal return are exempt from Louisiana tax.
IRS 280 (c) WAGE EXPENSE ADJUSTMENT
Please refer to the Revenue Information Bulletin 06-017 for further details from LDR's website. To substantiate the credit, provide LDR with a copy of Federal Form 3800 that indicates the credit plus the appropriate form for the credit. A shareholder of an S corporation or other pass-through entities should attach a copy of Schedule K-1 to substantiate the credit.
OTHER EXEMPT INCOME AMOUNT/DESCRIPTION:
- Native American Income- Provides that income derived from sources on the reservation that have been earned or received by an enrolled member of a federally recognized Indian tribe who resides on that tribe’s reservation shall be exempted from Louisiana individual income tax. The income derived from sources outside of the reservation, including sources outside of Louisiana, that have been earned or received by an enrolled member of a federally recognized Indian tribe residing on that tribe’s reservation is taxable for Louisiana individual income tax purposes. Income earned by a member of a federally recognized tribe residing off of the tribe’s reservation in Louisiana is taxable regardless of the income source. Additionally, an enrolled member of a federally recognized Indian tribe who resides on the reservation for a portion of the year and resides off the reservation for a portion of the year is taxed based on where the enrolled member resided when the income was earned.
- START Savings Program Contributions- Provides that any Louisiana Student Tuition Assistance and Revenue Trust (START) account holders with a filing status of single, married filing separately, head of household, and qualifying widow(er) can exempt up to $2,400 per beneficiary from Louisiana taxable income. Account holders with a filing status of married filing jointly can each exempt up to $4,800 per beneficiary from Louisiana taxable income. In certain situations, the exemption amount can be doubled. See the Louisiana Dept. of Revenue website for further information.
- Military Pay Exclusion- Provides an exclusion to Louisiana residents who were on active duty in the U.S. armed forces for 120 or more consecutive days. The exempt portion is the compensation earned outside of Louisiana during and after 120 plus consecutive days of active duty, up to $30,000. Example: If on January 15, 2015 you went on active duty and continuously remained on active duty at least through May 14, 2015 (120 days) during which you served 40 days in Louisiana and the remainder outside of Louisiana, income from the 41st days forward is exempt, up to $30,000, once you have served more than 120 consecutive days. Retain a copy of your official orders, including endorsements that establish your 120 plus consecutive days of active duty with your 2015 return.
- Road Home- Provides that any grant, loan, or other benefit directly or indirectly provided to a taxpayer by a hurricane recovery entity shall be excluded if the income was included in the taxpayer’s Federal Adjusted Gross Income. Hurricane recovery entities that provided benefits are the Road Home Corporation, the Louisiana Recovery Authority, or the Louisiana Family Recovery Corps.
- Recreation Volunteer- Provides an exclusion of $500 per tax year for individuals who volunteer for recreation departments. To qualify for this exclusion, the taxpayer must serve as a volunteer for 30 or more hours during the taxable year and must be registered as a volunteer with a recreation department operated by the State of Louisiana or a political subdivision of the state. The recreation department must certify that the taxpayer served as a volunteer and was not compensated for their services.
- Volunteer Firefighter- Provides an exclusion of $500 per tax year for individuals who serve as volunteer firefighters. To qualify for this exclusion, the taxpayer must complete 24 hours of continuing education and be an active member of the Louisiana State Fireman’s Association or on the departmental personnel roster for the State Fire Marshal’s Volunteer Fireman’s Insurance Program. To substantiate the exclusion, a taxpayer should retain either a membership card with the taxpayer’s name and the applicable tax year, a lifetime membership card, or a copy of the departmental personnel roster for the State Fire Marshal’s Volunteer Fireman’s Insurance Program and a certificate or other document provided to the taxpayer noting the date of the training, the topic covered, the duration of the training, and name and contact information of the person providing the training to support the continuing education requirements.
- Voluntary Retrofit Residential Structure- Provides an exclusion for a taxpayer who voluntarily retrofits an existing residential structure on which the homestead exemption is claimed for ad valorem tax purposes and the structure is not rental property. The exclusion is for 50 percent of the cost paid or incurred on or after January 1, 2007, less the value of any other state, municipal, or federally sponsored financial incentives and is limited to $5,000 per retrofitted residential structure. To qualify, the voluntary retrofitting must not be a construction, reconstruction, alteration, or repair of an existing residential structure and must comply with the State Uniform Construction Code. See Revenue Information Bulletin 09-007 for more information.
LOUISIANA SCHOOL EXPENSE DEDUCTION - This encompasses the following three entries:
- Elementary and Secondary School Tuition- R.S. 47:297.10 provides a deduction for expenses paid for your qualified dependent’s enrollment in a nonpublic elementary or secondary school or any public elementary or secondary laboratory school operated by a public college or university. The dependent must be claimed on your 2015 return, or must have been claimed on your 2014 return.
- Educational Expenses for Home-Schooled Children- R.S. 47:297.11 provides a deduction for expenses paid for home-schooling your qualified dependent. The dependent must be claimed on your 2015 return, or must have been claimed on your 2014 return.
- Educational Expenses for a Quality Public Education- R.S. 47:297.12 provides a deduction for expenses paid for a quality education for your qualified dependent’s enrolled in a public elementary or secondary school. The dependent must be claimed on your 2015 return, or must have been claimed on your 2014 return.
For additional "Other Deductions" allowed by Louisiana, please refer to the Louisiana Resident Individual Income Tax Return instructions.