Louisiana Other Adjustments to Income

Article ID: 59194  

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Louisiana Other Adjustments to Income

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SCHEDULE E – ADJUSTMENTS TO INCOME

Add Back of Donation to Student Tuition Organization Credit – Line 2B – Act 377 of the 2017 Regular Legislative Session provides for a prohibition on double state benefits for a donation to a school tuition organization. If you claimed the credit for a donation to school tuition organization on Form IT-540, Schedule J, you must add back certain deductions taken at the federal level otherwise deductible for state income tax purposes if the following conditions are met:

a. Your federal itemized deductions allowed by Internal Revenue Code Section 170 included the donation made to the school tuition organization as a charitable contribution on Schedule A attached to Federal Form 1040; and

b. You claimed the excess federal itemized personal deduction on Form IT-540, Line 8C for the tax year in which the donation was made.

The amount required to be added back is the difference between the amount reported on Form IT-540, Line 8C and the recalculated excess federal itemized personal deduction after removing the donation from the individual’s federal itemized personal deduction for the tax year in which the donation was made. The addition is limited to the amount of the credit claimed. See Revenue Information Bulletin 18-029. (R.S. 47:6301(A)(1)(a))

Entity Level Taxes Paid to Other States – Code 23E – Act 6 of the 2018 Second Extraordinary Legislative Session provides a deduction for an individual partner, member, or shareholder’s proportionate share of an entity-level tax paid to other states that is based solely upon net income included in the entity’s federal taxable income without any capital component. The deduction is for the taxpayer’s share of the tax paid during 2018 and is limited to the extent that the proportionate share of the related income is or was taxed by Louisiana. See Revenue Information Bulletin 18-029. (R.S. 47:33)


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