Archive for July, 2011

LDR News Release – Many back-to-school expenses eligible for Louisiana state income tax deductions

BATON ROUGE – The Louisiana Department of Revenue reminds shoppers to hold on to their receipts while shopping for uniforms, books, supplies, and other items students will need for the new school year.  Many of those purchases are eligible for Louisiana state income tax deductions.

The Louisiana School Tuition & Expense Tax Deductions apply to tuition, school supplies, and home-schooling expenses. 

There are three separate deductions:

Income Tax Deduction for Elementary and Secondary School Tuition (La. R.S. 47:297:10)

Allows an income tax deduction for amounts paid during the tax year for tuition and fees required for enrollment in a nonpublic elementary or secondary school. Beginning with the 2011 tax year, the deduction is for the full amount of tuition and fees per dependent, limited to $5,000. The total amount of the deduction may not exceed the taxpayer’s total taxable income.

Income Tax Deduction for Certain Educational Expenses for Home-Schooled Children (La. R.S. 47:297:11)

Allows an income tax deduction for education expenses paid during the tax year by a taxpayer for home-schooling children.  The deduction is for 50 percent of the actual qualified education expenses paid per dependent, limited to $5,000. Qualified educational expenses include amounts paid for the purchase of textbooks and curricula necessary for home-schooling. The total amount of the deduction may not exceed the taxpayer’s total taxable income. 

Income Tax Deduction for Fees and Other Education Expenses for a Quality Education (La. R.S. 47:297:12)

Allows an income tax deduction for the following fees or other amounts paid during a tax year by a taxpayer for a quality education of a dependent child enrolled in a public elementary or secondary school:

  • Purchases of school uniforms required by the school for general day-to-day use.
  • Purchases of textbooks, curricula, or other instructional materials required by the school.
  • Purchases of school supplies required by the school.

The deduction is for 50 percent of the amount paid by the taxpayer per dependent, limited to $5,000.  The total amount of the deduction may not exceed the taxpayer’s total taxable income.

In order to claim any of these deductions, you must be able to claim the student as a dependent on your Louisiana Individual Income Tax Return.

Visit www.revenue.louisiana.gov/schooldeduction for more information.

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RIB 11-012 – Temporary Suspension of Private Letter Ruling (PLR) Lifted

The Louisiana Department of Revenue is ending its temporary suspension of private letter rulings.

The department has issued Revenue Information Bulletin 11-012 to explain this policy change.

Effective September 1, 2011, the temporary suspension of PLR service will be lifted and the Policy Services Division will re-institute the service. As a result, taxpayers and their representatives may begin submitting PLR requests on or after September 1, 2011.

Taxpayers may contact the Policy Services Division at 225-219-2780 or by email at policy@la.gov to discuss whether a PLR is appropriate for the situation. If a PLR is inappropriate, other guidance can be given before the taxpayer invests the significant effort required to prepare a request. If it is determined that a PLR is appropriate, the request must be submitted to the Policy Services Division by email at policy@la.gov or by mail to the following address:

    Policy Services Division
    Louisiana Department of Revenue
    P O Box 44098 Baton Rouge, LA 70804-4098

Visit revenue.louisiana.gov to read the full text of RIB 11-012: Temporary Suspension of Private Letter Ruling (PLR) Service Lifted

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‘Shoppers in St. Charles Parish to get 9 percent sales tax break’

The St. Charles Parish School Board voted to waive its 5 percent local sales tax during the same weekend as the 2011 Louisiana Annual Sales Tax Holiday. This means that on Friday, August 5, and Saturday, August 6, shoopers in St. Charles Parish will save 9 percent on most purchases.

The Times-Picayune reports:

Beginning at 12:01 a.m. Aug. 5 and ending at midnight Aug. 6, no sales tax will be applied to the first $2,500 of the purchase price of consumer goods, including furniture, clothing and appliances.

The exemption does not apply to vehicles requiring a license and title or most meals. It also does not apply to hotel occupancy, admission to athletic events and laundering services among other things.

Shoppers could save $225 in taxes if they spent $2,500 or $9 if they were to spend $100.

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LDR accepting resubmission of 2010 filing extensions through August 15, 2011

BATON ROUGE – August 15, 2011, is the deadline for all filing extension requests related to 2010 Louisiana individual income tax and 2010 Louisiana Corporation Income and Franchise tax returns that were returned due to the failure to include a Louisiana tax account number.

LDR requires a Louisiana tax account number on all paper filing extensions submitted via state form CIFT-620EXT or IRS Form 7004.  Extensions cannot be processed without the account numbers. 

LDR will waive delinquent filing penalties for 2010 filing extension resubmissions that meet the August 15 deadline.  Those that fail to meet the deadline will be subject to delinquent filing penalties.

The resubmission should include only the extension request, not the full tax return.

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2011 Louisiana Annual Sales Tax Holiday – August 5 & 6

The majority of consumer purchases are exempt from state sales taxes during the 2011 Louisiana Annual Sales Tax Holiday on Friday, August 5, and Saturday, August 6.

The sales tax holiday exempts the first $2,500 of the purchase price of each eligible item from the four percent state sales tax. The law describes eligible items as “individual items of tangible personal property for non-business use.”

The Louisiana Department of Revenue encourages shoppers to retain receipts for school supplies, uniforms, and educational equipment required by schools.  Expenses paid this year are eligible for tax deductions on 2011 Louisiana Individual Income Tax Returns due May 15, 2012.  In order to claim the deductions, you must be able to claim the student as a dependent on your state individual income tax return, and you must be able to provide documentation for the expenses.  Visit www.revenue.louisiana.gov/schooldeduction for more information.

Purchases are eligible for the sales tax exemption under the following conditions:

  • The customer buys and accepts delivery of eligible property;
  • The customer places property on layaway;
  • The customer acquires property that was previously placed on layaway; or
  • The customer places an order for immediate delivery, even if delivery must be delayed, provided that the customer has not requested delayed shipment.

The Louisiana Annual Sales Tax Holiday exemption does not apply to:

  • Vehicles subject to license and title
  • Meals prepared for consumption on premises or to-go
  • Taxable services such as hotel occupancy, laundry services, printing services, telecommunication services, the furnishing of cold storage space, leases or rentals of tangible personal property, repairs to tangible personal property, and admission to athletic, amusement, or recreational facilities or events

For retailers, a $25-per register tax credit is available for the reprogramming of cash registers in preparation for the sales tax holiday.

Visit www.revenue.louisiana.gov/taxholiday2011 for more information.

 

 

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‘Jindal OKs tax break legislation’

Governor Bobby Jindal has signed into law several tax breaks lawmakers passed in the recently completed legislative session.

The signing ceremonies took place at several Louisiana businesses.

The Advocate reports:

At Sasol North America Inc.’s chemical complex near Lake Charles, Jindal signed legislation that offers payroll rebates and other incentives to businesses.

Senate Bill 72 by state Sen. Mike Michot, R-Lafayette, rewards certain employers with a rebate for paying at least $14.50 an hour in wages and health benefits. Sales tax rebates and investment credits also are possible.

The legislation renews the program, called Louisiana Quality Jobs, for six years.

[...]

Later in the day, the governor signed House Bill 597 at TraceSecurity Inc. in Baton Rouge.

HB597 by state Rep. Michael Jackson, D-Baton Rouge, restarts the Angel Investor Tax Credit Program that ended in 2009.

The program encourages investment in start-up companies.

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