Archive for July, 2012

Many back-to-school purchases are tax deductible

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BATON ROUGE – School supplies, school uniforms, tuition and educational equipment may be eligible for a series of state tax breaks known as the Louisiana School Tuition & Expense Deductions.  These income tax deductions are available to families with students in public, private and parochial schools, as well as students who are home-schooled.  Deductions for purchases this year may be claimed on 2012 Louisiana Individual Income Tax Returns due May 15, 2013.  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 document the expenses.

A tax deduction can reduce your taxable income, resulting possibly in a larger income tax refund.

Deduction for Elementary and Secondary School Tuition

This deduction applies to 100 percent of tuition and fees paid to a nonpublic elementary or secondary school, up to $5,000 per dependent.  It applies also to the following expenses:

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

Deduction for Fees and Other Educational Expenses for a Quality Public Education

This deduction applies to 50 percent of the amount paid for eligible expenses, up to $5,000 per dependent.  Eligible expenses include:

  • 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

Deduction for Certain Educational Expenses for Home-schooled Children

This deduction applies to 50 percent of eligible expenses, up to $5,000 per dependent.  Eligible expenses include textbooks and curricula necessary for home-schooling.

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

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Most retail purchases exempt from state sales tax August 3 & 4

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BATON ROUGE – Louisiana shoppers can make purchases free of the 4 percent state sales tax on most retail items during the 2012 Louisiana Annual Sales Tax Holiday on Friday, August 3, and Saturday, August 4. 

The exemption applies to the first $2,500 of the purchase price of each eligible item.

Eligibility

The sales tax exemption applies to “individual items of tangible personal property” 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.

Local sales taxes apply unless the local taxing authority allows its own exemption.

The sales tax holiday 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

Tax Deduction for School Expenses

The Louisiana Department of Revenue encourages shoppers to retain receipts for school supplies, uniforms and educational equipment required by schools.  These expenses may be eligible for tax deductions on 2012 Louisiana Individual Income Tax Returns due May 15, 2013.  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. 

For more information about the 2012 Louisiana Annual Sales Tax Holiday, visit www.revenue.louisiana.gov/taxholiday.

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