Louisiana School Expense Deduction

http://www.revenue.louisiana.gov/individualincometax/schoolexpensededuction

Deductions For School Tuition, Home School Educational Expenses, And Public School Educational Expenses

Summary

  1. The deduction is effective for tax years 2009 and forward.
  2. The school expense deductions are deductions from Louisiana taxable income—they are not tax credits.
    1. The deduction will be reported on Schedule E of the Louisiana Resident Income Tax Return, Form IT-540, as an adjustment to income and the Louisiana School Expense Deduction Worksheet must be attached to your return.
    2. The deduction is allowed for Louisiana residents only. Part-Year residents may take the deduction for school expenses paid in Louisiana during the time a person was a Louisiana resident. The deduction will be reported on the Nonresident and Part-Year Resident (NPR) Worksheet of the Louisiana Nonresident and Part-Year Resident Income Tax Return, Form IT-540B, as an adjustment to income and the Louisiana School Expense Deduction Worksheet must be attached to your return.
    3. The deduction is not available to nonresidents.
  3. Taxpayers must retain all expense receipts as proof of the amounts paid.
  4. The deduction is limited to $5,000 per dependent.
  5. For 2009 and 2010, The deduction is for 50 percent of the costs paid per dependent, limited to $5,000.
    1. If a dependent’s expenses exceed $10,000, the deduction is limited to $5,000. If one dependent’s expenses are $8,000 and the second dependent’s expenses are $12,000—the total deduction allowed is $4,000 for the first dependent and $5,000 for the second dependent for a total deduction of $9,000.
    2. If one dependent qualifies for two or more deductions and the dependent’s expenses exceed $10,000, the combined total of the deductions is limited to $5,000. If the dependent attended a school that qualifies for the deduction for elementary and secondary school tuition and the expenses are $9,000—the deduction allowed is $4,500. If the dependent also attended a public school in the fall and the expenses are $1,500—the second deduction allowed is limited to $500, for a total deduction of $5,000.
    3. If one dependent attended 2 different schools qualifying for the same deduction and the dependent’s expenses exceed $10,000, the deduction is limited to $5,000. If the dependent attended a school that qualifies for the deduction for elementary and secondary school tuition and the expenses are $6,000 and in the fall attended a different qualifying school whose expenses are $16,000—the deduction allowed is $5,000.
  6. For 2011 and forward, the deduction is for 50 percent of the costs paid per dependent, limited to $5,000 if your dependent is home-schooled or attends a public school. If your dependent is enrolled in a nonpublic elementary or secondary school, the deduction for elementary and secondary school tuition is for actual costs paid per dependent, limited to $5,000.
    1. If a dependent’s expenses exceed $10,000, the deduction is limited to $5,000.
    2. If one dependent qualifies for two or more deductions and the dependent’s expenses exceed $10,000, the combined total of the deductions is limited to $5,000.
    3. If one dependent attended 2 different schools qualifying for the same deduction and the dependent’s expenses exceed $10,000, the deduction is limited to $5,000.
    Examples for 2011 and forward If dependent is either home-schooled or attends a public school: If dependent attends a school that qualifies for the deduction for elementary and secondary school tuition:
    1 dependent with expenses that exceed $10,000: The deduction is limited to $5,000. The deduction is limited to $5,000.
    If one dependent’s expenses are $8,000 and the second dependent’s expenses are $12,000: If both dependents is either home-schooled or attends a public school, the total deduction allowed is $4,000 for the first dependent and $5,000 for the second dependent for a total deduction of $9,000. If both dependents attend a nonpublic school, the total deduction allowed is $5,000 for the first dependent and $5,000 for the second dependent for a total deduction of $10,000.
    If one dependent’s expenses are $8,000 at a public school and the second dependent’s expenses are $12,000 at a qualifying nonpublic school: The deduction allowed is $4,000 for the first dependent, And $5,000 for the second dependent.
    If a dependent attended a qualifying nonpublic school and the expenses are $9,000 and attended a public school in the fall and the expenses are $1,500: The second deduction would not be allowed since the dependent reached the limit of $5,000. The deduction allowed is $5,000.
    If a dependent attended a public school and the expenses are $1,500 and in the fall attends a qualifying non public school and the expenses are $9,000: The deduction allowed is $750 for attendance at a public school, And the deduction allowed is $4,250 for a total deduction of $5,000.
    If the dependent attended 2 different schools qualifying for the same deduction and the dependent’s expenses exceed $10,000: The deduction is limited to $5,000. The deduction is limited to $5,000.
  7. The deduction is for the parent or guardian who claims the student as a dependent for the current tax year or claimed the student as a dependent on the prior year’s return. For example, in order to claim the deduction for 2010, the taxpayer must have claimed the student as a dependent on their 2010 return or their 2009 return. If the student’s parents do not file a joint return and alternate claiming the child as a dependent, both parents are allowed to claim the deduction for the expenses that each paid for the year. However, the limit for the deduction is placed on the dependent’s expenses, not the individual claiming the expenses. If a dependent’s expenses exceed $10,000, the deduction is limited to $5,000. If one parent’s paid expenses are $6,000 and the other parent’s paid expenses are $6,000—the total deduction allowed is $2,500 for each parent for a total deduction of $5,000 for the dependent.

Click here for frequently asked questions about the School Expense Tax Deduction

  1. Revised Statute 47:297.10—Income tax deduction for elementary and secondary school tuition

    This statute allows an income tax deduction for amounts paid during the tax year by a taxpayer for tuition and fees required for a dependent’s enrollment in a nonpublic elementary or secondary school which complies with the criteria set forth in Brumfield , et al. v. Dodd, et al. 425 F. Supp. 528 and Section 501(c)(3) of the Internal Revenue Code or to any public elementary or secondary laboratory school that is operated by a public college or university. For 2009 and 2010, the deduction is for 50 percent of the actual amount of tuition and fees paid by the taxpayer per dependent, limited to $5,000 per dependent. For 2011 and forward, the deduction is for the actual amount of tuition and fees paid by the taxpayer per dependent, limited to $5,000 per dependent. The total amount of the deduction may not exceed the taxpayer’s total taxable income. For the purposes of the deduction, tuition also includes the following expenses:

    1. Purchase of school uniforms required by schools for general day-to-day use.
    2. Purchases of textbooks, curricula, or other instructional materials required by schools.
    3. Purchase of school supplies required by schools.

  2. Revised Statute 47:297.11—Income tax deduction for certain educational expenses for home-schooled children

    This statute allows an income tax deduction for educational expenses paid during the tax year by a taxpayer for home-schooling children. The deduction is for 50 percent of the actual qualified educational expenses paid for the home-schooling per dependent, limited to $5,000 per dependent. 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.

  3. Revised Statute 47:297.12—Income tax deduction for fees and other educational expenses for a quality public education

    This statute 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:

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

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

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