Below are some of the tax law changes the state of Louisiana has made for tax year 2022:
Extensions
Act 410 of the 2022 Regular Legislative Session changed how an extension is granted. Instead of having to file for a one before the deadline, you will automatically be granted an extension of six months to November 15, 2023.
Deductions
The following deductions are no longer available starting with the 2022 tax year:
- Federal Income Tax Deduction
- Conversion of Vehicle to Alternative Fuel Credit
Donations
You may now donate all, or a portion, of your Louisiana refund to the following organizations:
- Maddie's Footprints
- University of New Orleans Foundation
- Southeastern Louisiana University Foundation
Adjustments to income
Recapture of START K12 Contributions - Any previously exempted Louisiana Student Tuition Assistance and Revenue Trust Grades K-12 (START K12) contributions that were refunded to you during 2022 by the Louisiana Office of Student Financial Aid is taxable and should be added back to your state return.
Add Back of Donation to School Tuition Organization Credit - This add-back is no longer needed starting with the 2022 tax year.
Military Pay Exclusion - Starting with the 2022 tax year, the military pay exclusion has increased to up to $50,000.
START K12 Savings Program Contributions - "Any Louisiana Student Tuition Assistance and Revenue Trust K-12 (START K12) account holders with a filing status of single, married filing separately, head of household, and qualifying widow(er) can exempt up to $1,200 per beneficiary from Louisiana taxable
income. Account holders with a filing status of married filing jointly can exempt up to $2,400 per beneficiary from Louisiana taxable income." (What's new for LA)
Digital Nomad - Any individuals who meet the requirements of a digital nomad can exclude 50% of their gross wages up to $150,000.
Refundable Priority 2 Credits
School Readiness Child Care Directors and Staff - "The credit is for eligible child care directors and eligible child care staff based on certain attained qualifications. The amount of the credit is adjusted each year if there is an increase in the Consumer Price Index Urban (CPI-U). The credit amount for 2022 can be found here."
Stillborn Child - Louisiana now allows a refundable credit for an individual who experienced a pregnancy which resulted in a stillbirth. The credit is equal to $2,000 and can be claimed for the year in which the stillbirth occurred.
Funeral and Burial Expense for a Pregnancy-related Death - Louisiana now allows a refundable credit to be claimed for the reasonable funeral and burial expenses associated with the pregnancy-related death of a person. The credit is equal to the actual reasonable funeral and burial expenses paid or $5,000, whichever is less, and is claimed for the year in which the death occurred.
Mentor Protégé - This credit is no longer available starting in 2022.
Nonrefundable Priority 3 Credits
School Readiness and Child Care Credit Carried Forward From 2017 through 2021 - These credits for taxpayers whose federal AGI exceeds $25,000 cannot be refunded. However, any unused amounts from the credit can be used over the next 5 years.
2022 Louisiana Refundable Child Care Credit Worksheet
"Since the Louisiana credit is a percentage of the federal credit, the federal changes to revert back are reflected on the 2022 Louisiana Refundable Child Care Credit Worksheet."
Additional Information
For more information regarding the 2022 tax law changes, please click here.