2009 School Tuition and Expense Deduction

FINALLY – the citizens of Louisiana are going to get a tax break for school tuition and expenses paid for elementary and secondary education beginning for the 2009 tax year!

The Louisiana Legislature has enacted revised statutes to allow state income tax deductions for tuition and fees paid or incurred on or after January 1, 2009 on the 2009 income tax return.

The deduction is allowed on the state return only (not on the federal return). The amount allowed is the lesser of 50% of the tuition and expenses paid by the taxpayer for each child or $5,000 (per child). The deduction is calculated separately for each child. The taxpayer must retain all expense receipts as proof of the amounts paid.

Taxpayers have been asking for relief from the high costs of private school tuition and expenses for some time. While these revised statutes answer that request they also encompass public school expenses and home-school expenses.

“Tuition” includes fees required for enrollment in a non-public elementary or secondary school or any public elementary or laboratory school operated by a public college or university. Tuition in this case also includes amounts paid for uniforms required for daily use, textbooks and other instructions materials and school supplies required by the schools.

An income tax deduction is also allowed for certain educational expenses for home-schooled children, which include amounts, paid for the purchase of textbooks and curricula necessary for home schooling.

An income tax deduction is also allowed for fees and other educational expenses for a quality public education which includes purchases from the school of school uniforms required for daily use, purchases from the school of textbooks, curricula or other instructional materials, and purchases from the school of school supplies required by the school.

The taxpayer is not currently required to be able to take the student as a dependent in order to take the state tax deduction, however, there is current legislation being considered to require the student to be dependent of the taxpayer claiming the deduction. The even better news is that the deduction is not phased out for taxpayers in higher tax brackets!