LA Preparers - Education Credits

[Cathy]

Late in getting program up and running.  Doing a test return with 2 children that I showed tuition for one in a private school and tuition for the other also in a public school.  The program is handling that ok from what I can see....both types of schools now get a 50% tuition, etc.. reduction of gross income.

The problem I see is that from what I'm reading from LDR, one can either take the $25 credit (reduced to $18 for 2015) or the tuition, etc... reduction of income.  In prior years, there was a check off box on the line for each dependent to check whether the dependent was in K through 12th grade.  Now, there is no box.  On page 2 of the IT540, Line 13 magically states 1 student and the credit of $18 appears.......

2 problems:  1. You can't take both the $18 per dependent and the tuition reduction, and even if you could, why does the form lists only 1 student rather than 2?  And yes, the $10,000 tuition reduction to income does appear on the return also.

Has anyone else noticed this?

 

Thanks,

Cathy

 

 

 

 

 

 

[Lynn EA USTCP in Louisiana]

I have not tested this yet. Did you email Barbara Reeves at LDR about this. I knew the $25 is now reduced to $18 but was unaware of the issue you posed. I copied your query to a colleague who attended the LDR practitioner liaison meeting last November and will forward her response.

Lynn 

Edited January 24, 2016 by lynn EA in Louisiana
Added more info

[Lynn EA USTCP in Louisiana]

See The INstructions for the 2015 form 540 , under what's new, now specifically state it is either the now reduced $18 per child education credit OR tuition credit.  

[Cathy]

Lynn, 

The amended statutes goes like this:  R.S. 47:297 (D) (1) This part of the law allows the set credit per child in K through 12th grade "unless the deduction for the payment of tuition and fees for non-public elementary and secondary school tuition is taken for the child as provided for in R.S. 47:297.10."  It goes on to say "NOTE: Paragraph (D) (2) EFF. UNTIL JUNE 30, 2018.  (AND THAT PARAGRAPH READS:)  "(2) Any taxpayer who so qualifies shall be entitled to a maximum tax credit of eighteen dollars per child for educational purposes"  

 

OK!  It makes complete sense now that I've reviewed the actual laws......If the student qualifies for the 100% deduction of tuition for non-public tuition (capped at $5,000), then the taxpayer can't take the $18 credit also.  And thus the reason I only had "1" student magically shown on Line 13 for the educaiton credit.  On my test return, one child was in non-public school and the other in public school.  

 

This situation goes back to Sen. Rob Marionneaux's last term in office....he slipped the non-public school tuition at 100% (capped at $5,000) at the back of another bill on the last day of his last session.  Although my kids and grandkids went/go to non-public schools, I still feel it wasn't right not to include public school costs at 100%.

 

This problem solved!  Now the issue at hand still remains the credit for taxes paid to another state.

 

Thanks, Lynn!

P.S.  The DOR's instructions need clarification.  ATX is correctly preparing the return according to the statutes.

Edited January 25, 2016 by Cathy

[Cathy]

Forget what I just posted!

Edited January 30, 2016 by Cathy
I'm being driven nuts by the DOR! :)

[Lynn EA USTCP in Louisiana]

Why, Cathy ??