Questions for Louisiana preparers.

[Ron H]

The IT-540, Line 23 credit for homeowner’s insurance on primary residence see (Line 23 instructions below) I called my insurance agent and said there is a difference between homeowners and fire policies. I have only deducted homeowner’s policies and not any of the fire policies. I was wandering if I’m scrutinizing this too closely.

Line 23 - Print the amount of your Louisiana Property Insurance Credit.

For 2008 only, a refundable credit is allowed for a portion of the premiums paid on the primary residence for a homeowner’s insurance policy, a condominium owner’s insurance policy, or a tenant homeowner’s insurance policy. See the Louisiana Property Insurance Credit Worksheet, page 34

1. Have ya’ll been excluding fire policies form this credit?

Sch E – adjustments to income code 49E - other

Persons receiving disability income (R.S. 47:44.1() for a permanent, total disability may exclude up to $6,000 of annual disability income from their taxable income.

49E – Other – On a separate schedule, list the source and amount of other income included in Schedule E, Line 1, which Louisiana cannot tax. You must attach copies of supporting documentation in order to verify the exemption claimed on this line.

2. What kind of documentation required making the $6,000 adjustment?

3. Would this require sending the return as a paper return rather than an e-file?