How does an individual income taxpayer add back in order to avoid a double benefit on the donation to a school tuition organization?

For federal income tax purposes, individuals may deduct charitable contributions as an itemized deduction on Federal Schedule A to arrive at federal taxable income in accordance with Internal Revenue Code Section 170. If the taxpayer claims the credit for tax years 2018 through 2021, the individual shall make an addition on Schedule E of the LA Form IT-540 or Non-Resident & Part-Year Resident Worksheet of the LA Form IT-540B if the following two conditions apply:

1. The individual’s federal itemized deductions allowed by Internal Revenue Code Section 170 included the donation made by the individual to the school tuition organization as a charitable contribution on Schedule A attached to Federal Form 1040; and
2. The individual claimed the excess federal itemized personal deduction allowed by LA R.S. 47:293(3) for the tax year in which the donation was made by the individual to the school tuition organization.

The addition required on Schedule E of the LA Form IT-540 or LA Form IT-540B shall be the difference between the individual’s excess federal itemized personal deduction and the recalculated excess federal itemized personal deduction after removing the donation from the individual’s federal itemized personal deduction for the tax year in which the donation was made and receipt was issued by LDE. The addition is limited to the amount of the credit claimed. Beginning with tax year 2022, the add back is no longer needed for individuals because Act 395 of the 2021 Regular Legislative Session limited excess federal itemized deductions to medical and dental expenses. This change to excess federal itemized deductions eliminated the double state benefit for a donation to a school tuition organization effective December 31, 2021. (Answer revised 10/7/22)