re: The Two Parent Privilege

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how could reporting $25,000 less income NOT result in paying fewer taxes? I really don’t understand how that could be.

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For the tax credit, there is no state income tax deduction. STO contributions are credited in full (upto max allowance), then taxes are based on pre-STO-contribution income.

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the legislative branch enacted this scheme, it wasn’t on a statewide ballot.

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The Legislature is elected. That was the premise. Legislators supporting schemes for "The 1%" to screw the remaining 99% don't get reelected.

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But you believe the CPA is incorrect or giving bad advice in favor of your own calculations?

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MsNC is a CPA btw. But, double benefit avoidance is pretty specifically covered in your LA tax code.

It's possible in some verrrrry specific cases there could be a small derived benefit on Federal returns, but insinuating that as some sort of wealth greed money grab is off base. So regarding the CPA analysis, IMO you've been intentionally misled.

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What is the add back to prevent a double benefit on the donation and how does it work?
LA R.S. 47:6301(A)(1)(a) provides that a “taxpayer shall not receive any other state tax credit, exemption, exclusion, deduction or any other tax benefit for when the taxpayer has received” the credit for donations to school tuition organizations. For Louisiana income tax purposes, the starting point for corporation and fiduciary income tax returns is federal taxable income and the starting point for individual income tax is federal adjusted gross income. The prohibition on double benefits requires that a taxpayer add back certain deductions taken at the federal level that are otherwise deductible for state income tax purposes. If a taxpayer does not take the corresponding deduction related to the donation, no add back is required.

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:

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

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)

LINK

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This entire thread is hilarious. Basically, NC is "Abbott" to Cubbie' "Costello" as she dutifully ignores any and all responses looking for her to support even one fricking assertion she's made in the entire thread.

It's just one giant pile of emotional absurdity and good soul or not, I've no idea why NC is catering to the incredibly dishonest person.

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It's just one giant pile of emotional claptrap and good soul or not, I've no idea why NC is catering to the incredibly dishonest person.

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hes got more patience than i, shes very dishonest and indoctrinated.

Shes not here to discuss, shes here thinking her wokeness is superior to reality.

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She's manipulative as frick.

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She is a Redditor.

She is literally the walking, talking embodiment of a Redditor.

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And I've still seen zero evidence that she's even slightly a good person.

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Correct, in fact shes terribly dishonest in this thread.