Frequently Asked Questions

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)

The corporation’s federal deductions for charitable contributions allowed by Internal Revenue Code Section 170 included a deduction for the donation made by the corporation to the school tuition organization.

The addition required to be made on Schedule F of the LA Form CIFT-620 shall be the amount of the charitable contribution claimed on the corporation’s federal return. The addition is limited to the amount of the credit claimed on the return.

The fiduciary’s federal deductions for charitable contributions allowed by Internal Revenue Code Section 170 included a deduction for the donation made by the fiduciary to the school tuition organization.

The addition required to be made on LA Form IT-541 shall be the amount of the charitable contribution claimed on the fiduciary’s federal return. The addition is limited to the amount of the credit claimed on the return.

Steps		Description
1	Initial Donation	A donor makes an initial donation to a School Tuition Organization (STO) with any applicable stipulations.
2	Verification of Donation	The Louisiana Department of Education (“LDOE”) certifies the donation by verifying the amount of each taxpayer’s donation with the STO.
3	Issue Donor Receipts	The LDOE issues receipts to the STOs for the amount of the donation that will be used on student scholarships. The STO will then distribute these receipts to their donors.
4	Donor Claims Credit on Return	The taxpayer attaches this receipt when filing his income tax return. The taxpayer must have the receipt on or before the due date of the return in order to claim the credit for the preceding tax year.