Keeping up with the tax code

There are several new changes to Louisiana’s tax code that are worth noting, especially if you have children. A few months ago, lawmakers created the School Readiness Child Care Expense Tax. If you paid child care for a dependent under the age of six who attended a facility last year that is participating in the state’s Quality Star Rating program, then you qualify. Just ask your daycare or facility to provide you with their “Form R-10614.” There’s also the Louisiana Earned Income Credit to file for this year, which is equal to 3.5% of the Federal Earned Income Tax Credit, if you’re eligible for it. As for the current year, it’s not too early to start planning for the School Tuition and Expense Tax Deduction, which will be ready for use on your 2009 return, due May 15, 2010. It allows for a deduction for tuition, fees, some supplies and certain expenses paid on or after Jan. 1 of this year. But, as usual, don’t expect the Department of Revenue to take your word for it when it comes to claiming those out-of-pocket costs. “We encourage taxpayers to keep all related receipts so they can claim the deduction,” says Secretary of Revenue Cynthia Bridges.—Jeremy Alford