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Also of Interest

Louisiana

State Income Taxes and Credits


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Most states levy state income taxes, but the tax burden on low-income families varies significantly depending on where they live. A growing number of states offset this burden with state earned income tax credits and/or state child and dependent care tax credits. These credits are typically based on provisions in the federal income tax code, but states make all decisions regarding eligibility and benefit levels. [More detail...]

Federal decisions are italicized.

Income Tax Liability

Tax threshold

Income tax threshold for single-parent family of 31$12,300/year (2007)
Income tax threshold for two-parent family of 41$17,500/year (2007)

Tax burden

Income tax burden for single-parent family of 3 at 100% FPL1$170/year (2007)
Income tax burden for two-parent family of 4 at 100% FPL1$179/year (2007)

State Earned Income Tax Credit (EITC)

Income eligibility criteria

Income eligibility rules same as federal EITC2Yes (2009)
Income limit for 1-parent family with 2 qualifying children2$40,295/year (2009)3

Benefit level

Refundable credit available2Yes (2009)
Percent of federal EITC23.5% (2009)
Max benefit for family with 2 qualifying children2$176/year (2009)

State Child and Dependent Care Tax Credit

Income eligibility criteria

Income eligibility rules same as for federal credit4Yes (2008)5
Income limit for family with 2 or more qualifying children4No limit (2008)

Eligible expenses

Child care expenses eligible by same rules as federal credit6Yes; however, for the child care expense credit, expenses are limited to care for a child age five and under. (2008)

Benefit level

Refundable credit available4Yes (2008)7
Benefit structure4Credit of 10-50% of federal credit (but if income exceeds $60,000/year, max benefit is $25); an additional credit of 50-200% of state child care credit claimed for expenses at a child care facility rated two stars or higher by the state quality rating system (2008)8
Max benefit for family with 2 qualifying children4$1,050/year (2008)9
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Data Notes and Sources

Data on State Income Taxes and Credits were compiled by NCCP in June 2009. Some state policy decisions may have changed since these data were collected.

  1. Calculations include income tax credits that are available to all low-income families in the state, such as state earned income tax credits.
    Jason A. Levitis and Andrew C. Nicholas, The Impact of State Income Taxes on Low-Income Families in 2007, Center on Budget and Policy Priorities, 2008. Available at: http://www.cbpp.org (Accessed March 19, 2009).
  2. State EITC Online Resource Center, http://www.stateeitc.com (accessed June 3, 2009); with additional information from NCCP.
  3. The limit for a two-parent family with one qualifying child is $40,463 per year ($45,295 per year for two qualifying children and $48,279 with three or more qualifying children).
  4. Nancy Duff Campbell, Joan Entmacher, Amy K. Matsui, Cristina Martin Firvida, and Christie Love, Making Care Less Taxing: Improving State Child and Dependent Care Tax Provisions, National Women's Law Center, 2006; with updates from National Women's Law Center, 2009 Supplement to Making Care Less Taxing, 2006.
  5. In Louisiana, eligible tax filers may claim both a state child care credit as well as a state child care expense credit, which became effective in tax year 2008. The child care expense credit equals a specified percentage (50-200%) of the state child care credit claimed for expenses at a child care facility rated two stars or higher by the state quality rating system.
  6. These include care expenses for children under 13 years that allowed the claimant to work or look for work, up to a maximum of $3,000 per year for one child and $6,000 per year for two or more children. Claimed expenses may not exceed claimant's earnings, or, in two-parent families, the earnings of the lesser-earning parent; full-time students are treated as having $250 per month in earned income (or $500 per month in families with two or more children).
    Nancy Duff Campbell, Joan Entmacher, Amy K. Matsui, Cristina Martin Firvida, and Christie Love, Making Care Less Taxing: Improving State Child and Dependent Care Tax Provisions, National Women's Law Center, 2006; with updates from National Women's Law Center, 2009 Supplement to Making Care Less Taxing, 2006.
  7. Only for tax filers with income of $25,000 per year or less.
  8. This rule applies to child care expenses; a nonrefundable credit of 100 percent of the federal credit is allowed for expenses for dependents physically or mentally incapable of self-care.
  9. Figure reflects the maximum benefit for child care expenses; the maximum benefit for care of dependents physically or mentally incapable of self-care is $1,050 per year for one dependent ($2,100 for two or more).