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3.23.23 – KALB – (KNOE) – MONROE, La

Some Louisiana tax filers may be seeing a larger than usual tax bill.

A Constitutional Amendment passed by voters in 2021 eliminating a federal income tax deduction took effect for the first time in 2022.

“Now, without that, you see your tax liability for state increase,” Meghan O’Boyle, Accounting and Tax In-Charge at Allen, Green, and Williamson in Monroe, told KNOE. “People are having a higher tax balance for the state, and some people who previously did not owe anything, do owe a state income tax.”

Previously, filers could subtract the amount they paid in federal income tax from their total income, thus bringing down the amount they paid in state income tax.

“For the higher income individuals or for people who previously paid enough in, they are seeing a little bit of a jump in their state tax,” explained O’Boyle.

O’Boyle said the changes will have less of an effect on lower-income individuals because they pay less in federal income taxes.

“It’s just significantly smaller typically,” said O’Boyle. “You still had the decision, but the effect just wasn’t as big.”

It is important to note, state income tax rates were reduced as part of the amendment in 2021, which does reduce the amount a person has to pay.