BATON ROUGE – For most Louisiana taxpayers, the deadline for filing and paying their 2020 Louisiana state income taxes is June 15, 2021. The filing and payment deadline is extended to Aug. 16 for those whose homes, principal places of business, critical tax records or paid tax preparers are in five parishes declared federal disaster areas following severe storms and flooding on May 17, 2021:
No late filing penalties, late payment penalties or interest will apply to returns or payments submitted by the extended Aug. 16 deadline in the parishes listed above.
Read Revenue Information Bulletin 21-015 for more information.
COVID-19 relief exempt from state taxes
COVID-19 relief benefits are exempt from state taxes for all Louisiana taxpayers who received them during the 2020 tax year.
Frontline Worker Rebates
Act 12 of the 2020 First Extraordinary Session of the Louisiana Legislature provided for a one-time $250 rebate for eligible workers earning $50,000 per year or less, who spent at least 200 hours responding to or mitigating the COVID-19 crisis from March 22, 2020, through May 14, 2020. Under Act 54 of the 2021 Regular Session of the Louisiana Legislature, signed into law by Gov. John Bel Edwards, the frontline worker rebates are not subject to Louisiana state income tax. The exemption is retroactive. Any taxpayer who received these funds, but has filed their 2020 state income tax return already, can submit an amended return to reduce their taxable income.
Main Street Recovery Program
Act 311 of the 2020 Regular Session of the Louisiana Legislature allocated federal CARES Act funds to provide grants of up to $15,000 to eligible small businesses through a program administered by the Louisiana Department of Treasury. Under Act 54, funds disseminated through this program are not subject to Louisiana state income tax. The exemption is retroactive. Any taxpayer who received these funds, but has filed their 2020 state income tax return already, can submit an amended return to reduce their taxable income.
The first $10,200 of unemployment benefits paid to Louisiana residents who received them in 2020 are not subject to Louisiana state income tax.
The federal American Rescue Plan, signed into law on March 11, 2021, excludes from gross income the first $10,200 of unemployment benefits received in 2020 by taxpayers with incomes less than $150,000. The tax relief extends to individuals who received benefits through state unemployment insurance programs, including any increased benefits from the federal CARES Act and other federal relief legislation. For state tax purposes, the first $10,200 of unemployment benefits will not be included in the calculation of adjusted gross income for Louisiana income tax.
For married couples filing jointly, the exclusion applies to the first $10,200 received by each spouse.
Economic Impact Payments
The federal Coronavirus Aid, Relief and Economic Security (CARES) Act provided Economic Impact Payments of $1,200 for qualifying individuals and $2,400 for qualifying married couples, with an additional $500 per dependent child. Under the Coronavirus Response and Relief Supplemental Appropriations Act, passed as part of the Consolidated Appropriations Act of 2021, (CARES II), individuals began receiving automatically a second round of Economic Impact Payments of up to $600 for individuals or $1,200 for married couples and up to $600 for each qualifying child beginning in December. The payments are refundable tax credits and are not considered taxable income for federal or state tax purposes. They are not subject to Louisiana state income tax.
Paycheck Protection Program
The Paycheck Protection Program (PPP) established by the CARES Act, provides small businesses with funding for payroll costs, mortgage interest, rent, and utilities. The PPP loans are forgivable under certain conditions and the loan forgiveness is not taxable income for federal tax purposes. The PPP loan forgiveness is not subject to Louisiana state income tax.
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