2009 Income Tax Estimator Info

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Act 396 of the 2008 Regular Session of the Louisiana Legislature amended La. Revised Statute 47:32(A) to expand the amount of taxable income to which the four percent and six percent income tax rates are applied. The following table illustrates the changes:

Rate of tax 2008 Tax Year Effective January 1, 2009
Single, married filing separately, or head of household:
2 percent First $12,500 First $12,500
4 percent Next $12,500 Next $37,500
6 percent Over $25,000 Over $50,000
Married filing jointly or qualified surviving spouse:
2 percent First $25,000 First $25,000
4 percent Next $25,000 Next $75,000
6 percent Over $50,000 Over $100,000

The Louisiana income tax calculation begins with the federal adjusted gross income with deductions for federal income tax paid, excess itemized deductions, personal exemptions, and standard and dependency deductions. Based on your filing status, number of dependents, age, and vision disability, the deductions are as follows:

Personal exemption—Standard deduction
  Single individual $4,500
  Married-joint return and a qualified surviving spouse $9,000
  Married-separate return $4,500
  Head of household $9,000
Dependency deductions
  Deductions for each dependent $1,000
  Deduction for taxpayer and/or spouse who is over 65 years old $1,000
  Deduction for taxpayer and/or spouse who is blind $1,000

Although the tax bracket changes are effective January 1, 2009, the income tax withholding tables reflecting the changes will not be effective until July 1, 2009.

Taxpayers who will most likely benefit from the income tax bracket changes are taxpayers who file single, married filing separately, or head of household and whose taxable income is more than $30,000, and taxpayers who are married filing jointly or filing as a qualified surviving spouse and whose taxable income is over $60,000. The maximum income tax savings for single taxpayers is $500 and $1,000 for married taxpayers.

Because the revised income tax withholding tables will not be in effect until July 1, 2009, some taxpayers may choose to revise their Employee Withholding Exemption Certificate, Form L-4, to provide a temporary reduction to their state income tax withholdings. The temporary reduction would only be in effect from January 1, 2009, through June 30, 2009, because the revised withholding tax tables will go into effect July 1.

To determine if the new tax benefits will result in a tax savings, use the 2009 Income Tax Estimator.

To use the estimator, you will need the following information:

  • Estimate of your 2009 adjusted gross income.
  • Your 2009 filing status.
  • Your paycheck frequency, such as weekly, monthly, every two weeks, twice a month.

Once you provide the information, the tax estimator will calculate your estimated taxes using the 2008 tax brackets and the new 2009 tax brackets. If a tax savings is projected, the estimator will calculate the tax reduction amount for each paycheck frequency during the six-month period before the withholding tax tables are revised.

Once your paycheck tax reduction is estimated, you may complete the special “Temporary” L-4 Form R-1300T and specify the withholding reduction for each paycheck.

Please note that you are not required to adjust your withholding, especially if the estimated income tax savings is small. If the changes to the 2009 tax brackets ultimately result in an overpayment of your 2009 withholding tax, you will receive a refund when you file your 2009 tax return.

The 2009 Income Tax Estimator is an estimate of tax liabilities based on historical tax return data. In making the estimate, average federal income tax deductions, standard and personal exemptions, and dependency deductions are assumed. There are many income tax exemptions and credits that could result in lower tax liabilities than the estimated amounts. Remember—the result is an estimate to be used only for guidance. It is not a precise calculation of a taxpayer’s 2009 Income Tax Liability.