Frequently Asked Questions
If I amend my federal income tax returns to take advantage of the Federal Housing and Economic Recovery Act of 2008, do I have to amend my Louisiana income tax returns?
No—you are not required to file an amended return with the state of Louisiana even if you file an amended federal return provided the amended return is filed with the IRS for the sole purpose of taking advantage of the Federal Housing and Economic Recovery Act of 2008.
The Louisiana Legislature has specifically disallowed taxation of any hurricane recovery grants received by taxpayers who were adversely affected by Hurricanes Katrina and Rita. Requiring amended state returns in this instance would have the effect of imposing a tax on the hurricane recovery grants. Therefore, for tax years ending before 2008, if the only change to a taxpayer’s federal return is a casualty or net operating loss adjustment allowed by the Federal Housing and Economic Recovery Act of 2008, the taxpayer will not be required to file a Louisiana amended return.