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LA HB198

Bill

Status

Introduced

4/1/2025

Primary Sponsor

Alonzo Knox

Click for details

Origin

House of Representatives

2025 Regular Session

AI Summary

  • Creates a Louisiana state income tax deduction for tip income reported on IRS Forms W-2 (social security tips and allocated tips) and Form 4137 (unreported cash and charge tips)

  • Single, head of household, and married-separate filers receive 100% deduction at AGI of $61,000 or less, with the deduction phasing out by 20% increments until fully eliminated above $65,000 AGI

  • Married-joint filers and qualified surviving spouses receive 100% deduction at AGI of $122,000 or less, phasing out until eliminated above $130,000 AGI

  • Automatically terminates if the federal government amends the Internal Revenue Code to eliminate federal income tax on tip income

  • Effective January 1, 2026, applying to taxable periods beginning on or after that date

Legislative Description

Authorizes an income tax deduction for tip income earned by taxpayers at or below certain income levels (OR DECREASE GF RV See Note)

TAX/INCOME-INDIV/EXEMPT

Last Action

Read by title, under the rules, referred to the Committee on Ways and Means.

4/14/2025

Committee Referrals

Ways and Means4/1/2025

Full Bill Text

No bill text available