§79. Credits of individuals against net income

A. Personal exemption.

(1) An exemption of twenty-five hundred dollars is allowed for the taxpayer; and an additional exemption of twenty-five hundred dollars is allowed for the spouse of the taxpayer if a separate return is made by the taxpayer, and if the spouse has no gross income and is not the dependent of another taxpayer for the calendar year in which the taxable year of the taxpayer begins. A person who occupied status as head of family during the entire taxable year is allowed an exemption of five thousand dollars.

(2) In addition to the exemptions above provided for, an exemption of one thousand dollars is allowed for the taxpayer who is blind or who has sustained the loss of one or more limbs or who has an intellectual disability or who is deaf. As used herein the word "blind" shall mean and refer to persons who have been determined by a qualified ophthalmologist or optometrist to have no vision or to have vision which is insufficient for use in an occupation or activity for which sight is essential. For purposes herein, the word "deaf" shall be defined as in Paragraph (B)(5) of this Section. Each person claiming an exemption under the provisions of this Paragraph shall be able to prove such claim by certificate of a qualified physician or optometrist.

B. Credit for dependents.

(1) In general. A credit of four hundred dollars is allowed for each dependent (as defined in Subsection C of this Section),

(a) whose gross income for the calendar year in which the taxable year of the taxpayer begins is less than $600 or

(b) who is a child of the taxpayer and who (i) has not attained the age of nineteen at the close of the calendar year in which the taxable year of the taxpayer begins, or (ii) is a student.

(2) Credit denied in case of certain married dependents. No credit is allowed under this Subsection for any dependent who has made a joint return with his spouse under R.S. 47:101(B), for the taxable year beginning in the calendar year in which the taxable year of the taxpayer begins.

(3) Child defined. For purposes of this Subparagraph (B)(1)(b) of this Subsection, the term "child" means an individual who (within the meaning of Subsection C of this Section) is a son, stepson, daughter, or stepdaughter of the taxpayer.

(4) Student and educational institution defined. For purposes of Item (B)(1)(b)(ii) of this Subsection, the term "student" means an individual who during each of five calendar months during the calendar year in which the taxable year of the taxpayer begins,

(a) is a full-time student at an educational institution; or

(b) is pursuing a full-time course of institutional on-farm training under the supervision of an accredited agent of an educational institution or of a state or political subdivision of a state. For purposes of this Subsection, the term "educational institution" means only an educational institution which normally maintains a regular faculty and curriculum and normally has a regularly organized body of students in attendance at the place where its educational activities are carried on.

(5) Credit for certain dependents. A credit of one thousand dollars is allowed for each dependent as defined in Subsection C of this Section who is blind or deaf or who has sustained the loss of one or more limbs or who has an intellectual disability. As herein used the word "blind" shall be defined as in Paragraph (A)(2) of this Section. For purposes herein, the word "deaf" shall mean and refer to persons whose hearing is so impaired that it is insufficient for use in an occupation or activity for which hearing is essential. The taxpayer claiming credit as herein provided shall be able to prove such claim by certificate of a qualified physician or optometrist issued for each such dependent for which a credit is claimed.

C. Dependent defined.

(1) General definition. For purposes of this Chapter, the term "dependent" means any of the following individuals over half of whose support, for the calendar year in which the taxable year of the taxpayer begins, was received from the taxpayer (or is treated under Paragraph (C)(3) of this Subsection as received from the taxpayer):

(a) a son or daughter of the taxpayer, or a descendant of either,

(b) a stepson or stepdaughter of the taxpayer,

(c) a brother, sister, stepbrother, or stepsister of the taxpayer,

(d) the father or mother of the taxpayer, or an ancestor of either,

(e) a stepfather or stepmother of the taxpayer,

(f) a son or daughter of a brother or sister of the taxpayer,

(g) a brother or sister of the father or mother of the taxpayer,

(h) a son-in-law, daughter-in-law, father-in-law, mother-in-law, brother-in-law, or sister-in-law of the taxpayer,

(i) an individual who, for the taxable year of the taxpayer, has as his principal place of abode the home of the taxpayer and is a member of the taxpayer's household, or

(j) an individual who,

(i) is a descendant of a brother or sister of the father or mother of the taxpayer,

(ii) for the taxable year of the taxpayer received institutional care required by reason of a physical or mental disability, and

(iii) before receiving such institutional care, was a member of the same household as the taxpayer.

(2) Rules relating to general definition. For purposes of this Section the rules set forth below will apply.

(a) The terms "brother" and "sister" include a brother or sister by the halfblood.

(b) In determining whether any of the relationships specified in this Section exists, a child legally adopted by an individual shall be treated as if he were the child of such individual by blood.

(c) The term "dependent" does not include any individual who is not a citizen of the United States unless such individual is a resident of the United States, of a country contiguous to the United States, of the Canal Zone, or of the Republic of Panama. The preceding sentence shall not exclude from the definition of "dependent" any child of the taxpayer born to him, or legally adopted by him, in the Philippine Islands before January 1, 1956, if the child is a resident of the Republic of the Philippines, and if the taxpayer was a member of the Armed Forces of the United States at the time the child was born to him or legally adopted by him.

(d) A payment to a wife which is includible in the gross income of the wife under R.S. 47:42(C) shall not be treated as a payment by her husband for the support of any dependent.

(3) Multiple support agreements. For purposes of Paragraph (C)(1) of this Subsection, over half of the support of an individual for a calendar year shall be treated as received from the taxpayer if:

(a) no one person contributed over half of such support;

(b) over half of such support was received from persons each of whom, but for the fact that he did not contribute over half of such support, would have been entitled to claim such individual as a dependent for a taxable year beginning in such calendar year;

(c) the taxpayer contributed over ten per cent of such support; and

(d) each person described in Subparagraph (C)(3)(b) of this Section (other than the taxpayer) who contributed over ten per cent of such support files a written declaration (in such manner and form as the collector may by regulations prescribe) that he will not claim such individual as a dependent for any taxable year beginning in such calendar year.

(4) Special support test in case of students. Amounts received as scholarships for study at an educational institution by an individual who is:

(a) a son, stepson, daughter, or stepdaughter of the taxpayer (within the meaning of this Section), and

(b) a student, shall not be taken into account in determining whether such individual received more than half of his support from the taxpayer.

D. Exception for certain heads of families. If the taxpayer would not occupy the status of head of family except by reason of there being one or more dependents for whom he would be entitled to credit under Subsection C above the credit under such paragraph shall be disallowed with respect to one of such dependents.

E. Limitation on portion of credit allowable. There shall be allowed only that portion of the credits set forth in the preceding Subsections of this Section which the net income of the individual taxable under this Chapter bears to the total net income of such individual.

Amended by Acts 1952, No. 3, §1; Acts 1956, No. 473, §1; Acts 1957, No. 35, §1; Acts 1958, No. 242, §5; Acts 1962, No. 376, §§1, 2; Acts 1964, No. 236, §1; Acts 1970, No. 201, §1; Acts 1972, No. 577, §1; Acts 1974, No. 182, §1; Acts 2014, No. 811, §25, eff. June 23, 2014.