House Bill No. by Representative Glorioso amends R.S. 47:116(A) to establish new requirements for filing declarations of estimated income tax in Louisiana. The bill stipulates that individuals whose estimated Louisiana income tax liability is expected to exceed $300, after deducting all allowable credits, must file a declaration of estimated tax for any debt forgiven due to the settlement of a lawsuit or debts forgiven by businesses that have entered into specific agreements with the taxpayer. These agreements include financing litigation, purchasing accounts receivable from medical providers for the collection of medical debts related to tort claims, and factoring contracts associated with such debts.

The bill retains the existing requirement that individuals with an estimated tax liability exceeding $1,000 must file a declaration, but it introduces the new threshold of $300 for certain forgiven debts starting from tax years beginning on or after January 1, 2025. The provisions of this Act will take effect upon the governor's signature or after the expiration of the time for bills to become law without the governor's signature.

Statutes affected:
HB19 Original: 47:116(A)