House Bill No. by Representative Glorioso amends R.S. 47:116(A) to establish new requirements for filing declarations of estimated income tax. 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 a lawsuit settlement 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 debt collection related to tort claims, and factoring contracts associated with medical provider 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 specifically for debts forgiven under the outlined circumstances, effective for tax periods beginning on or after January 1, 2025. The provisions of the bill will take effect upon the governor's signature or after the designated time for gubernatorial action if not signed.

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