Louisiana Provides Certain Terminal Illness Income Tax Deduction

The Louisiana Governor signed a law that includes: 1) providing an individual income tax deduction for amounts that a qualifying taxpayer receives in a taxable year through hardship distributions from one or more retirement accounts; and 2) providing that a qualifying taxpayer means a taxpayer, and a taxpayer’s spouse for joint filers, who has been diagnosed with a terminal illness by a licensed physician. The law takes effect on Jan. 1, 2026, and is applicable to taxable periods beginning on or after Jan. 1, 2026. [H.B. 184, enacted 06/11/25]

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