Frequently Asked Questions
I deducted a casualty loss on either my 2015 or 2016 federal and state return. I received a restore Louisiana recovery grant for that loss in 2019. What do I do?
On your 2019 federal income tax return, the Restore Louisiana recovery grant is taxable because you had previously deducted the disaster casualty loss. Since Louisiana conforms to the federal adjusted gross income calculation, the Restore Louisiana recovery grant is included in Louisiana adjusted gross income. However, the Restore Louisiana recovery grant would be deemed to be hurricane recovery benefits, and it would be allowed as a deduction on the Louisiana return.