Hal_Al
Level 15

State tax filing

Statement (S). "However, Louisiana is collecting taxes on the total amount listed on the W2."

Comment (C). That is correct.  The box 1 amount on the W-2  is totally taxable, by federal and state. There are no deductions allowed.

 

(S). "I should not have to pay $2300 in state taxes."

(C).  That does seem high, depending on how much is in box 1 of the W-2. There's probably something else wrong. 

 

(S).  "I have a 1098T to reduce the tuition payments paid directly to the school."

(C). That doesn't make sense.  You may be allowed to claim a federal tuition credit of up to $2500, depending on what's in boxes 1 and 5 on the 1098-T.  But that won't help you on the state return.