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WI to Hold Select Returns
WI DOR will select certain individual income tax returns for identity verification beginning with the 2016 tax filing
season. You will receive a letter requesting you to answer questions in a short quiz (about 4 questions), which you
should know. Your refund will be released after you pass, ie., answer the questions correctly. This is an effort
to reduce identity theft. NOTE: If you receive this notice there is probably a reason, and suggest you check your credit
card, bank accounts, etc. in case of identity issues.
When filing 2017 Homestead in 2018 and under the age of 62 and not disabled, claimant must have earned income to qualify.
Disabled individuals need to prove their disability. Read definitions at bottom of this page.
WI offers you a choice to submit additional ID if a question of identity theft has occurred
in the past. There are several forms of ID the most common being a drivers license and a checking/savings
account (or similar). We suggest this procedure if you have had any type of identity issues or your information being
hacked, including credit card, financial accounts, employer, medical, etc. in the past.
If you have had identity issues, providing the above may help you avoid a hold on your WI return.
Tax returns are due Tuesday, April 17, 2018
Extensions due October 15, 2018.
Earned Income Credit is a percentage of Federal EIC
Tuition subtraction for private schools K-8, $4,000; 9-12, $10,000. This does NOT include "pre"
K.
Social Security, Military uniformed services and Railroad retirement benefits
are not taxable to Wisconsin. Also, WI state teachers, Federal civil
service, and some Milwaukee city/county IF members of system on 12/31/1963.
Tuition subtraction increased to $6,958
per student subject to phase out. WI and MN have tuition reciprocity
Standard mileage deduction for Homestead purposes
is 21 cents.
Debt forgiveness is taxable in WI. Insolvency and bankruptcy is
not.
Late filing fees are $50 for individuals.
Insurance
premiums out-of-pocket are deductible from WI income.
Day Care maximum, $3,000.
Medical
insurance premiums paid out of pocket offer a subtraction for WI taxpayers.
A child does not have to be a dependent in order for you to deduct contributions to an authorized college savings
account.
Gambling Winnings are taxable. You are able to deduct losses, HOWEVER, there are conditions. Basically, whatever
your net is in a session is considered income if a profit. Losses in a session are not allowed. Ex: If you
play the slots in the AM then eat lunch and play in the PM, each is a different session. So.... if you win in the AM
and lose in the PM, PM loses do not apply to AM winnings. For more exact information click below:
If you are operating as a seller in WI you are required to have a seller's permit. If you have a seller's permit and cease
operation you must notify the state. A Class H felony can be filed for filing a false income tax return with intent to evade
or obtain a tax credit.
Money received for renting your home may be subject to state sales tax and local taxes. Contact the Wisconsin Department
of Revenue. Wisconsin Sales & Use Tax Return, form ST-12, available on our Internet Links page under Wisconsin.
New guidelines for filing WI Homestead for 2017.
To qualify for homestead credit for 2017 you must:
Be a legal resident of Wisconsin for all of 2017, from January 1
through December 31.
Be 18 years of age or older on December 31, 2017.
Have less than $24,680
in household income for 2017. (See the definition of "household income" below.)
Meet one of the following
conditions (new for the 2017 claims filed in 2018):
1 You (or your spouse, if married) have earned income during
the year.
2 You (or your spouse, if married) are disabled. (See definition of "disabled".)
3 You
(or your spouse, if married) are 62 years of age or older at the end of 2017.
If you are disabled you are required
to furnish proof of one of the following:
a. Physician's Statement: A statement from your physician which states
the beginning date of the disability and that you meet the definition of disabled, as described above.
b. Veteran's
Statement: A statement from the Veteran's Administration certifying that the claimant is receiving a disability benefit due
to 100 percent disability.
c. Social Security Administration Document: A document or copy of a document from the Social
Security Administration stating the date the disability began
SSI statements on government letterheads, and
social security statements qualify as proof.
Household income
Household income is all your income
reportable for Wisconsin income tax purposes and all items specifically identified on lines 9a through 11i of Schedule H.
Note:
"Household income" includes certain nontaxable income such as social security and supplemental security income (SSI)
benefits; pensions and annuities; unemployment compensation; capital gains; contributions to IRAs and Keogh, SEP, SIMPLE,
and deferred compensation plans; court ordered support money and maintenance payments; scholarships, fellowships, and grants; military
compensation; interest on U.S. government securities; county relief benefits; cash public assistance (Wisconsin Works (W2),
Kinship care, etc.); and all depreciation and depletion claimed in computing Wisconsin taxable income. This list is not all-inclusive.
To
claim Homestead with the sale of your home, Schedule GL is required.
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