Community Property
Wisconsin is a community property state along with Arizona, California, Idaho, Louisiana, Nevada, New Mexico,
Texas, and Washington.
Earned Income Credit
Having three dependents will get you the maximum Earned Income Credit in Wisconsin. Only two dependents
are required on your Federal return to receive the maximum credit.
Electronic Filing Errors
Aways check your social security numbers and status of dependents. These are the major areas of errors.
Tuition Deduction
The amount is carried over from your federal with adjustments made for maximum limits.
Veterans
Changes in veterans trust fund donation and veterans and surviving spouses property tax credit.
Out of State
Out of state payments are now accepted for e-file. New for 2008, out of state returns do not have
to be forwarded to WDOR with use of new OS form.
Homestead
Remember, you qualify for the Homestead Credit if you pay rent or real estate taxes and receive less than
$24,500 (To be in the correct frame of mind, remember that you also qualify to win millions by purchasing a lottery ticket
- meaning qulifying does not guarantee you will receive the Homestead Credit). The $24,500 includes support payments
received, Federal/State SSI, Social Security, Grants/Scholarships, and generally any type of public assistance. Qualifing
for the Homestead Credit does not imply that you will receive any credit. The credit is determined by amount of rent/real
estate taxes paid, your income, and a relation between rent and rent/taxes paid. You may receive the credit without
any income. The maximum credit is $1,160.
Ooops
Self prepared returns, paper and electric, have lots of ooops factors. It's fine if you catch them, however, the
ones you miss can cost you a lot of money without you even knowing it, and you then have contributed to the state debt
payment.
Paper
Paper returns will take approx. 12 weeks to process for the 2007 tax filing season.
Help
Need help from the IRS? Via the phone you get the wrong answer 14% of the time, in person 33%, and
via e-mail 36%.
Forget
Forget a W-2 or similare form on your 2007 return? Hold the party. If you have not received
a notice expect one in the summer of 2009.
Owe
If you owe more than $200 to Wisconsin on your return you will owe underpayment interest.
Injured Spouse (for income purposes, not physical)
You must compete the federal injured spouse form when e-filing.
Gambling Deductions
Surprise!!! Wisconsin uses the federal income from the bottom of form 1040 which includes gambling
winnings. Gambling losses are listed on page 2 of federal form 1040 and are not included in your Wisconsin income,
unless you are a professional gambler. The odds that you are a professional gambler are very slim.
Married ?
Wisconsin has a married couple credit which can result in a $480 credit.
Son or Daughter in College/Tech ?
It is best to claim them as a dependent to receive both the Federal and State benifits. Usually the
first two years big bucks are involved. If you forgot in the past you have 3 years to amend the federal and 4 years
to amend the state.
Business or Hobby?
There is a difference and knowing it can save you problems in the future.
Cancelled Debt ?
Cancelled debt is considered income. Exceptions apply, and bankruptcy is one.
Not Like Uncle Sam
You are allowed a capital loss of up to $3,000 on your federal return. Wisconsin allows a capital
loss up to $500. Lose a lot and it could take you 200 years to get the full tax break in Wisconsin :)
