Are you losing the Lottery Credit? If you own a home that is your primary home check your tax bill to verify the lottery
credit is listed. This is not an income tax issue, however, we provide the forms as a service.
Another issue not tax related is reporting sales tax on form ST-12 if you have a business. Annual reporting is due by
January 31, 2021.
Forms are available for above two items at www.foxtax.com and selecting the "Internet Links" option. Both are
listed under WI.
WI to Hold Select Returns
WI DOR will select certain individual income tax returns for identity verification. 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
When filing 2019 Homestead in 2020 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 April 15, 2021 Extensions
due October 15, 2021.
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"
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 $6,972
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
Late filing fees for WI filers are $50 for individuals
after April 15th, or October 15th if an extension is filed. Other states vary.
Insurance premiums out-of-pocket
are deductible from WI income.
Day Care maximum, $3,000.
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
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 and file ST-12. 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.
Guidelines for filing WI Homestead for 2020.
To qualify for homestead credit for 2020 you must:
Be a legal resident of Wisconsin for all of 2020, from January 1
through December 31.
Be 18 years of age or older on December 31, 2020.
Have less than $24,680 in household
income for 2020. (See the definition of "household income" below.)
Meet one of the following conditions:
(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 2020.
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
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 is all your
income reportable for Wisconsin income tax purposes and all items specifically identified on lines 9a through 11i of Schedule
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