See also ch. HS 3
, Wis. adm. code.
(10) Credits not allowed.
The credits under s. 71.28 (4)
may not be claimed by partners, including partners of a publicly traded partnership treated as a corporation under s. 71.22 (1k)
, members of a limited liability company, including members of a limited liability company treated as a corporation under s. 71.22 (1k)
, or shareholders of a tax-option corporation.
History: 1987 a. 312
; 1987 a. 411
; 1987 a. 419
; 1989 a. 31
; 1991 a. 39
; 1993 a. 16
; 1995 a. 27
, 9116 (5)
; 1995 a. 209
; 1997 a. 27
; 1999 a. 5
; 1999 a. 150
; 1999 a. 198
; 2001 a. 16
; 2003 a. 72
; 2005 a. 25
; 2007 a. 11
; s. 13.92 (2) (i).
If the tax imposed on a natural person, married couple filing jointly, trust, or estate under s. 71.02
, not considering the credits under ss. 71.07 (1)
, and (9e)
, 71.28 (1dd)
, and (3w)
, and 71.47 (1dd)
, and (3w)
, and subchs. VIII
and payments to other states under s. 71.07 (7)
, is less than the tax under this section, there is imposed on that natural person, married couple filing jointly, trust or estate, instead of the tax under s. 71.02
, an alternative minimum tax computed as follows:
NOTE: Sub. (1) (intro.) is shown as affected by 2 acts of the 2007 Wisconsin legislature and as merged by the legislative reference bureau under s. 13.92 (2) (i).
Adjust the alternative minimum taxable income, as defined in section 55
(b) (2) of the internal revenue code, by the amounts under s. 71.05 (6)
, except s. 71.05 (6) (a) 13.
and (b) 5.
, by the amounts needed to modify federal alternative tax net operating loss deductions to reflect differences between Wisconsin net operating loss deductions and federal net operating loss deductions for minimum tax purposes. The department of revenue shall by rule define Wisconsin net operating loss deductions for minimum tax purposes.
Subtract the amount under section 57
(a) (5) of the internal revenue code from the amount under par. (a)
For stocks acquired after December 31, 1987, under incentive stock options, as defined in section 422A
(b) of the internal revenue code:
At the time that the incentive stock option is included in alternative minimum taxable income under section 56
(b) (3) of the internal revenue code, subtract from the amount in par. (b)
20% of the amount included in federal alternative minimum taxable income under section 56
(b) (3) of the internal revenue code.
At the time that the stock that was subject to subd. 1.
is disposed of, add 20% of the gain or loss adjustment resulting from the basis adjustment made under section 56
(b) (3) of the internal revenue code to the amount in par. (b)
For nonresidents and part-year residents, adjust the amount under par. (bm)
so that itemized deductions and personal exemptions are prorated on the basis of the ratio of Wisconsin adjusted gross income to federal adjusted gross income.
Subtract from the amount under par. (c)
the appropriate amount under section 55
(d) (1) and (3) of the internal revenue code; except that surviving spouses shall be treated as single individuals; except that the amount under par. (c)
, not the federal alternative minimum taxable income, shall be used in calculating the phase-out and except that for nonresidents and part-year residents the amount under section 55
(d) (1) and (3) of the internal revenue code shall be prorated on the basis of the ratio of Wisconsin adjusted gross income to federal adjusted gross income.
(2) Joint liability.
If the requirements under sub. (1)
are applicable and the spouses file a joint income tax return, they shall file a joint minimum tax return and are jointly and severally liable for the tax imposed under sub. (1)
and for the interest, penalties, fees, additions to tax and additional assessments with respect to the tax.
The department of revenue shall have full power to impose, enforce and collect the minimum tax provided in this section and may take any action, conduct any proceeding and in all respects proceed as it is authorized in respect to income taxes imposed in this chapter. The income tax provisions in this chapter relating to assessments, refunds, appeals, collection, interest and penalties shall apply to the minimum tax.
(4) Tax benefit rule.
The department of revenue shall promulgate rules to provide that the amount under sub. (1)
may be reduced to prevent the inclusion of any amounts, except the federal standard deductions, itemized deductions and personal exemptions, that do not reflect a benefit in respect to the tax imposed under s. 71.02
History: 1987 a. 312
; 1989 a. 31
; 1991 a. 39
; 1995 a. 27
; 1997 a. 27
; 1999 a. 9
; 2001 a. 109
; 2003 a. 99
; 2005 a. 25
; 2007 a. 20
; s. 13.92 (2) (i).
Payment of estimated taxes. 71.09(1)
In this section:
"Farmers or fishers" are individuals, estates or trusts whose estimated gross income from farming or fishing for the taxable year is at least two-thirds of the total estimated gross income from all sources for the taxable year or individuals, estates or trusts whose gross income from farming or fishing for the preceding taxable year was at least two-thirds of the total gross income from all sources shown on that return. If a person files a joint return, the income of both that person and that person's spouse shall be considered in determining whether the person is a farmer or fisher.
"Return" means a return that would show the tax properly due.
"Tax shown on the return" and "tax for the taxable year" mean the net tax imposed under s. 71.02
after reduction for exemptions to, and credits against, that tax but before reduction by amounts withheld under subch. X
and before reduction for amounts paid as estimated tax under this section for that tax plus the tax imposed under s. 71.08
before reduction for amounts paid as estimated tax under this section for that tax plus the surcharge imposed under s. 77.93
before reduction for amounts paid as estimated tax under this section for that surcharge.
(2) Who shall pay.
Every individual, estate and trust deriving income subject to taxation under this chapter, other than wages as defined in s. 71.63 (6)
upon which taxes are withheld by the individual's employer under subch. X
, shall pay estimated income tax, the surcharge under s. 77.93
and alternative minimum tax. This section does not apply to any person on active duty with the U.S. armed forces while stationed outside the continental United States. This section does not apply to any taxable year ending before the date 2 years after the date of a decedent's death with respect to the estate of such decedent or any trust all of which is treated under subpart E of part I of subchapter J of chapter 1
of the internal revenue code as owned by the decedent and to which the residue of the decedent's estate will pass under his or her will. This section does not apply to any trust that is subject to tax under this chapter on unrelated business taxable income as defined under section 512
of the internal revenue code. Those trusts are subject to estimated tax payments under s. 71.29
(3) Farmers or fishers.
Payments of estimated income tax required by sub. (2)
from farmers or fishers may be made at any time on or before the 15th day of the first month of the succeeding taxable year.
(4) Farmers or fishers exception.
Except as provided in sub. (1) (am)
, if on or before the first day of the 3rd month of the succeeding taxable year a farmer or a fisher files a return for the taxable year, for which estimated taxes were required on or before the 15th day of the first month of the succeeding taxable year under sub. (3)
, and pays in full the amount computed on the return as payable, then that payment satisfies any required estimated tax installments.
The amount of the estimated income tax shall be the total estimated tax, including surtaxes, if any, reduced by the amount, if any, the individual, estate or trust determines will be withheld from wages pursuant to subch. X
(7) Refund carry-forward.
If the taxpayer claims a refund on any tax return and, concurrent with or subsequent to the filing of the return upon which such refund is claimed, is required to pay an estimated tax, and at the time of paying that tax the refund has not been paid, he or she may deduct the amount of such refund from the first installment of estimated taxes, and any excess from the succeeding installments. If a refund is paid after the due date of the last installment, its receipt shall be reflected on the income tax return covering the year. If the refund is disallowed in whole or in part after the due date of the last installment, that disallowance must be reflected on the income tax return covering the year.
Any installment of the estimated tax under this section may be paid prior to the date prescribed for its payment.
(9) Short year.
Application of this section to taxable years of less than 12 full months shall be made pursuant to rules of the department.
See also s. Tax 2.89
, Wis. adm. code.
When the amount of an installment payment of estimated tax exceeds the amount determined to be the correct amount of such installment payment, the overpayment shall be credited against the unpaid installment, if any.
(11) Exceptions to interest.
No interest is required under s. 71.84 (1)
if any of the following conditions apply:
The tax shown on the return or, if no return is filed, the tax, minus amounts withheld under subch. X
, is less than $200.
The preceding taxable year was 12 months, the taxpayer had no liability under s. 71.02
for that year and the taxpayer was a resident of this state for all of that year.
The secretary of revenue determines that because of casualty, disaster or other unusual circumstances it is not equitable to impose interest.
The secretary of revenue determines that the taxpayer retired during the taxable year or during the preceding taxable year after having attained age 62 or becoming disabled and that the underpayment was due to reasonable cause and not due to willful neglect.
(12) Installment due dates.
Taxpayers shall make estimated payments in 4 installments, on or before the 15th day of each of the following months:
Except as provided in pars. (b)
, the amount of each installment required under sub. (12)
is 25% of the lower of the following amounts:
Ninety percent of the tax shown on the return for the taxable year or, if no return is filed, 90% of the tax for the taxable year.
The tax shown on the return for the preceding year. If a husband and wife who filed separate returns for the preceding taxable year file a joint return, the tax shown on the return for the preceding year is the sum of the taxes shown on the separate returns of the husband and wife. If a husband and wife who filed a joint return for the preceding taxable year file separate returns, the tax shown on the return for the preceding year is the husband's or wife's proportion of that tax based on what their respective tax liabilities for that year would have been had they filed separately.
(b) Paragraph (a) 2.
does not apply if the preceding taxable year was less than 12 months or if the taxpayer did not file a return for the preceding taxable year.
(c) Paragraph (a) 2.
does not apply if the taxpayer is an estate or trust and has a taxable income of $20,000 or more.
If 22.5% for the first installment, 45% for the 2nd installment, 67.5% for the 3rd installment and 90% for the 4th installment of the tax for the taxable year computed by annualizing, under methods prescribed by the department of revenue, the taxpayer's income for the months in the taxable year ending before the installment's due date is less than the installment required under par. (a)
, the taxpayer may pay the amount under this paragraph rather than the amount under par. (a)
. Any taxpayer who pays an amount calculated under this paragraph shall increase the next installment computed under par. (a)
by an amount equal to the difference between the amount paid under this paragraph and the amount that would have been paid under par. (a)
. The income of any estate or trust for the months in the taxable year ending before the date one month before the due date for the installment shall be annualized in calculating the installments under this paragraph.
(14) Exception to final installment.
If a taxpayer files a return for a calendar year on or before January 31 of the succeeding calendar year (or if a taxpayer on a fiscal year basis files a return on or before the last day of the first month immediately succeeding the close of such fiscal year) and pays in full at the time of such filing the amount computed on the return as payable, then, if estimated taxes are not required to be paid on or before the 15th day of the 9th month of the taxable year but are required to be paid on or before January 15 of the succeeding taxable year (or the date corresponding thereto in the case of a fiscal year), such return shall be considered as such payment.
Any individual deriving income from wages, as defined in s. 71.63 (6)
, which is subject to taxation under this chapter who pays 100% of the estimated tax for the following calendar or taxable year on or before the last day of the current calendar or taxable year is entitled to complete exemption from payroll withholding under subch. X
for such following calendar or taxable year.
No employer shall recognize exemption from payroll withholding for any employee who does not furnish a certificate prepared by the department of revenue satisfactorily showing that the employee has paid the estimated tax within the time and manner prescribed in this subsection with respect to the calendar or taxable year for which such exemption is sought.
So far as applicable the additions to tax prescribed in this section shall apply to estimated taxes paid under this subsection.
No employer shall force or attempt to coerce an employee into estimating and prepaying his or her income taxes. The penalty under s. 71.83 (2) (a) 4.
applies to any employer who violates this paragraph.
(16) Joint payments.
Married persons may jointly pay estimated taxes unless either spouse is a nonresident alien or the spouses have different taxable years. If they do pay jointly, the provisions under this section applicable to individuals are applicable to the married persons jointly. If a married person files a separate return for a taxable year for which a joint payment was made, the payments may be allocated between themselves as they choose, but if they do not agree on an allocation the department of revenue shall allocate the payments to each spouse on the basis of the ratio of taxes shown on their separate returns or pursuant to default assessment under s. 71.74 (3)
. If either spouse pays separately, no part of the payment may be allocated to the other spouse.
General provisions. 71.10(1)(1)
Allocation of gross income, deductions, credits between 2 or more businesses.
In any case of 2 or more organizations, trades or businesses (whether or not incorporated, whether or not organized in the United States and whether or not affiliated) owned or controlled directly or indirectly by the same interests, the secretary or the secretary's delegate may distribute, apportion or allocate gross income, deductions, credits or allowances between or among such organizations, trades or businesses, if the secretary determines that such distribution, apportionment or allocation is necessary in order to prevent evasion of taxes or clearly to reflect the income of any of such organizations, trades or businesses.
(2) Assessment of income distributable to a nonresident beneficiary.
The income of a trust distributable or distributed to a nonresident beneficiary shall be assessed as the income of other nonresidents is assessed. No personal exemptions shall be allowed in assessing the income of such nonresident beneficiary unless that person makes a complete return under this chapter.
Every individual filing an income tax return who has a tax liability or is entitled to a tax refund may designate $1 for the Wisconsin election campaign fund for the use of eligible candidates under s. 11.50
. If the individuals filing a joint return have a tax liability or are entitled to a tax refund, each individual may make a designation of $1 under this subsection.
The secretary of revenue shall provide a place for those designations on the face of the individual income tax return and shall provide next to that place a statement that a designation will not increase tax liability. Annually on August 15, the secretary of revenue shall certify to the government accountability board, the department of administration and the state treasurer under s. 11.50
the total amount of designations made during the preceding fiscal year. If any individual attempts to place any condition or restriction upon a designation, that individual is deemed not to have made a designation on his or her tax return.
The names of persons making designations under this subsection shall be strictly confidential.
(4) Computation order.
Notwithstanding any other provisions in this chapter, all persons other than corporations computing liability for the tax under s. 71.02
shall make computations in the following order:
Alternative minimum tax under s. 71.08
, including any surtax on alternative minimum tax.