Tax 14.03(4)(b)3. 3. Cash public assistance and county relief, including the following:
Tax 14.03(4)(b)3.a. a. Aid to families with dependent children, or "AFDC."
Tax 14.03(4)(b)3.b. b. Wisconsin works, or "W-2" payments.
Tax 14.03(4)(b)3.c. c. Non-legally responsible relative, or "NLRR" AFDC payments or kinship care payments under s. 48.57, Stats. These are payments received as a relative other than a parent, for caring for a dependent child in the claimant's homestead.
Tax 14.03(4)(b)3.d. d. Cash benefits paid by counties under s. 59.53 (21), Stats.
Tax 14.03(4)(b)3.e. e. Reimbursement from a governmental agency for amounts originally paid for by the recipient, not including cash reimbursements for home energy assistance or for services under Title XX of the federal social security act and community options program, or "COP" payments under s. 46.27, Stats.
Tax 14.03(4)(b)3.f. f. Adoption assistance payments under Title IV-E of the federal social security act or from another state, or payments by the Wisconsin department of children and families under s. 48.975, Stats., to adoptive parents of children having special needs as described in s. DCF 50.03 (1) (b).
Tax 14.03(4)(b)3.g. g. Veterans administration payments for reimbursement of services purchased by the recipient.
Tax 14.03(4)(b)3.h. h. Federal housing and urban development, or "H.U.D." payments for housing.
Tax 14.03(4)(b)3.i. i. Disaster relief grants under the federal disaster relief act of 1974.
Tax 14.03(4)(b)4. 4. The gross amount of a pension or annuity, including:
Tax 14.03(4)(b)4.a. a. Railroad retirement benefits.
Tax 14.03(4)(b)4.b. b. Veterans' disability pensions.
Tax 14.03(4)(b)4.c. c. Any amounts withheld by the payor.
Tax 14.03(4)(b)4.d. d. Nontaxable recoveries of cost.
Tax 14.03(4)(b)4.e. e. Disability income exclusions from taxable income.
Tax 14.03 Note Example: Gross amount of a pension. A claimant was entitled to a pension of $8,000 during the year but received only $5,600 after $2,400 was withheld by the payor for payment of health insurance premiums for the claimant. Of the $8,000 pension, $2,000 was a return of the claimant's contribution.
Tax 14.03 Note The gross pension of $8,000 must be included in income.
Tax 14.03(4)(b)5. 5. Except as provided in subd. 3. e., all payments received for the benefit of a claimant or a member of the claimant's household under the federal social security act, including:
Tax 14.03(4)(b)5.a. a. All federal social security retirement, disability or survivorship benefits.
Tax 14.03(4)(b)5.b. b. Lump sum death benefits.
Tax 14.03(4)(b)5.c. c. Medicare premiums deducted from social security benefits received by all members of a household.
Tax 14.03(4)(b)5.d. d. Supplemental security income, or "SSI" benefits received by persons over 65 years of age, or blind or disabled.
Tax 14.03(4)(b)5.e. e. Supplemental security income - exceptional needs, or "SSI-E" payments under s. 49.77 (3s), Stats.
Tax 14.03(4)(b)6. 6. Compensation and other cash benefits received from the United States for past or present service in the armed forces.
Tax 14.03(4)(b)7. 7. Payments made to surviving widows, widowers or parents of veterans by the United States, but not including insurance proceeds received by beneficiaries of National Service Life Insurance.
Tax 14.03(4)(b)8. 8. Proceeds from a personal endowment insurance policy or annuity contract purchased by the recipient.
Tax 14.03(4)(b)9. 9. The gross amount of "loss of time" insurance proceeds.
Tax 14.03(4)(b)10. 10. Nontaxable interest received from the federal government or any of its instrumentalities, or from state or municipal bonds.
Tax 14.03(4)(b)11. 11. Scholarship and fellowship gifts or income and other educational grants, not including student loans.
Tax 14.03(4)(b)12. 12. Unemployment insurance, including railroad unemployment compensation.
Tax 14.03(4)(b)13. 13. Workers' compensation.
Tax 14.03(4)(b)14. 14. Capital gains not included in Wisconsin adjusted gross income, but not including a nonrecognized gain from an involuntary conversion under s. 1033 of the internal revenue code.
Tax 14.03(4)(b)15. 15. A gain on the sale of a personal residence excluded under s. 121 of the internal revenue code. A gain on the sale of a personal residence which would be reportable under the installment sale method if taxable may be reported either in full in the year of sale or each year as payments are received.
Tax 14.03(4)(b)16. 16. Dividends not included in Wisconsin adjusted gross income.
Tax 14.03(4)(b)17. 17. Income of a nonresident or part-year resident married to a full-year resident of Wisconsin.
Tax 14.03(4)(b)18. 18. A housing allowance provided to a member of the clergy.
Tax 14.03(4)(b)19. 19. The amount by which a resident manager's rent is reduced.
Tax 14.03(4)(b)20. 20. Income of a Native American which is nontaxable under ch. 71, Stats.
Tax 14.03(4)(b)21. 21. Income from sources outside of Wisconsin which is nontaxable under ch. 71, Stats.
Tax 14.03(4)(b)22. 22. Nontaxable deferred compensation.
Tax 14.03(4)(b)23. 23. The following items deducted in determining Wisconsin adjusted gross income, including items deducted in arriving at partnership and tax-option "S" corporation income or losses reported as a part of Wisconsin adjusted gross income:
Tax 14.03(4)(b)23.a. a. Intangible drilling costs.
Tax 14.03(4)(b)23.b. b. Depletion allowances.
Tax 14.03(4)(b)23.c. c. Depreciation, including that portion of the standard mileage rate which is determined under the internal revenue code to be depreciation.
Tax 14.03(4)(b)23.d. d. Expenses deducted under s. 179 of the internal revenue code, regarding the election to expense certain depreciable business assets.
Tax 14.03(4)(b)23.e. e. Amortization.
Tax 14.03(4)(b)23.f. f. Contributions to individual retirement accounts under s. 219 of the internal revenue code, including contributions to individual retirement arrangements, or "IRA's," and simplified employee pension plans, or "SEP's."
Tax 14.03(4)(b)23.g. g. Contributions to Keogh plans.
Tax 14.03(4)(b)23.h. h. Net operating loss carryforwards.
Tax 14.03(4)(b)23.i. i. Capital loss carryforwards.
Tax 14.03(4)(c) (c) The following items deducted in determining Wisconsin adjusted gross income, including items deducted in arriving at partnership, limited liability company and tax-option "S" corporation income or losses reported as a part of Wisconsin adjusted gross income:
Tax 14.03(4)(c)1. 1. Intangible drilling costs.
Tax 14.03(4)(c)2. 2. Depletion allowances.
Tax 14.03(4)(c)3. 3. Depreciation, including that portion of the standard mileage rate which is determined under the internal revenue code to be depreciation.
Tax 14.03(4)(c)4. 4. Expenses deducted under s. 179 of the internal revenue code, regarding the election to expense certain depreciable business assets.
Tax 14.03(4)(c)5. 5. Amortization.
Tax 14.03(4)(c)6. 6. Contributions to individual retirement accounts under s. 219 of the internal revenue code, including contributions to individual retirement arrangements, or "IRAs," savings incentive match plans for employees, or "SIMPLEs" and simplified employee pension plans, or "SEPs."
Tax 14.03(4)(c)7. 7. Contributions to Keogh plans.
Tax 14.03(4)(c)8. 8. Net operating loss carryforwards.
Tax 14.03(4)(c)9. 9. Capital loss carryforwards.
Tax 14.03(5) (5)Exclusions from income.
Tax 14.03(5)(a)(a) Under s. 71.52 (6), Stats., income does not include the following:
Tax 14.03(5)(a)1. 1. Amounts described in sub. (4) (b) 1., 3. e., 7., 11. and 14. as not being includable.
Tax 14.03(5)(a)2. 2. Gifts from natural persons, including voluntary support payments.
Tax 14.03(5)(a)3. 3. Relief in kind by a governmental agency, including surplus food, food stamps and payments directly to a supplier of goods or services, such as medical care, food, clothing and residential energy.
Tax 14.03(5)(a)4. 4. The nontaxable portions of lump sum insurance proceeds received:
Tax 14.03(5)(a)4.a. a. For a recipient's disability or loss of limb.
Tax 14.03(5)(a)4.b. b. By a beneficiary of a decedent's life insurance policy.
Tax 14.03(5)(a)4.c. c. From the surrender of any portion of an insurance policy that does not constitute a personal endowment insurance policy or an annuity contract purchased by the recipient.
Tax 14.03(5)(a)5. 5. Wisconsin homestead credit amounts received.
Tax 14.03(5)(a)6. 6. Social security or SSI payments received on behalf of a claimant's children or the children of the claimant's household.
Tax 14.03(5)(a)7. 7. Pension, annuity or other retirement plan payments rolled over from one retirement plan to another.
Tax 14.03(5)(a)8. 8. Tax-free exchanges of insurance contracts under s. 1035 of the internal revenue code.
Tax 14.03(5)(a)9. 9. Crime victim compensation payments under ch. 949, Stats.
Tax 14.03(5)(a)10. 10. Payments under the Wisconsin petroleum cleanup fund act.
Tax 14.03(5)(a)11. 11. "Foster grandparents program" payments under the federal domestic volunteer service act of 1973.
Tax 14.03(5)(a)12. 12. Community spouse income allowance payments under the Wisconsin spousal impoverishment program, except the portion of the payments includable under Wisconsin marital property law.
Tax 14.03 Note Note: The determination of household income under Wisconsin marital property law is described in s. Tax 14.06 (3) (c) 2.
Tax 14.03(5)(b) (b) Amounts added to Wisconsin adjusted gross income under s. 71.52 (6), Stats., on a previous year's homestead credit claim and subsequently repaid may be subtracted from income for the year during which they are repaid.
Tax 14.03(5)(c) (c) Scholarship and fellowship gifts or income included in Wisconsin adjusted gross income, which were included in income under s. 71.52 (6), Stats., on a previous year's homestead credit claim may be subtracted from income for the current year.
Tax 14.03(6) (6)Marital property agreements. Under s. 71.52 (6), Stats., a marital property agreement or unilateral statement under ch. 766, Stats., has no effect in computing income for a person whose homestead is not the same as the homestead of that person's spouse.
Tax 14.03(7) (7)Income while temporarily absent from homestead. Income received while temporarily absent from a homestead shall be included in income.
Tax 14.03 Note Example: The net income from rental of a homestead during a planned temporary absence or earnings from seasonal employment away from the homestead is includable in income.
Tax 14.03 Note Note: Household income of a claimant who becomes married or divorced during a claim year or occupies a separate dwelling from his or her spouse for any part of a claim year is described in s. Tax 14.06.
Tax 14.03 Note Note: Section Tax 14.03 interprets s. 71.52 (5) and (6), Stats.
Tax 14.03 Note Note: Section 71.01 (6), Stats., was revised by 1997 Wis. Act 37, to include provisions of P.L. 105-34, relating to the exclusion of a gain from the sale of a personal residence, effective for sales after May 6, 1997, the same time as for federal purposes. Under the statutes in effect immediately prior to the enactment of 1997 Wis. Act 37, certain gains from the sale of a personal residence could be deferred under s. 1034 of the internal revenue code, and those gains were excludable from income under s. 71.52 (6), Stats. In addition, a gain on the sale of a personal residence excluded under s. 121 of the internal revenue code, which was the once-in-a-lifetime exclusion for a qualifying sale by a person age 55 or older, was includable in income under s. 71.52 (6), Stats.
Tax 14.03 Note Note: Section 71.52 (6), Stats., was amended by 1997 Wis. Act 27, effective for 1998 homestead credit claims filed in calendar year 1999 and thereafter. Under the statutes in effect immediately prior to the enactment of 1997 Wis. Act 27, scholarship and fellowship amounts described in sub. (5) (c) could not be excluded from income.
Tax 14.03 History History: Cr. Register, February, 1990, No. 410, eff. 3-1-90; renum. (3) to (6) to be (4) to (7) and am. (5) (a) 1., cr. (3), Register, August, 1990, No. 416, eff. 9-1-90; am. (3) (a), (4) (b) 10., 15., 23. d. and f. Register, June, 1993, No. 450, eff. 7-1-93; cr. (2) (intro.) and (4) (b) 5. e., r. and recr. (4) (b) 3. and (5), am. (3) (a), (b) and (c) 2. and (4) (b) (intro.), 2., 5. (intro.) and a., 7., 11., 12., 14., 15. and 20., renum. (4) (b) 23. (intro.) and a. to i. to be (4) (c) (intro.) and 1. to 9. and am. (4) (c) (intro.) and 6., Register, July, 2000, No. 535, eff. 8-1-00; corrections in (4) (b) 3. f. made under s. 13.92 (4) (b) 6. and 7., Stats., Register March 2013 No. 687.
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