Tax 2.97(2)(a)2.
2. The amount of the person's net earnings from self-employment for the taxable year within the meaning of section
1402 (a) of the Internal Revenue Code, but net earnings shall be determined with regard to the deduction allowed to the person under section
164 (f) of the Internal Revenue Code.
Tax 2.97(2)(b)
(b) "Qualifying child" means, with respect to any person for any taxable year, an individual:
Tax 2.97(2)(b)2.
2. Who, except as provided in
sub. (5) (a) 3., has the same principal place of abode as the person for more than one-half of the taxable year.
Tax 2.97(3)(a)(a) Except as provided in
pars. (b),
(c) and
(d), a person who has a qualifying child for the taxable year may claim the earned income credit.
Tax 2.97(3)(b)
(b) A person may not claim the earned income credit for the taxable year if the person is the qualifying child of another person for that taxable year.
Tax 2.97 Note
Example: You and your daughter lived with your mother during the taxable year. Both you and your mother meet all the requirements for the earned income credit for the taxable year.
Tax 2.97 Note
Your daughter is your qualifying child. Both you and your daughter are qualifying children of your mother.
Tax 2.97 Note
You cannot take the earned income credit because you are your mother's qualifying child.
Tax 2.97(3)(c)
(c) If 2 or more persons would be treated as eligible for the credit with respect to the same qualifying child for taxable years beginning in the same calendar year, only the person with the highest federal adjusted gross income for the taxable year may claim the earned income credit with respect to the qualifying child.
Tax 2.97 Note
Example: You and your 5-year-old son moved in with your mother in April. You are not a qualifying child of your mother. Your son meets the conditions to be a qualifying child for both you and your mother. Your federal adjusted gross income for the taxable year was $7,000 and your mother's was $14,000. Since your mother's federal adjusted gross income was higher, only your mother may claim the earned income credit with respect to your son.
Tax 2.97(3)(d)
(d) A person who claims the foreign earned income exclusion under section
911 of the Internal Revenue Code for the taxable year may not claim the earned income credit.
Tax 2.97(4)(a)(a) The earned income of a person shall be computed without regard to any marital property laws.
Tax 2.97(4)(b)
(b) No amount received as a pension or annuity may be taken into account in computing earned income.
Tax 2.97(4)(c)
(c) No amount to which section
871 (a) of the Internal Revenue Code applies, relating to income of nonresident alien individuals not connected with United States business, may be taken into account in computing earned income.
Tax 2.97(5)(a)1.1. An individual bears a relationship to the person if the individual is any of the following:
Tax 2.97(5)(a)2.
2. Subdivision 1. does not apply to any individual who is married as of the end of the person's taxable year unless the person is entitled to a deduction under section
151 of the Internal Revenue Code for that taxable year with respect to the individual or would be so entitled but for paragraph (2) or (4) of section
152 (e) of the Internal Revenue Code.
Tax 2.97(5)(a)3.b.
b. Has the same principal place of abode as the person for the person's entire taxable year.
Tax 2.97(5)(a)4.
4. A child who is legally adopted or who is placed with a person by an authorized placement agency for adoption by the person shall be treated as a child by blood.
Tax 2.97(5)(b)
(b) Age requirements. An individual meets the requirements of this paragraph if the individual meets any of the following conditions:
Tax 2.97(5)(b)1.
1. Has not attained the age of 19 as of the end of the calendar year in which the taxable year of the person begins.
Tax 2.97(5)(b)2.
2. Is a student as defined in section
151 (c) (4) of the Internal Revenue Code who has not attained the age of 24 as of the end of the calendar year.
Tax 2.97(5)(b)3.
3. Is permanently and totally disabled as defined in section
22 (e) (3) of the Internal Revenue Code at any time during the taxable year.
Tax 2.97(5)(c)
(c) Identification requirements. The requirements of this paragraph are met if, as part of the tax return on which the credit is claimed:
Tax 2.97(5)(c)1.
1. The person provides the name and age of each qualifying child.
Tax 2.97(5)(c)2.
2. In the case of a qualifying child who has attained the age of one year before the end of the person's taxable year, the person provides the taxpayer identification number of the qualifying child.
Tax 2.97(5)(d)
(d) Abode must be in the United States. The requirements of
sub. (2) (b) 2. and
par. (a) 3. b. shall be met only if the principal place of abode is in the United States.
Tax 2.97 Note
Note: The provisions of this section are effective for taxable years beginning on or after January 1, 1994, as a result of the enactment of
1993 Wis. Act 16, which created s.
71.07 (9e) (ad),
(ah),
(ap) and
(at), Stats. Prior to the enactment of
1993 Wis. Act 16, the Wisconsin earned income credit was based on a percentage of the federal basic earned income credit.
Tax 2.97 History
History: Cr.
Register, January, 1995, No. 469, eff. 2-1-95.
Tax 2.98(1)(a)
(a) Hurricanes, fires, storms, floods, and other similar casualties may cause persons to suffer losses from damage to property used in a trade or business or for income-producing purposes for which insurance coverage is nominal or nonexistent. Losses sustained from casualties of this kind may be deductible on a federal and a Wisconsin income tax return.
Tax 2.98(1)(b)
(b) If a taxpayer sustains a casualty loss from a disaster in an area subsequently determined by the president of the United States to warrant federal assistance, section
165 (h) of the Internal Revenue Code gives taxpayers the election to deduct the loss on the return for the current tax year or on the return for the immediately preceding tax year.
Tax 2.98(2)(a)(a) The Wisconsin income tax treatment is determined under the federal Internal Revenue Code in effect under s.
71.22 (4), Stats., for corporations and s.
71.01 (6), Stats., for individuals.
Tax 2.98(2)(b)
(b) If a corporation, designated agent of a combined group, or an individual desires to make the election after having filed a Wisconsin income tax return for the preceding taxable year, the casualty loss may be claimed by filing an amended Wisconsin return for that year.
Tax 2.98 Note
Note: For taxable years prior to 1987, the Wisconsin corporation tax law was contained in ch.
71, Stats., and was not referenced to the federal law in regard to disaster losses. Therefore, the election provisions in the Internal Revenue Code were not available to corporations for Wisconsin franchise and income tax purposes for those years. The amendment allowing disaster losses for corporations was enacted by
1987 Wis. Act 27.
Tax 2.98 Note
Note: Section 71.02 (2) (d), 1983 Stats., which defines "Wisconsin taxable income," was renumbered 71.02 (2) (me), 1985 Stats., and amended by
1985 Wis. Act 29, effective with 1986 individual income tax returns filed in taxable year 1987. This amendment is reflected in s. Tax 2.98. Section 71.02 (2) (me), 1985 Stats., was again renumbered, s. 71.01 (16), Stats., by
1987 Wis. Act 312. For 1985 and prior year income tax returns filed in 1986 and prior taxable years, disaster area losses from damage to property used for personal purposes were also allowed, as an itemized deduction, using the provisions in sub. (1) (b) and the individual treatment in sub. (2) (b).
Tax 2.98 Note
Note: As an example of Note 2) on March 23, 1976, the president of the United States declared that 22 Wisconsin counties warranted assistance by the federal government under the Disaster Relief Act of 1974. This resulted from the damage during the severe rain and ice storm which occurred March 1 through 12, 1976 in the following 22 counties:
-
See PDF for table 
Tax 2.98 Note
An individual who sustained a casualty loss from this disaster in any of these 22 counties, regardless of where that individual resided, could have elected to deduct the loss on the individual's 1975 Wisconsin income tax return. The election had to have been made on or before April 15, 1977 for calendar year taxpayers, assuming the due date for filing the 1975 Wisconsin return was not extended beyond April 15, 1977. If the election was not made, the loss was deductible on the taxpayer's 1976 return.
Tax 2.98 Note
Note: Tax 2.98 explains some federal provisions relating to disaster area losses and how the Wisconsin law for individuals conforms to the federal law, however, it does not explain all the details regarding casualty losses. Internal Revenue Service Publication 547, entitled Casualties, Disasters, and Thefts may be helpful in understanding such details as how to deduct a casualty loss, what to do if the loss exceeds income, how to adjust the basis of property damaged or replaced, how to report the amount received from insurance or other sources, and related casualty loss problems.
Tax 2.98 History
History: Cr.
Register, April, 1978, No. 268, eff. 5-1-78; r. (2), renum. (3) to be (2) and am. (2) (a) 1. and (b),
Register, September, 1983, No. 333, eff. 10-1-83; am. (1) (a), r. (2) (b), renum. (2) (a) 1. and 2. to be (2) (a) and (b) and am.,
Register, February, 1990, No. 410, eff. 3-1-90;
CR 10-095: am. (2) (b)
Register November 2010 No. 659, eff. 12-1-10.
Tax 2.985
Tax 2.985
Electronic medical records credit. Tax 2.985(1)(1)
Purpose and scope. The purpose and scope of this section is to establish procedures for all of the following:
Tax 2.985(1)(c)
(c) Allocating the electronic medical records tax credit to health care providers certified under this section.
Tax 2.985(2)(b)
(b) "Electronic medical record" means an electronic record of health-related information that includes patient demographic and clinical health information and has the capacity to provide clinical decision support; to support physician order entry; to capture and query information relevant to health care quality; and to exchange and integrate electronic health information with and from other sources.
Tax 2.985(3)(a)(a) The department shall provide a form to apply for certification and allocation of the electronic medical records credit under ss.
71.07 (5i),
71.28 (5i), and
71.47 (5i), Stats. The form shall require an applicant to provide all of the following information:
Tax 2.985(3)(a)1.
1. The type of health care provider license or certification held and the license or certification number.
Tax 2.985(3)(a)2.
2. The amounts paid in the taxable year for information technology hardware and software used to maintain electronic medical records.
Tax 2.985(3)(a)3.
3. A description of the information technology hardware and software, including the federal certification number issued pursuant to
45 CFR 170.
Tax 2.985(3)(a)4.
4. An explanation of how the information technology hardware and software is used to maintain electronic medical records.
Tax 2.985(3)(a)5.
5. Any other information, as determined by the department, necessary to certify a health care provider or allocate the credit under
sub. (4).
Tax 2.985(3)(b)
(b) Each application shall be completed and submitted to the department, no sooner than upon completion of the calendar year in which the amount under
par. (a) 2. was paid, and no later than January 31 of the subsequent calendar year.
Tax 2.985 Note
Note: An application for the electronic medical records credit may be filed beginning January 1, 2013. The application form will be available on the department's web site at
www.revenue.wi.gov by December 2012.
Tax 2.985(4)
(4) Certification of applicants and allocation of credits. Tax 2.985(4)(b)
(b) In conjunction with issuing a certification for an applicant, the department shall determine the amount of credit that the applicant may claim or distribute to its partners, members, or shareholders as follows:
Tax 2.985(4)(b)1.
1. If 50 percent of the total of the amounts under
sub. (3) (a) 2. for all certified applicants does not exceed the $10,000,000 maximum total established in s.
73.15 (2), Stats., for allocations in each calendar year, the credit shall be equal to 50 percent of the amount the applicant paid during the calendar year for health information technology software certified pursuant to
45 CFR 170 and hardware used to run and access certified software.
Tax 2.985(4)(b)2.
2. If 50 percent of the total of the amounts under
sub. (3) (a) 2. for all certified applicants exceeds the $10,000,000 maximum total established in s.
73.15 (2), Stats., for allocations in each calendar year, the $10,000,000 of credits shall be allocated to each certified applicant in proportion to the amount paid during the calendar year for health information technology software certified pursuant to
45 CFR 170 and hardware used to run and access certified software.
Tax 2.985 Note
Example: Health Care Providers A, B, and C are certified to claim the electronic medical records credit for the following amounts paid in 2012 for certified software and related hardware:
A $8,000,000
B $12,000,000
C $4,000,000
Tax 2.985 Note
The $10,000,000 of credits available for 2012 are allocated to A, B, and C, based on their proportionate share of the $24,000,000. A is allocated a credit of $3,333,333 (= [8,000,000
-
See PDF for diagram 24,000,000] x $10,000,000), B is allocated a credit of $5,000,000 (= [12,000,000
-
See PDF for diagram 24,000,000] x $10,000,000), and C is allocated a credit of $1,666,667 (= [4,000,000
-
See PDF for diagram 24,000,000] x $10,000,000).
Tax 2.985(4)(c)
(c) Following completion of the certifications and allocations under
pars. (a) and
(b), the department shall notify each applicant of the outcome of its application, including the amount of credit allocated to the applicant.
Tax 2.985 History
History: CR 12-102: cr.
Register July 2012 No. 670, eff. 8-1-12.
Tax 2.99
Tax 2.99
Dairy and livestock farm investment credit. Tax 2.99 Note
Note: 2005 Wis. Act 25 renamed the "dairy investment credit" the "dairy and livestock farm investment credit," effective for taxable years beginning on or after January 1, 2006. The term "dairy and livestock farm investment credit" as used in this section refers to the "dairy investment credit" for taxable years prior to January 1, 2006.
