LRBs0109/1
MES:lmk:ch
2005 - 2006 LEGISLATURE
ASSEMBLY SUBSTITUTE AMENDMENT 1,
TO 2005 ASSEMBLY BILL 402
May 24, 2005 - Offered by Representative Kerkman.
AB402-ASA1,1,4 1An Act to renumber and amend 71.05 (6) (b) 21.; and to create 71.05 (6) (b)
221. b., 71.05 (6) (b) 21. c., 71.05 (6) (b) 21. d., 71.05 (6) (b) 21. e. and 71.05 (6) (b)
321. f. of the statutes; relating to: increasing the amount of the individual
4income tax subtract modification for social security benefits.
Analysis by the Legislative Reference Bureau
In general, under current law, 50 percent of certain social security benefits are
taxed by this state once the recipient's income reaches $34,000 for a single individual
or $44,000 for a married couple filing jointly, while the federal government taxes 85
percent of these same benefits.
Over the course of five years, beginning with 2006, this substitute amendment
increases the exemption amount such that by 2010, the social security benefits which
are included in the calculation of a taxpayer's federal adjusted gross income will be
completely exempt from taxation. In 2006 the exemption amount is approximately
60 percent; in 2007, 70 percent; in 2008, 80 percent; in 2009, 90 percent; and in 2010
and thereafter, 100 percent.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
AB402-ASA1, s. 1
1Section 1. 71.05 (6) (b) 21. of the statutes is renumbered 71.05 (6) (b) 21. a. and
2amended to read:
AB402-ASA1,2,73 71.05 (6) (b) 21. a. The For taxable years beginning before January 1, 2006, the
4difference between the amount of social security benefits included in federal
5adjusted gross income for the current year and the amount calculated under section
686 of the internal revenue code Internal Revenue Code as that section existed on
7December 31, 1992.
AB402-ASA1, s. 2 8Section 2. 71.05 (6) (b) 21. b. of the statutes is created to read:
AB402-ASA1,2,139 71.05 (6) (b) 21. b. For taxable years beginning after December 31, 2005, and
10before January 1, 2007, the difference between the amount of social security benefits
11included in federal adjusted gross income for the current year and 80 percent of the
12amount calculated under section 86 of the Internal Revenue Code as that section
13existed on December 31, 1992.
AB402-ASA1, s. 3 14Section 3. 71.05 (6) (b) 21. c. of the statutes is created to read:
AB402-ASA1,2,1915 71.05 (6) (b) 21. c. For taxable years beginning after December 31, 2006, and
16before January 1, 2008, the difference between the amount of social security benefits
17included in federal adjusted gross income for the current year and 60 percent of the
18amount calculated under section 86 of the Internal Revenue Code as that section
19existed on December 31, 1992.
AB402-ASA1, s. 4 20Section 4. 71.05 (6) (b) 21. d. of the statutes is created to read:
AB402-ASA1,2,2521 71.05 (6) (b) 21. d. For taxable years beginning after December 31, 2007, and
22before January 1, 2009, the difference between the amount of social security benefits
23included in federal adjusted gross income for the current year and 40 percent of the
24amount calculated under section 86 of the Internal Revenue Code as that section
25existed on December 31, 1992.
AB402-ASA1, s. 5
1Section 5. 71.05 (6) (b) 21. e. of the statutes is created to read:
AB402-ASA1,3,62 71.05 (6) (b) 21. e. For taxable years beginning after December 31, 2008, and
3before January 1, 2010, the the difference between the amount of social security
4benefits included in federal adjusted gross income for the current year and 20 percent
5of the amount calculated under section 86 of the Internal Revenue Code as that
6section existed on December 31, 1992.
AB402-ASA1, s. 6 7Section 6. 71.05 (6) (b) 21. f. of the statutes is created to read:
AB402-ASA1,3,108 71.05 (6) (b) 21. f. For taxable years beginning after December 31, 2009, the
9amount of social security benefits included in federal adjusted gross income under
10section 86 of the Internal Revenue Code.
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