LRB-3418/1
MES:cjs:rs
2009 - 2010 LEGISLATURE
November 12, 2009 - Introduced by Representatives Knodl, Zipperer, Bies,
Brooks, Gunderson, Huebsch, Kleefisch, LeMahieu, Lothian, Mason,
Meyer, Mursau, Nerison, Nygren, Petersen, Petrowski, Pridemore, Ripp,
Strachota, Suder, Townsend, Vos, Vukmir
and M. Williams, cosponsored by
Senators Darling, Grothman, Hopper, Kanavas and Leibham. Referred to
Joint Survey Committee on Tax Exemptions.
AB576,1,3 1An Act to amend 71.05 (22) (f) 4. a., 71.05 (23) (b) 2. and 71.05 (23) (c); and to
2create
71.05 (23) (be) of the statutes; relating to: increasing the amount of the
3individual income tax personal exemption for certain dependents.
Analysis by the Legislative Reference Bureau
Under current law, an individual income tax personal exemption exists in the
amount of $700 for each taxpayer who is required to file an income tax return and
$700 for the taxpayer's spouse, except if the spouse is filing separately or as a head
of household. A taxpayer may also claim a $700 exemption for each dependent for
whom he or she is entitled to claim an exemption under the Internal Revenue Code.
In general, additional exemptions of $250 may be claimed by a taxpayer for the
taxpayer and for the taxpayer's spouse, if the taxpayer or spouse has reached the age
of 65 before the close of the taxable year to which the tax return relates.
For taxable years beginning after December 31, 2009, this bill increases the
exemption amount for dependents from $700 to $1,200.
Because this bill relates to an exemption from state or local taxes, it may be
referred to the Joint Survey Committee on Tax Exemptions for a report to be printed
as an appendix to the bill.
For further information see the state fiscal estimate, which will be printed as
an appendix to this bill.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
AB576, s. 1
1Section 1. 71.05 (22) (f) 4. a. of the statutes is amended to read:
AB576,2,62 71.05 (22) (f) 4. a. For taxable years beginning after December 31, 1997, in the
3case of a taxpayer with respect to whom an exemption under sub. (23) (b) 2. or (be)
4is allowable to another person, the Wisconsin standard deduction shall be the lesser
5of the amount under subd. 4. b. or one of the amounts calculated under subd. 4. c.,
6whichever amount under subd. 4. c. is greater.
AB576, s. 2 7Section 2. 71.05 (23) (b) 2. of the statutes is amended to read:
AB576,2,118 71.05 (23) (b) 2. An exemption of $700 for each individual for whom the
9taxpayer is entitled to an exemption for the taxable year under section 151 (c) of the
10Internal Revenue Code, except that this subdivision does not apply to any taxable
11year that begins after December 31, 2009
.
AB576, s. 3 12Section 3. 71.05 (23) (be) of the statutes is created to read:
AB576,2,1513 71.05 (23) (be) For taxable years that begin after December 31, 2009, an
14exemption of $1,200 for each individual for whom the taxpayer is entitled to an
15exemption for the taxable year under section 151 (c) of the Internal Revenue Code.
AB576, s. 4 16Section 4. 71.05 (23) (c) of the statutes is amended to read:
AB576,3,417 71.05 (23) (c) With respect to persons who change their domicile into or from
18this state during the taxable year and nonresident persons, personal exemptions
19under pars. (a) and, (b), and (be) shall be limited to the fraction of the amount so
20determined that Wisconsin adjusted gross income is of federal adjusted gross income.
21In this paragraph, for married persons filing separately "adjusted gross income"
22means the separate adjusted gross income of each spouse and for married persons
23filing jointly "adjusted gross income" means the total adjusted gross income of both
24spouses. If a person and that person's spouse are not both domiciled in this state
25during the entire taxable year, their personal exemptions on a joint return are

1determined by multiplying the personal exemption that would be available to each
2of them if they were both domiciled in this state during the entire taxable year by a
3fraction the numerator of which is their joint Wisconsin adjusted gross income and
4the denominator of which is their joint federal adjusted gross income.
AB576,3,55 (End)
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