AB172: Bill Text

AB172,7,16 1. If the claimant files as a single individual or a head of household and the claimant's income is less than $75,000, $200

AB172,7,19 2. If the claimant files as a single individual or a head of household and the claimant's income is at least $75,000, but less than $112,500, an amount that is calculated as follows:

AB172,7,21 a. Calculate the value of a fraction, the denominator of which is $37,500 and the numerator of which is the difference between the claimant's income and $75,000.

AB172,7,22 b. Subtract from 1.0 the amount that is calculated under subd. 2. a.

AB172,7,23 c. Multiply $200 by the amount that is calculated under subd. 2. b.

AB172,7,25 3. If the claimant is married and files a joint return and the claimant's household income is less than $100,000, $200.

AB172,8,3 4. If the claimant is married and files a joint return and the claimant's household income is at least $100,000 but less than $150,000, an amount that is calculated as follows:

AB172,8,6 a. Calculate the value of a fraction, the denominator of which is $50,000 and the numerator of which is the difference between the claimant's household income and $100,000.

AB172,8,7 b. Subtract from 1.0 the amount that is calculated under subd. 4. a.

AB172,8,8 c. Multiply $200 by the amount that is calculated under subd. 4. b.

AB172,8,10 5. If the claimant is married and files a separate return and the claimant's household income less than $50,000, $100.

AB172,8,13 6. If the claimant is married and files a separate return and the claimant's household income at least $50,000, but less than $75,000, an amount that is calculated as follows:

AB172,8,16 a. Calculate the value of a fraction, the denominator of which is $25,000 and the numerator of which is the difference between the claimant's household income and $50,000.

AB172,8,17 b. Subtract from 1.0 the amount that is calculated under subd. 6. a.

AB172,8,18 c. Multiply $100 by the amount that is calculated under subd. 6. b.

AB172,8,20 (c) Limitations. 1. An individual may not claim the credit under this subsection if any of the following applies:

AB172,8,22 a. The individual files as a single individual or a head of household and the individual's income is at least $112,500.

AB172,8,24 b. The individual is married and files a joint return and the individual's household income is at least $150,000.

AB172,9,2 c. The individual is married and files a separate return and the individual's income is at least $75,000.

AB172,9,4 2. Part-year residents and nonresidents of this state are not eligible for the credit under this subsection.

AB172,9,6 3. No credit may be allowed under this subsection unless it is claimed within the time period under s. 71.75 (2).

AB172,9,10 4. If a married couple files separately, each spouse may claim the credit calculated under par. (b) 5. or 6., except a married person living apart from the other spouse and treated as single under section 7703 (b) of the Internal Revenue Code may claim the credit under par. (b) 1. or 2.

AB172,9,13 5. No credit may be allowed under this subsection for a taxable year covering a period of less than 12 months, except for a taxable year closed by reason of the death of the taxpayer.

AB172,9,15 (d) Administration. Subsection (9e) (d), to the extent that it applies to the credit under that subsection, applies to the credit under this subsection

AB172,13 Section 13. 71.10 (4) (cs) of the statutes is created to read:

AB172,9,17 71.10 (4) (cs) Low- and moderate-income tax credit under s. 71.07 (6i).

AB172,14 Section 14. 71.125 (1) of the statutes is amended to read:

AB172,9,22 71.125 (1) Except as provided in sub. (2), the tax imposed by this chapter on individuals and the rates under s. 71.06 (1), (1m), (1n), (1p), (1q), (1r), and (2) shall apply to the Wisconsin taxable income of estates or trusts, except nuclear decommissioning trust or reserve funds, and that tax shall be paid by the fiduciary.

AB172,15 Section 15. 71.125 (2) of the statutes is amended to read:

AB172,9,25 71.125 (2) Each electing small business trust, as defined in section 1361 (e) (1) of the Internal Revenue Code, is subject to tax at the highest rate under s. 71.06 (1), (1m), (1n), (1p), or (1q), or (1r), whichever taxable year is applicable, on its income as computed under section 641 of the Internal Revenue Code, as modified by s. 71.05 (6) to (12), (19) and (20).

AB172,16 Section 16. 71.17 (6) of the statutes is amended to read:

AB172,10,8 71.17 (6) Funeral trusts. If a qualified funeral trust makes the election under section 685 of the Internal Revenue Code for federal income tax purposes, that election applies for purposes of this chapter and each trust shall compute its own tax and shall apply the rates under s. 71.06 (1), (1m), (1n), (1p), or (1q), or (1r).

AB172,17 Section 17. 71.64 (9) (b) (intro.) of the statutes is amended to read:

AB172,10,13 71.64 (9) (b) (intro.) The department shall from time to time adjust the withholding tables to reflect any changes in income tax rates, any applicable surtax or any changes in dollar amounts in s. 71.06 (1), (1m), (1n), (1p), (1q), (1r), and (2) resulting from statutory changes, except as follows:

AB172,18 Section 18. 71.67 (5) (a) of the statutes is amended to read:

AB172,10,20 71.67 (5) (a) Wager winnings. A person holding a license to sponsor and manage races under s. 562.05 (1) (b) or (c) shall withhold from the amount of any payment of pari-mutuel winnings under s. 562.065 (3) (a) or (3m) (a) an amount determined by multiplying the amount of the payment by the highest rate applicable to individuals under s. 71.06 (1) (a) to (c), (1m), (1n), (1p), or (1q), or (1r) if the amount of the payment is more than $1,000.

AB172,19 Section 19. 71.67 (5m) of the statutes is amended to read:

AB172,11,3 71.67 (5m) Withholding from payments to purchase assignment of lottery prize. A person that purchases an assignment of a lottery prize shall withhold from the amount of any payment made to purchase the assignment the amount that is determined by multiplying the amount of the payment by the highest rate applicable to individuals under s. 71.06 (1) (a) to (c), (1m), (1n), (1p), or (1q), or (1r). Subsection (5) (b), (c) and (d), as it applies to the amounts withheld under sub. (5) (a), applies to the amount withheld under this subsection.

AB172,11,4 (End)