November 10, 2017 - Introduced by Representatives Skowronski, Brostoff,
Rohrkaste, Novak, Kulp, Horlacher, Anderson, Kitchens, Subeck,
Considine, Nygren, Ripp, Tusler, Kolste, Meyers, Sinicki, Tittl, Mursau,
Berceau, Doyle, Sargent and Bowen, cosponsored by Senators Testin,
Wirch, Carpenter, Johnson, Bewley, Larson and L. Taylor. Referred to
Committee on Mental Health.
1An Act to create
71.07 (8m) and 71.10 (4) (cs) of the statutes;
2creating a nonrefundable individual income tax credit for certain expenses
3incurred by a family caregiver to assist a qualified family member.
Analysis by the Legislative Reference Bureau
This bill creates a nonrefundable individual income tax credit for qualified
expenses incurred by a family caregiver (claimant) to assist a qualified family
member. Subject to a number of limitations, a claimant may claim 50 percent of the
costs of qualified expenses the claimant paid for in the year to which the claim
relates. These expenses include amounts spent to improve the claimant's primary
residence to assist the family member, equipment to help the family member with
daily living activities, and obtaining other goods or services to help the claimant care
for the family member. To be qualified, a family member must be at least 18 years
of age, must require assistance with one or more daily living activities as certified
by a physician, and must be the claimant's spouse or related to the claimant by blood,
marriage, or adoption within the third degree of kinship.
The maximum amount of credit that may be claimed each year for a particular
family member is $1,000. If more than one claimant may file a claim related to that
family member, the amount of credit each may claim is based on the percentage of
the family member's qualified expenses for which each claimant paid during the
year. No credit may be claimed by a claimant who is single, or married and filing
separately, whose Wisconsin adjusted gross income in the year to which the claim
relates exceeds $75,000 or, if the claimant is married and files jointly, $150,000.
Generally under the bill, qualified expenses may not include general food, clothing,
transportation, or household repair costs, or amounts that are paid or reimbursed by
an insurance company or the government. Because the credit is nonrefundable, it
may be claimed only up to the amount of the claimant's tax liability.
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:
71.07 (8m) of the statutes is created to read:
71.07 (8m) Family caregiver tax credit.
In this subsection:
1. “Claimant" means an individual who files a claim under this subsection for 4
amounts paid for qualified expenses to benefit a qualified family member.
2. “Physician” has the meaning given in s. 36.60 (1) (b).
3. “Qualified expenses” means amounts paid by a claimant in the year to which 7
the claim relates for items that relate directly to the care or support of a qualified 8
family member, including the following:
a. The improvement or alteration of the claimant's primary residence to enable 10
or assist the qualified family member to be mobile, safe, or independent.
b. The purchase or lease of equipment to enable or assist the qualified family 12
member to carry out one or more activities of daily living.
c. The acquisition of goods or services, or support, to assist the claimant in 14
caring for the qualified family member, including employing a home care aide or 15
personal care attendant, adult day care, transportation, legal or financial services, 16
or assistive care technology.
4. “Qualified family member” means an individual to whom all of the following 18
a. The individual is at least 18 years of age during the taxable year to which 2
the claim relates.
b. The individual requires assistance with one or more daily living activities, 4
as certified in writing by a physician.
c. The individual is the claimant's family member, as defined in s. 46.2805 (6m).
(b) Filing claims.
For taxable years beginning after December 31, 2017, and 7
subject to the limitations provided in this subsection, a claimant may claim as a 8
credit against the tax imposed under s. 71.02, up to the amount of those taxes, 50 9
percent of the claimant's qualified expenses.
1. If the claimant is a single individual, head of household, or 11
married and filing separately, no claim may be filed under this subsection if the 12
claimant's adjusted gross income exceeds $75,000 in the taxable year to which the 13
2. If the claimant is married and filing jointly, no claim may be filed under this 15
subsection if the claimant's adjusted gross income exceeds $150,000 in the taxable 16
year to which the claim relates.
3. If the claimant is married and filing separately, only one spouse may claim 18
the credit under this subsection.
4. The maximum credit that may be claimed under this subsection each taxable 20
year with regard to a particular qualified family member, is $1,000. If more than one 21
individual may file a claim under this subsection for a particular qualified family 22
member, the maximum credit specified in this subdivision shall be apportioned 23
among all eligible claimants based on the ratio of their qualified expenses to the total 24
amount of all qualified expenses incurred on behalf of that particular qualified 25
family member, as determined by the department.
5. No credit may be allowed under this subsection unless it is claimed within 2
the period specified under s. 71.75 (2).
6. No credit may be claimed under this subsection by nonresidents or part-year 4
residents of this state.
7. Qualified expenses may not include any of the following:
a. General food, clothing, or transportation expenses.
b. Ordinary household maintenance or repair expenses that are not directly 8
related or necessary for the care of the qualified family member.
c. Any amount that is paid or reimbursed under an insurance policy, by the 10
federal government, by this state, or by a political subdivision of this state.
8. No credit may be allowed under this subsection for a taxable year covering 12
a period of less than 12 months, except for a taxable year closed by reason of the death 13
of the taxpayer.
Subsection (9e) (d), to the extent that it applies to the credit 15
under that subsection, applies to the credit under this subsection.
71.10 (4) (cs) of the statutes is created to read:
(cs) Family caregiver tax credit under s. 71.07 (8m).