JK&EKL:cdc
2019 - 2020 LEGISLATURE
February 20, 2020 - Introduced by Senator Jacque, cosponsored by
Representatives Pronschinske, Loudenbeck, Novak, Petryk, Magnafici,
Skowronski, Krug, Ballweg, Plumer, Tusler, Summerfield, Edming and
Petersen. Referred to Committee on Agriculture, Revenue and Financial
Institutions.
SB842,1,3 1An Act to amend 71.05 (6) (b) 19. c. and 71.05 (6) (b) 19. d.; and to create 71.05
2(6) (b) 19. cm. and 71.05 (6) (b) 19. dm. of the statutes; relating to: modifying
3the medical care insurance subtraction for self-employed individuals.
Analysis by the Legislative Reference Bureau
This bill modifies the income tax subtraction for amounts paid for medical care
insurance by self-employed individuals. Under current law, the subtraction may not
exceed the individual's net earnings from a trade or business that are taxable by
Wisconsin. Under the bill, the subtraction may not exceed the individual's wages,
salary, tips, unearned income, and net earnings from a trade or business that are
taxable by Wisconsin.
The bill similarly modifies the provision under current law that prorates the
subtraction for self-employed nonresidents and part-year residents based on the
percentage of the individual's net earnings from a trade or business taxable by
Wisconsin to total net earnings from a trade or business. Under the bill, the
subtraction is prorated based on the percentage of the individual's wages, salary,
tips, unearned income, and net earnings from a trade or business that are taxable
by Wisconsin to total wages, salary, tips, unearned income, and net earnings from a
trade or business.
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:
SB842,1 1Section 1 . 71.05 (6) (b) 19. c. of the statutes is amended to read:
SB842,2,72 71.05 (6) (b) 19. c. For taxable years beginning before January 1, 2020, for a
3person who is a nonresident or a part-year resident of this state, modify the amount
4calculated under subd. 19. b. by multiplying the amount by a fraction the numerator
5of which is the person's net earnings from a trade or business that are taxable by this
6state and the denominator of which is the person's total net earnings from a trade
7or business.
SB842,2 8Section 2 . 71.05 (6) (b) 19. cm. of the statutes is created to read:
SB842,2,219 71.05 (6) (b) 19. cm. For taxable years beginning after December 31, 2019, for
10a person who is a nonresident or a part-year resident of this state, modify the amount
11calculated under subd. 19. b. by multiplying the amount by a fraction the numerator
12of which is the person's wages, salary, tips, unearned income, and net earnings from
13a trade or business that are taxable by this state and the denominator of which is the
14person's total wages, salary, tips, unearned income, and net earnings from a trade
15or business. In this subd. 19. cm., for married persons filing separately “ wages,
16salary, tips, unearned income, and net earnings from a trade or business" means the
17separate wages, salary, tips, unearned income, and net earnings from a trade or
18business of each spouse, and for married persons filing jointly “wages, salary, tips,
19unearned income, and net earnings from a trade or business" means the total wages,
20salary, tips, unearned income, and net earnings from a trade or business of both
21spouses.
SB842,3
1Section 3. 71.05 (6) (b) 19. d. of the statutes is amended to read:
SB842,3,42 71.05 (6) (b) 19. d. Reduce For taxable years beginning before January 1, 2020,
3reduce
the amount calculated under subd. 19. b. or c. to the person's aggregate net
4earnings from a trade or business that are taxable by this state.
SB842,4 5Section 4 . 71.05 (6) (b) 19. dm. of the statutes is created to read:
SB842,3,96 71.05 (6) (b) 19. dm. For taxable years beginning after December 31, 2019,
7reduce the amount calculated under subd. 19.b. or cm. to the person's aggregate
8wages, salary, tips, unearned income, and net earnings from a trade or business that
9are taxable by this state.
SB842,3,1010 (End)
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