LRB-2163/1
KP:emw
2023 - 2024 LEGISLATURE
April 14, 2023 - Introduced by Senators Jacque and Spreitzer, cosponsored by
Representatives Tittl, Conley, Allen, C. Anderson, Baldeh, Brandtjen,
Considine, Donovan, Joers, Mursau, Ortiz-Velez, Palmeri, Stubbs, Subeck,
Wichgers and Behnke. Referred to Committee on Universities and Revenue.
SB243,1,3
1An Act to amend 71.07 (9e) (b); and
to create 71.07 (9e) (ar) of the statutes;
2relating to: allowing certain married persons to claim the earned income tax
3credit when filing a separate return.
Analysis by the Legislative Reference Bureau
Under current law, the Wisconsin earned income tax credit is equal to a
percentage of the federal earned income tax credit, and subject to certain exceptions,
a married claimant must file a joint return to claim both the Wisconsin EITC and the
federal EITC. This bill allows a married claimant to file a separate return to claim
the Wisconsin EITC if the claimant lives apart from the claimant's spouse when filing
the return and is unable to file a joint return because of domestic abuse. The bill
defines “domestic abuse” as 1) intentional infliction of physical pain, injury, or
illness; 2) intentional impairment of physical condition; 3) first-, second-, or
third-degree sexual assault; or 4) a physical act that may cause reasonable fear of
imminent engagement in any of the conduct listed above. Under the bill, the amount
of the Wisconsin EITC is equal to the amount that the claimant would be eligible to
claim if the claimant were considered unmarried.
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:
SB243,1
1Section
1. 71.07 (9e) (ar) of the statutes is created to read:
SB243,2,82
71.07
(9e) (ar) For taxable years beginning after December 31, 2022, a married
3person who lives apart from the person's spouse when filing a separate return and
4is unable to file a joint return because of domestic abuse, as defined in s. 968.075 (1)
5(a), may credit against the tax imposed under s. 71.02 an amount equal to one of the
6following percentages of the federal basic earned income credit for which the person
7would be eligible for the taxable year under section
32 of the Internal Revenue Code
8if the person were considered unmarried:
SB243,2,109
1. If the person has one qualifying child who has the same principal place of
10abode as the person, 4 percent.
SB243,2,1211
2. If the person has 2 qualifying children who have the same principal place of
12abode as the person, 11 percent.
SB243,2,1413
3. If the person has 3 or more qualifying children who have the same principal
14place of abode as the person, 34 percent.
SB243,2
15Section
2. 71.07 (9e) (b) of the statutes is amended to read:
SB243,2,1916
71.07
(9e) (b) No credit may be allowed under
this subsection par. (aj) to
17married persons, except married persons living apart who are treated as single
18under section
7703 (b) of the internal revenue code, if the husband and wife report
19their income on separate income tax returns for the taxable year.
