Department of Revenue
Mail Stop 6-40
2135 Rimrock Road
P.O. Box 8933
Madison, WI 53708-8933
SECTION 1. Tax 3.045 is created to read:
Tax 3.045 Subtraction for basic, special, or incentive pay received from the federal government while on active duty in the U.S. armed forces.
(1) Purpose. This section clarifies the subtraction from federal adjusted gross income in sec. 71.05 (6) (b) 56., Stats., for basic, special, or incentive pay received from the federal government by an individual who is on active duty in the U.S. armed forces.
(2) Definitions. For purposes of sec. 71.05 (6) (b) 56., stats., all of the following apply:
(a) "Active duty" means full-time duty as a uniformed service member in the active service of the U.S. armed forces and includes full-time training duty, annual training duty, full-time National Guard duty, and attendance, while in the active service, at a school designated as a federal military service academy. Active duty does not include training while on inactive duty or attendance for training not required by the U.S. armed forces.
(b) "U.S. armed forces" has the meaning given in 26 USC 7701 (a) (15) and includes uniformed service members in the reserve components identified under 37 USC 101 (24). (3) Eligible pay. Basic, special, or incentive pay eligible for the subtraction includes only income received while the individual is on active duty. Amounts the individual receives while on inactive duty in a civil service position in the military, while on inactive duty training, or while on inactive duty waiting for reenlistment to inactive duty, are not eligible for the subtraction.
SECTION 2. Effective date; general. This rule shall take effect on the first day of the month following publication in the Wisconsin Administrative Register as provided in s. 227.22 (2) (intro.), Stats.
DEPARTMENT OF REVENUE
Dated: By: ___________________________
Peter W. Barca
Secretary of Revenue
E:Rules/181 – Active Duty Military Pay – SS 082-21/Chapter Tax 3 – Active Duty Military Pay Proposed Order
