Tax 14.03(4)(a)
(a) “Wisconsin adjusted gross income" as defined in s.
71.01 (13), Stats., for the calendar year to which a claim for homestead credit relates.
Tax 14.03(4)(b)
(b) The following amounts to the extent not included in Wisconsin adjusted gross income:
Tax 14.03(4)(b)1.
1. Maintenance payments, not including foster care maintenance and supplemental payments excludable under s. 131 of the internal revenue code.
Tax 14.03(4)(b)2.
2. Court-ordered support payments, including support for dependents under ch.
49, Stats.
Tax 14.03(4)(b)3.
3. Cash public assistance and county relief, including the following:
Tax 14.03(4)(b)3.c.
c. Non-legally responsible relative, or “NLRR" AFDC payments or kinship care payments under s.
48.57, Stats. These are payments received as a relative other than a parent, for caring for a dependent child in the claimant's homestead.
Tax 14.03(4)(b)3.e.
e. Reimbursement from a governmental agency for amounts originally paid for by the recipient, not including cash reimbursements for home energy assistance or for services under Title XX of the federal social security act and community options program, or “COP” payments under s.
46.27, 2017 Stats.
Tax 14.03(4)(b)3.f.
f. Adoption assistance payments under Title IV-E of the federal social security act or from another state, or payments by the Wisconsin department of children and families under s.
48.975, Stats., to adoptive parents of children having special needs as described in s.
DCF 50.03 (1) (b).
Tax 14.03(4)(b)3.g.
g. Veterans administration payments for reimbursement of services purchased by the recipient.
Tax 14.03(4)(b)3.h.
h. Federal housing and urban development, or “H.U.D." payments for housing.
Tax 14.03 Note
Example: Gross amount of a pension. A claimant was entitled to a pension of $8,000 during the year but received only $5,600 after $2,400 was withheld by the payor for payment of health insurance premiums for the claimant. Of the $8,000 pension, $2,000 was a return of the claimant's contribution.
Tax 14.03 Note
The gross pension of $8,000 must be included in income.
Tax 14.03(4)(b)5.
5. Except as provided in subd.
3. e., all payments received for the benefit of a claimant or a member of the claimant's household under the federal social security act, including:
Tax 14.03(4)(b)5.a.
a. All federal social security retirement, disability or survivorship benefits.
Tax 14.03(4)(b)5.c.
c. Medicare premiums deducted from social security benefits received by all members of a household.
Tax 14.03(4)(b)5.d.
d. Supplemental security income, or “SSI" benefits received by persons over 65 years of age, or blind or disabled.
Tax 14.03(4)(b)6.
6. Compensation and other cash benefits received from the United States for past or present service in the armed forces.
Tax 14.03(4)(b)7.
7. Payments made to surviving widows, widowers or parents of veterans by the United States, but not including insurance proceeds received by beneficiaries of National Service Life Insurance.
Tax 14.03(4)(b)8.
8. Proceeds from a personal endowment insurance policy or annuity contract purchased by the recipient.
Tax 14.03(4)(b)10.
10. Nontaxable interest received from the federal government or any of its instrumentalities, or from state or municipal bonds.
Tax 14.03(4)(b)11.
11. Scholarship and fellowship gifts or income and other educational grants, not including student loans.
Tax 14.03(4)(b)12.
12. Unemployment insurance, including railroad unemployment compensation.
Tax 14.03(4)(b)14.
14. Capital gains not included in Wisconsin adjusted gross income, but not including a nonrecognized gain from an involuntary conversion under s. 1033 of the internal revenue code.
Tax 14.03(4)(b)15.
15. A gain on the sale of a personal residence excluded under s. 121 of the internal revenue code. A gain on the sale of a personal residence which would be reportable under the installment sale method if taxable may be reported either in full in the year of sale or each year as payments are received.
Tax 14.03(4)(b)17.
17. Income of a nonresident or part-year resident married to a full-year resident of Wisconsin.
Tax 14.03(4)(b)21.
21. Income from sources outside of Wisconsin which is nontaxable under ch.
71, Stats.
Tax 14.03(4)(c)
(c) The following items deducted in determining Wisconsin adjusted gross income, including items deducted in arriving at partnership, limited liability company and tax-option “S" corporation income or losses reported as a part of Wisconsin adjusted gross income:
Tax 14.03(4)(c)3.
3. Depreciation, including that portion of the standard mileage rate which is determined under the internal revenue code to be depreciation.
Tax 14.03(4)(c)4.
4. Expenses deducted under s. 179 of the internal revenue code, regarding the election to expense certain depreciable business assets.
Tax 14.03(4)(c)6.
6. Contributions to individual retirement accounts under s. 219 of the internal revenue code, including contributions to individual retirement arrangements, or “IRAs," savings incentive match plans for employees, or “SIMPLEs" and simplified employee pension plans, or “SEPs."
Tax 14.03(5)(a)2.
2. Gifts from natural persons, including voluntary support payments.
Tax 14.03(5)(a)3.
3. Relief in kind by a governmental agency, including surplus food, food stamps and payments directly to a supplier of goods or services, such as medical care, food, clothing and residential energy.
Tax 14.03(5)(a)4.
4. The nontaxable portions of lump sum insurance proceeds received:
Tax 14.03(5)(a)4.c.
c. From the surrender of any portion of an insurance policy that does not constitute a personal endowment insurance policy or an annuity contract purchased by the recipient.
Tax 14.03(5)(a)6.
6. Social security or SSI payments received on behalf of a claimant's children or the children of the claimant's household.
Tax 14.03(5)(a)7.
7. The nontaxable portions of pension, annuity, or other retirement plan payments rolled over from one retirement plan to another.
Tax 14.03(5)(a)8.
8. Tax-free exchanges of insurance contracts under s. 1035 of the internal revenue code.
Tax 14.03(5)(a)11.
11. “Foster grandparents program" payments under the federal domestic volunteer service act of 1973.
Tax 14.03(5)(a)12.
12. Community spouse income allowance payments under the Wisconsin spousal impoverishment program, except the portion of the payments includable under Wisconsin marital property law.
Tax 14.03 Note
Note: The determination of household income under Wisconsin marital property law is described in s.
Tax 14.06 (3) (c) 2. Tax 14.03(5)(b)
(b) Amounts added to Wisconsin adjusted gross income under s.
71.52 (6), Stats., on a previous year's homestead credit claim and subsequently repaid may be subtracted from income for the year during which they are repaid.
Tax 14.03(5)(c)
(c) Scholarship and fellowship gifts or income included in Wisconsin adjusted gross income, which were included in income under s.
71.52 (6), Stats., on a previous year's homestead credit claim may be subtracted from income for the current year.
Tax 14.03(6)
(6)
Marital property agreements. Under s.
71.52 (6), Stats., a marital property agreement or unilateral statement under ch.
766, Stats., has no effect in computing income for a person whose homestead is not the same as the homestead of that person's spouse.
Tax 14.03(7)
(7)
Income while temporarily absent from homestead. Income received while temporarily absent from a homestead shall be included in income.
Tax 14.03 Note
Example: The net income from rental of a homestead during a planned temporary absence or earnings from seasonal employment away from the homestead is includable in income.
Tax 14.03 Note
Note: Household income of a claimant who becomes married or divorced during a claim year or occupies a separate dwelling from his or her spouse for any part of a claim year is described in s.
Tax 14.06.
Tax 14.03 Note
Note: Section
71.01 (6), Stats., was revised by
1997 Wis. Act 37, to include provisions of P.L. 105-34, relating to the exclusion of a gain from the sale of a personal residence, effective for sales after May 6, 1997, the same time as for federal purposes. Under the statutes in effect immediately prior to the enactment of
1997 Wis. Act 37, certain gains from the sale of a personal residence could be deferred under s. 1034 of the internal revenue code, and those gains were excludable from income under s.
71.52 (6), Stats. In addition, a gain on the sale of a personal residence excluded under s. 121 of the internal revenue code, which was the once-in-a-lifetime exclusion for a qualifying sale by a person age 55 or older, was includable in income under s.
71.52 (6), Stats.
Tax 14.03 Note
Note: Section
71.52 (6), Stats., was amended by
1997 Wis. Act 27, effective for 1998 homestead credit claims filed in calendar year 1999 and thereafter. Under the statutes in effect immediately prior to the enactment of
1997 Wis. Act 27, scholarship and fellowship amounts described in sub. (5) (c) could not be excluded from income.
Tax 14.03 History
History: Cr.
Register, February, 1990, No. 410, eff. 3-1-90; renum. (3) to (6) to be (4) to (7) and am. (5) (a) 1., cr. (3),
Register, August, 1990, No. 416, eff. 9-1-90; am. (3) (a), (4) (b) 10., 15., 23. d. and f.
Register, June, 1993, No. 450, eff. 7-1-93; cr. (2) (intro.) and (4) (b) 5. e., r. and recr. (4) (b) 3. and (5), am. (3) (a), (b) and (c) 2. and (4) (b) (intro.), 2., 5. (intro.) and a., 7., 11., 12., 14., 15. and 20., renum. (4) (b) 23. (intro.) and a. to i. to be (4) (c) (intro.) and 1. to 9. and am. (4) (c) (intro.) and 6.,
Register, July, 2000, No. 535, eff. 8-1-00; corrections in (4) (b) 3. f. made under s.
13.92 (4) (b) 6. and
7., Stats.,
Register March 2013 No. 687;
CR 16-046: am. (3) (a), (a) (Example), (4) (b) 23. h., (5) (a) 7.
Register January 2018 No. 745, eff. 2-1-18;
CR 19-141: r. (4) (b) 23., cr. (4) (c) 10.
Register September 2020 No. 777, eff. 10-1-20;
CR 22-044: am. (4) (b) 3. e. Register June 2023 No. 810, eff. 7-1-23. Tax 14.04(1)(1)
Purpose. This section clarifies the meaning of “property taxes accrued" as the term applies to homestead credit claims.
Tax 14.04(2)
(2)
Definition. Under s.
71.52 (7), Stats., “property taxes accrued" means real or personal property taxes or monthly parking permit fees under s.
66.0435 (3) (c), Stats., exclusive of special assessments, delinquent interest and charges for service, levied under ch.
70, Stats., on a homestead owned by a claimant or a member of the claimant's household, less the tax credit, if any, afforded in respect of the property by s.
79.10, Stats. With respect to sub.
(3) (e), “property taxes accrued" means the property taxes accrued levied on the former homestead owned by the claimant.
Tax 14.04(3)(a)
(a) Property taxes shall be levied on a homestead or former homestead to qualify as “property taxes accrued."Property taxes are levied when the tax roll is delivered to the local treasurer for collection, usually on or near December 15 of each year.
