71.05(22)(f)4.a.a. For taxable years beginning after December 31, 1997, in the case of a taxpayer with respect to whom a deduction under
s. 71.07 (8) is allowable to another person, the Wisconsin standard deduction shall be the lesser of the amount under
subd. 4. b. or one of the amounts calculated under
subd. 4. c., whichever amount under
subd. 4. c. is greater.
71.05(22)(f)4.b.
b. The standard deduction that may be claimed by an individual under
par. (dm) or
(dp), based on the individual's filing status.
71.05(22)(f)4.c.
c. $500, as adjusted for inflation in the manner prescribed by sections
1 (f) (3) to (6) and
63 (c) (4) of the Internal Revenue Code or the taxpayer's earned income, as defined in section
911 (d) (2) of the Internal Revenue Code, plus $250, as adjusted for inflation in the manner prescribed by sections
1 (f) (3) to (6) and
63 (c) (4) of the Internal Revenue Code.
71.05(22)(f)4.d.
d. The department shall incorporate the changes in this subdivision in the income tax forms and instructions.
71.05(22)(g)
(g)
Nonresidents. With respect to nonresident natural persons deriving income from property located, business transacted or personal or professional services performed in this state, including natural persons changing their domicile into or from this state, the Wisconsin standard deduction and itemized deductions are based on federal adjusted gross income and are limited by such fraction of that amount as Wisconsin adjusted gross income is of federal adjusted gross income. In this paragraph, for married persons filing separately "adjusted gross income" means the separate adjusted gross income of each spouse, and for married persons filing jointly "adjusted gross income" means the total adjusted gross income of both spouses.
71.05(22)(h)
(h)
Part-year residents. If a person and that person's spouse are not both domiciled in this state during the entire taxable year, the Wisconsin standard deduction or itemized deduction on a joint return is determined by multiplying the Wisconsin standard deduction or itemized deduction, each calculated on the basis of federal adjusted gross income, by a fraction the numerator of which is their joint Wisconsin adjusted gross income and the denominator of which is their joint federal adjusted gross income. For a married person who is not domiciled in this state for the entire taxable year and who files a separate return, the Wisconsin standard deduction and itemized deduction are determined under
par. (g).
71.05(23)
(23) Personal exemptions. In computing Wisconsin taxable income, an individual taxpayer may subtract the following amounts:
71.05(23)(a)
(a) For taxable years that begin after December 31, 1999, and before January 1, 2001:
71.05(23)(a)1.
1. A personal exemption of $600 if the taxpayer is required to file a return under
s. 71.03 (2) (a) 1. or
2. and $600 for the taxpayer's spouse, except if the spouse is filing separately or as a head of household.
71.05(23)(a)2.
2. An exemption of $600 for each individual for whom the taxpayer is entitled to an exemption for the taxable year under section
151 (c) of the Internal Revenue Code.
71.05(23)(a)3.
3. An additional exemption of $200 if the taxpayer has reached the age of 65 before the close of the taxable year to which his or her tax return relates and $200 for the taxpayer's spouse if he or she has reached the age of 65 before the close of the taxable year to which his or her tax return relates, except if the spouse is filing separately or as a head of household.
71.05(23)(b)
(b) For taxable years that begin after December 31, 2000:
71.05(23)(b)1.
1. A personal exemption of $700 if the taxpayer is required to file a return under
s. 71.03 (2) (a) 1. or
2. and $700 for the taxpayer's spouse, except if the spouse is filing separately or as a head of household.
71.05(23)(b)2.
2. An exemption of $700 for each individual for whom the taxpayer is entitled to an exemption for the taxable year under section
151 (c) of the Internal Revenue Code.
71.05(23)(b)3.
3. An additional exemption of $250 if the taxpayer has reached the age of 65 before the close of the taxable year to which his or her tax return relates and $250 for the taxpayer's spouse if he or she has reached the age of 65 before the close of the taxable year to which his or her tax return relates, except if the spouse is filing separately or as a head of household.
71.05(23)(c)
(c) With respect to persons who change their domicile into or from this state during the taxable year and nonresident persons, personal exemptions under
pars. (a) and
(b) shall be limited to the fraction of the amount so determined that Wisconsin adjusted gross income is of federal adjusted gross income. In this paragraph, for married persons filing separately "adjusted gross income" means the separate adjusted gross income of each spouse and for married persons filing jointly "adjusted gross income" means the total adjusted gross income of both spouses. If a person and that person's spouse are not both domiciled in this state during the entire taxable year, their personal exemptions on a joint return are determined by multiplying the personal exemption that would be available to each of them if they were both domiciled in this state during the entire taxable year by a fraction the numerator of which is their joint Wisconsin adjusted gross income and the denominator of which is their joint federal adjusted gross income.
71.05 History
History: 1987 a. 312;
1987 a. 411 ss.
42,
43,
45,
47 to
49,
51 to
53;
1989 a. 31,
46;
1991 a. 2,
37,
39,
269;
1993 a. 16,
112,
204,
263,
437;
1995 a. 27,
56,
209,
227,
261,
371,
403,
453;
1997 a. 27,
35,
39,
237;
1999 a. 9,
32,
44,
54,
65,
167.
71.05 Annotation
Shareholder distributions derived from investments in direct obligations of the federal government are exempt under sub. (6) (b) 1. Capital Preservation v. Rev. Dept.
145 Wis. 2d 841,
429 N.W.2d 551 (Ct. App. 1988).
71.05 Annotation
Adoption Assistance Offers Tax Relief. Franklin. Wis. Law. Feb. 1998.
71.06
71.06
Rates of taxation. 71.06(1)(1)
Fiduciaries, single individuals and heads of households; 1986 to 1997. The tax to be assessed, levied and collected upon the taxable incomes of all fiduciaries, except fiduciaries of nuclear decommissioning trust or reserve funds, and single individuals for taxable years beginning on or after August 1, 1986, and before January 1, 1994, and upon the taxable incomes of all fiduciaries, except fiduciaries of nuclear decommissioning trust or reserve funds, and single individuals and heads of households for taxable years beginning after December 31, 1993, and before January 1, 1998, shall be computed at the following rates:
71.06(1)(a)
(a) On all taxable income from $0 to $7,500, 4.9%.
71.06(1)(b)
(b) On all taxable income exceeding $7,500 but not exceeding $15,000, 6.55%.
71.06(1)(c)
(c) On all taxable income exceeding $15,000, 6.93%.
71.06(1m)
(1m) Fiduciaries, single individuals and heads of households; 1997 to 1999. The tax to be assessed, levied and collected upon the taxable incomes of all fiduciaries, except fiduciaries of nuclear decommissioning trust or reserve funds, and single individuals and heads of households shall be computed at the following rates for taxable years beginning after December 31, 1997, and before January 1, 2000:
71.06(1m)(a)
(a) On all taxable income from $0 to $7,500, 4.77%.
71.06(1m)(b)
(b) On all taxable income exceeding $7,500 but not exceeding $15,000, 6.37%.
71.06(1m)(c)
(c) On all taxable income exceeding $15,000, 6.77%.
71.06(1n)
(1n) Fiduciaries, single individuals and heads of households; 2000. The tax to be assessed, levied and collected upon the taxable incomes of all fiduciaries, except fiduciaries of nuclear decommissioning trust or reserve funds, and single individuals and heads of households shall be computed at the following rates for taxable years beginning after December 31, 1999, and before January 1, 2001:
71.06(1n)(a)
(a) On all taxable income from $0 to $7,500, 4.73%.
71.06(1n)(b)
(b) On all taxable income exceeding $7,500 but not exceeding $15,000, 6.33%.
71.06(1n)(c)
(c) On all taxable income exceeding $15,000 but not exceeding $112,500, 6.55%.
71.06(1n)(d)
(d) On all taxable income exceeding $112,500, 6.75%.
71.06(1p)
(1p) Fiduciaries, single individuals and heads of households; after 2000. The tax to be assessed, levied and collected upon the taxable incomes of all fiduciaries, except fiduciaries of nuclear decommissioning trust or reserve funds, and single individuals and heads of households shall be computed at the following rates for taxable years beginning after December 31, 2000:
71.06(1p)(a)
(a) On all taxable income from $0 to $7,500, 4.6%.
71.06(1p)(b)
(b) On all taxable income exceeding $7,500 but not exceeding $15,000, 6.15%.
71.06(1p)(c)
(c) On all taxable income exceeding $15,000 but not exceeding $112,500, 6.5%.
71.06(1p)(d)
(d) On all taxable income exceeding $112,500, 6.75%.
71.06(2)
(2) Married persons. The tax to be assessed, levied and collected upon the taxable incomes of all married persons shall be computed at the following rates:
71.06(2)(a)
(a) For joint returns, for taxable years beginning after July 31, 1986, and before January 1, 1998:
71.06(2)(a)2.
2. On all taxable income exceeding $10,000 but not exceeding $20,000, 6.55%.
71.06(2)(b)
(b) For married persons filing separately, for taxable years beginning after July 31, 1986, and before January 1, 1998:
71.06(2)(b)2.
2. On all taxable income exceeding $5,000 but not exceeding $10,000, 6.55%.
71.06(2)(c)
(c) For joint returns, for taxable years beginning after December 31, 1997, and before January 1, 2000:
71.06(2)(c)1.
1. On all taxable income from $0 to $10,000, 4.77%.
71.06(2)(c)2.
2. On all taxable income exceeding $10,000 but not exceeding $20,000, 6.37%.
71.06(2)(d)
(d) For married persons filing separately, for taxable years beginning after December 31, 1997, and before January 1, 2000:
71.06(2)(d)2.
2. On all taxable income exceeding $5,000 but not exceeding $10,000, 6.37%.
71.06(2)(e)
(e) For joint returns, for taxable years beginning after December 31, 1999, and before January 1, 2001:
71.06(2)(e)1.
1. On all taxable income from $0 to $10,000, 4.73%.
71.06(2)(e)2.
2. On all taxable income exceeding $10,000 but not exceeding $20,000, 6.33%.
71.06(2)(e)3.
3. On all taxable income exceeding $20,000 but not exceeding $150,000, 6.55%.
71.06(2)(e)4.
4. On all taxable income exceeding $150,000, 6.75%.
71.06(2)(f)
(f) For married persons filing separately, for taxable years beginning after December 31, 1999, and before January 1, 2001:
71.06(2)(f)2.
2. On all taxable income exceeding $5,000 but not exceeding $10,000, 6.33%.
71.06(2)(f)3.
3. On all taxable income exceeding $10,000 but not exceeding $75,000, 6.55%.
71.06(2)(g)
(g) For joint returns, for taxable years beginning after December 31, 2000:
71.06(2)(g)2.
2. On all taxable income exceeding $10,000 but not exceeding $20,000, 6.15%.
71.06(2)(g)3.
3. On all taxable income exceeding $20,000 but not exceeding $150,000, 6.5%.
71.06(2)(g)4.
4. On all taxable income exceeding $150,000, 6.75%.
71.06(2)(h)
(h) For married persons filing separately, for taxable years beginning after December 31, 2000:
71.06(2)(h)2.
2. On all taxable income exceeding $5,000 but not exceeding $10,000, 6.15%.
71.06(2)(h)3.
3. On all taxable income exceeding $10,000 but not exceeding $75,000, 6.5%.
71.06(2e)
(2e) Bracket indexing. For taxable years beginning after December 31, 1998, and before January 1, 2000, the maximum dollar amount in each tax bracket, and the corresponding minimum dollar amount in the next bracket, under
subs. (1m) and
(2) (c) and
(d), and for taxable years beginning after December 31, 1999, the maximum dollar amount in each tax bracket, and the corresponding minimum dollar amount in the next bracket, under
subs. (1n),
(1p) and
(2) (e),
(f),
(g) and
(h), shall be increased each year by a percentage equal to the percentage change between the U.S. consumer price index for all urban consumers, U.S. city average, for the month of August of the previous year and the U.S. consumer price index for all urban consumers, U.S. city average, for the month of August 1997, as determined by the federal department of labor, except that for taxable years beginning after December 31, 2000, the dollar amount in the top bracket under
subs. (1p) (c) and
(d),
(2) (g) 3. and
4. and
(h) 3. and
4. shall be increased each year by a percentage equal to the percentage change between the U.S. consumer price index for all urban consumers, U.S. city average, for the month of August of the previous year and the U.S. consumer price index for all urban consumers, U.S. city average, for the month of August 1999, as determined by the federal department of labor. Each amount that is revised under this subsection shall be rounded to the nearest multiple of $10 if the revised amount is not a multiple of $10 or, if the revised amount is a multiple of $5, such an amount shall be increased to the next higher multiple of $10. The department of revenue shall annually adjust the changes in dollar amounts required under this subsection and incorporate the changes into the income tax forms and instructions.
71.06(2m)
(2m) Rate changes. If a rate under
sub. (1),
(1m),
(1n),
(1p) or
(2) changes during a taxable year, the taxpayer shall compute the tax for that taxable year by the methods applicable to the federal income tax under section
15 of the internal revenue code.
71.06(2s)
(2s) Nonresidents and part-year residents. 71.06(2s)(a)(a) For taxable years beginning after December 31, 1996, and before January 1, 1998, with respect to nonresident individuals, including individuals changing their domicile into or from this state, the tax brackets under
subs. (1) and
(2) shall be multiplied by a fraction, the numerator of which is Wisconsin adjusted gross income and the denominator of which is federal adjusted gross income. In this paragraph, for married persons filing separately "adjusted gross income" means the separate adjusted gross income of each spouse, and for married persons filing jointly "adjusted gross income" means the total adjusted gross income of both spouses. If an individual and that individual's spouse are not both domiciled in this state during the entire taxable year, the tax brackets under
subs. (1) and
(2) on a joint return shall be multiplied by a fraction, the numerator of which is their joint Wisconsin adjusted gross income and the denominator of which is their joint federal adjusted gross income.
71.06(2s)(b)
(b) For taxable years beginning after December 31, 1997, and before January 1, 2000, with respect to nonresident individuals, including individuals changing their domicile into or from this state, the tax brackets under
subs. (1m) and
(2) (c) and
(d) shall be multiplied by a fraction, the numerator of which is Wisconsin adjusted gross income and the denominator of which is federal adjusted gross income. In this paragraph, for married persons filing separately "adjusted gross income" means the separate adjusted gross income of each spouse, and for married persons filing jointly "adjusted gross income" means the total adjusted gross income of both spouses. If an individual and that individual's spouse are not both domiciled in this state during the entire taxable year, the tax brackets under
subs. (1m) and
(2) (c) and
(d) on a joint return shall be multiplied by a fraction, the numerator of which is their joint Wisconsin adjusted gross income and the denominator of which is their joint federal adjusted gross income.
71.06(2s)(c)
(c) For taxable years beginning after December 31, 1999, and before January 1, 2001, with respect to nonresident individuals, including individuals changing their domicile into or from this state, the tax brackets under
subs. (1n) and
(2) (e) and
(f) shall be multiplied by a fraction, the numerator of which is Wisconsin adjusted gross income and the denominator of which is federal adjusted gross income. In this paragraph, for married persons filing separately "adjusted gross income" means the separate adjusted gross income of each spouse, and for married persons filing jointly "adjusted gross income" means the total adjusted gross income of both spouses. If an individual and that individual's spouse are not both domiciled in this state during the entire taxable year, the tax brackets under
subs. (1n) and
(2) (e) and
(f) on a joint return shall be multiplied by a fraction, the numerator of which is their joint Wisconsin adjusted gross income and the denominator of which is their joint federal adjusted gross income.
71.06(2s)(d)
(d) For taxable years beginning after December 31, 2000, with respect to nonresident individuals, including individuals changing their domicile into or from this state, the tax brackets under
subs. (1p) and
(2) (g) and
(h) shall be multiplied by a fraction, the numerator of which is Wisconsin adjusted gross income and the denominator of which is federal adjusted gross income. In this paragraph, for married persons filing separately "adjusted gross income" means the separate adjusted gross income of each spouse, and for married persons filing jointly "adjusted gross income" means the total adjusted gross income of both spouses. If an individual and that individual's spouse are not both domiciled in this state during the entire taxable year, the tax brackets under
subs. (1p) and
(2) (g) and
(h) on a joint return shall be multiplied by a fraction, the numerator of which is their joint Wisconsin adjusted gross income and the denominator of which is their joint federal adjusted gross income.
71.06(3)
(3) Tax table. The secretary of revenue shall prepare a table from which the tax in effect on taxable personal income shall be determined. Such table shall be published in the department's appropriate instructional booklets. The form and the tax computations of the table shall be substantially as follows:
71.06(3)(a)
(a) The title thereof shall be "Tax Table".
71.06(3)(b)
(b) The first 2 columns shall contain the minimum and the maximum amounts, respectively, of taxable income in brackets of not more than $100. Computation of tax on taxable income in excess of the amount shown on the table may be set forth at the foot of such table.
71.06(3)(c)
(c) The 3rd column shall show the amount of the tax payable for each bracket before the allowance of any credit. The tax shall be computed at the rates in effect, which rates shall be applied to the amount of income at the middle of each bracket. The amount of tax for each bracket shall be computed to the nearest dollar.
