New Wisconsin Income Tax Laws Passed in 2017
(Click above to view Wisconsin Tax Bulletin 199, October 2017)

Changes to 2017 Wisconsin Income Tax Laws Summarized
(Click above to view Wisconsin Tax Bulletin 200, January 2018)

Free 2017 PDFs

 

Wisconsin State Retirement Benefits - May 1, 2018 Increase

ADJUSTMENT ... In March, Wisconsin Employee Trust Funds announced the increase or decrease in pension benefits for retired state workers.  The annual adjustment takes place on May 1 of every year, but it’s helpful for preparers to know the amounts ahead of time to help the taxpayer adjust their withholding or estimated payments for 2018.

The ACTUAL adjustments beginning May 2018:
 FIXED/CORE: + 2.4% (increase)
 VARIABLE:     + 17.0% (increase)

SHORTCUT ... Once again, for estimate purposes, we have calculated a “shortcut method” to easily compute the total retirement benefit for the entire year, which includes the first 4 months and the higher amounts for the remaining 8 months.

D.A.T. Publisher's Shortcut Method for 2018:
Current (Jan, Feb, Mar, Apr) gross monthly annuity amount ...
(Note: keep in mind that this computation is based on the annuity amount received BEFORE the change in May!)

     Current Monthly FIXED  x 12.192 = Total Fixed for the entire year
     Current Monthly VARIABLE x 13.36 = Total Variable for the entire year (corrected March 22)

 

Example as PROOF ...

Suppose Judy's gross monthly annuity for March 2018 is
         $1,000 for fixed and
         $1,000 for variable. 

$1,000 fixed x 12.192 = $12,192
   (1st 4 months at $1,000/mo = $4,000)
   (Last 8 months at $1,024/mo = $8,192)
           ($1,024 reflects monthly increase by 2.4%)

$1,000 variable x 13.36 = $13,360
   (1st 4 months at $1,000/mo = $4,000)
   (Last 8 months at $1,170/mo = $9,360)
           ($1,170 reflects monthly increase by 17%)

Judy's total fixed amount for 2018 will be $12,192

Judy's total variable amount for 2018 will be $13,360

 

Updated Instructions to 2017 Schedule OS

New 2017 Wisconsin Schedule I

Highlights from WTB #200 (see link above):

    Updated limits to ... deductions for Tuition, College Savings Account
    Changes to ... NOL Carryforwards/Carrybacks, Itemized Deduction Credit for Part-Year & Nonresidents
    Homestead Credit (see our coverage further down on this page)
    Veterans & Surviving Spouses Property Tax Credit - Sale/Purchase of Property

     

New 2017 Wisconsin Schedule I

Homestead Credit Changes, 2017

    Important change, beginning 2017...
                     One of the qualifications is ...
    “At least 18 years old on Dec 31, 2017”
                     NEW = If under age 62 and not disabled, claimant must have earned income to qualify

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        Homestead Instructions - Wisconsin Income Tax - 2017-Form1AandW

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        Disabled 2017-11-24 Sch H Instructions

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        Earned Income = 2017 Schedule H & H-EZ Instructions - Wisconsin Homestead Credit - 2017-S

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    How much income is required to meet the “earned income” qualification for Homestead Credit (from above)?                                

      • As long as the claimant has a positive amount of earned income, they meet this qualification for the homestead credit.”
        (WDOR response to us Nov 29, 2017)
         
      • Apparently, someone who otherwise qualified but only worked one day during the year would qualify!.  Or, worked one hour!
        In fact, someone could claim to have earned just $10 of self-employment income and would still qualify.

    New Schedule GL for Homestead Credit claimants who sold their home:


Other Changes Effective 2017

    Wisconsin follows Federal IRC as of 12/31/16 (with exceptions)

    Some Federal tax laws from 2014-2016 were adopted by Wisconsin.

    NOL after 9/22/2017 not allowed unless loss was computed on a return filed within 4 years. NOL carryback
    after 9/22/2017 not allowed unless loss is claimed within 4 years of year of loss.

    Form 1NPR Standard Deduction for Itemized Deduction Credit Revised

    Credit Limitation for Tax Paid to Other States Revised

    Adoption Expenses Revised for Purposes of the Deduction

    January 1 Birthday:

    2017-11-29 12_28_00-2017 I-111 Form 1 Instructions - 2017-Form1-Inst.pdf

     


Changes Effective 2018

    New limitations for Historic Rehabilitation Credits

    QCD from IRA - Same as Federal

    Research Tax Credit partially refundable

    Homestead Credit Limitations Revised
     

     

Changes Effective 2019

    Alternative Minimum Tax eliminated

 

Links to Other News

WDOR News for Tax Professionals (WDOR site)

WDOR News Articles for Individuals (WDOR site)

WDOR Online Services, Personal and Business (WDOR site)

Tax Practitioner Questions from 2016  - Answered by WDOR in 2017. (WDOR site)

Average Tax Preparation Fees (CPA Practice Advisor)

Driver’s License Required in Some States When E-Filing (Journal of Accountancy