SB45: Bill Text

SB45,649,12 71.03 (4) (a) Natural persons whose total income is not in excess of $10,000 and consists entirely of wages subject to withholding for Wisconsin tax purposes and not more than $200 total of dividends, interest and other wages not subject to Wisconsin withholding, and who have elected the Wisconsin standard deduction and have not claimed either the credit for homestead property tax relief property tax and rent rebate under subch. VIII or deductions for expenses incurred in earning such income, shall, at their election, not be required to record on their income tax returns the amount of the tax imposed on their Wisconsin taxable income. Married persons shall be permitted this election only if the joint income of the husband and wife spouses does not exceed $10,000, if both report their incomes on the same joint income tax return form, and if both make this election.

SB45,1220 Section 1220. 71.03 (9) of the statutes is created to read:

SB45,649,16 71.03 (9) Medical Assistance coverage. (a) The department shall include the following questions and explanatory information on each individual income tax return under this section and a method for the taxpayer to respond to each question:

SB45,649,22 1. “Are you, your spouse, your dependent children, or any eligible adult child dependent not covered under a health insurance policy, health plan, or other health care coverage? ‘Eligible adult child dependent’ means a child who is under the age of 26 who is a full-time student or a child who is under the age of 27 who is called to active duty in the national guard or armed forces reserve while enrolled as a full- time student.”

SB45,650,2 2. “If you responded ‘yes’ to question 1, do you want to have evaluated your eligibility for Medical Assistance under subch. IV of ch. 49 of the Wisconsin Statutes or your eligibility for subsidized health insurance coverage?”

SB45,650,11 (b) For each person who responded “yes” to the question under par. (a) 2., the department shall provide that person’s contact information and other relevant information from that person’s individual income tax return to the department of health services to perform an evaluation of that person’s eligibility under the Medical Assistance program under subch. IV of ch. 49 or an evaluation of that person’s eligibility for subsidized health insurance coverage through an exchange, as defined under 45 CFR 155.20. The information provided to the department of health services may not be used to determine that the individual is ineligible to enroll in the Medical Assistance program under subch. IV of ch. 49.

SB45,1221 Section 1221. 71.05 (1) (j) of the statutes is created to read:

SB45,650,14 71.05 (1) (j) Tips. Amounts received as cash tips by an employee from the customers of the employee’s employer.

SB45,1222 Section 1222. 71.05 (6) (a) 15. of the statutes is amended to read:

SB45,650,21 71.05 (6) (a) 15. The amount of the credits computed under s. 71.07 (2dm), (2dx), (2dy), (3g), (3h), (3n), (3q), (3s), (3t), (3w), (3wm), (3y), (4k), (4n), (5f), (5h), (5i), (5j), (5k), (5r), (5rm), (6n), (8m), and (10) and not passed through by a partnership, limited liability company, or tax-option corporation that has added that amount to the partnership’s, company’s, or tax-option corporation’s income under s. 71.21 (4) or 71.34 (1k) (g).

SB45,1223 Section 1223. 71.05 (6) (a) 30. of the statutes is created to read:

SB45,651,3 71.05 (6) (a) 30. For taxable years beginning after December 31, 2024, any amount distributed during the taxable year from a catastrophe savings account, as described in s. 224.28, that was not used to pay an expense described in s. 224.28 (3), except that this subdivision applies only to amounts for which a subtraction was made under par. (b) 57. or 58.

SB45,1224 Section 1224. 71.05 (6) (b) 4. (intro.) of the statutes is amended to read:

SB45,651,18 71.05 (6) (b) 4. (intro.) Disability For taxable years beginning before January 1, 2025, disability payments other than disability payments that are paid from a retirement plan, the payments from which are exempt under subd. 54. and sub. (1) (am) and (an), if the individual either is single or is married and files a joint return and is under 65 years of age before the close of the taxable year to which the subtraction relates, retired on disability, and, when the individual retired, was permanently and totally disabled. In this subdivision, “permanently and totally disabled” means an individual who is unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment that can be expected to result in death or which has lasted or can be expected to last for a continuous period of not less than 12 months. An individual shall not be considered permanently and totally disabled for purposes of this subdivision unless proof is furnished in such form and manner, and at such times, as prescribed by the department. The exclusion under this subdivision shall be determined as follows:

SB45,1225 Section 1225. 71.05 (6) (b) 4m. of the statutes is created to read:

SB45,652,10 71.05 (6) (b) 4m. For taxable years beginning after December 31, 2024, disability payments other than disability payments that are paid from a retirement plan, the payments from which are exempt under subd. 54. and sub. (1) (am) and (an), if the individual is under 65 years of age before the close of the taxable year to which the subtraction relates, retired on disability, and, when the individual retired, was permanently and totally disabled. In this subdivision, “permanently and totally disabled” means an individual who is unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment that can be expected to result in death or which has lasted or can be expected to last for a continuous period of not less than 12 months. An individual shall not be considered permanently and totally disabled for purposes of this subdivision unless proof is furnished in such form and manner, and at such times, as prescribed by the department. The exclusion under this subdivision shall be determined as follows:

SB45,652,14 a. If the individual is single or files as a head of household and the individual’s federal adjusted gross income in the year to which the subtraction relates is less than $30,000, the maximum subtraction is $5,500 or the amount of disability pay reported as income, whichever is less.

SB45,652,18 b. If the individual is married and is a joint filer and the couple’s federal adjusted gross income in the year to which the subtraction relates is less than $60,000, the maximum subtraction is $5,500 per spouse that is disabled or the amount of disability pay reported as income, whichever is less.

SB45,652,22 c. If the individual is married and files a separate return and the sum of both spouses’ federal adjusted gross income in the year to which the subtraction relates is less than $60,000, the maximum subtraction is $5,500 or the amount of disability pay reported as income, whichever is less.

SB45,1226 Section 1226. 71.05 (6) (b) 19. cm. of the statutes is amended to read:

SB45,653,13 71.05 (6) (b) 19. cm. For taxable years beginning after December 31, 2020, for a person who is a nonresident or a part-year resident of this state, modify the amount calculated under subd. 19. b. by multiplying the amount by a fraction the numerator of which is the person’s wages, salary, tips, unearned income, and net earnings from a trade or business that are taxable by this state and the denominator of which is the person’s total wages, salary, tips, unearned income, and net earnings from a trade or business. In this subd. 19. cm., for married persons filing separately “wages, salary, tips, unearned income, and net earnings from a trade or business” means the separate wages, salary, tips, unearned income, and net earnings from a trade or business of each spouse, and for married persons filing jointly “wages, salary, tips, unearned income, and net earnings from a trade or business” means the total wages, salary, tips, unearned income, and net earnings from a trade or business of both spouses.

SB45,1227 Section 1227. 71.05 (6) (b) 19. dm. of the statutes is amended to read:

SB45,653,18 71.05 (6) (b) 19. dm. For taxable years beginning after December 31, 2020, reduce the amount calculated under subd. 19. b. or cm. to the person’s aggregate wages, salary, tips, unearned income, and net earnings from a trade or business that are taxable by this state.

SB45,1228 Section 1228. 71.05 (6) (b) 22. of the statutes is renumbered 71.05 (6) (b) 22. a. and amended to read:

SB45,654,4 71.05 (6) (b) 22. a. For taxable years beginning after December 31, 1995, and before January 1, 2025, an amount up to $5,000 that is expended during the period that consists of the year to which the claim relates and the prior 2 taxable years, by a full-year resident of this state who is an adoptive parent, for adoption fees, court costs, or legal fees relating to the adoption of a child, for whom a final order of adoption has been entered under s. 48.91 (3) or by an order of a court of any other state, or upon registration of a foreign adoption under s. 48.97 (2), during the taxable year.

SB45,1229 Section 1229. 71.05 (6) (b) 22. b. of the statutes is created to read:

SB45,654,12 71.05 (6) (b) 22. b. For taxable years beginning after December 31, 2024, an amount up to $15,000 that is expended during the period that consists of the year to which the claim relates and the prior 2 taxable years, by a full-year resident of this state who is an adoptive parent, for adoption fees, court costs, or legal fees relating to the adoption of a child, for whom a final order of adoption has been entered under s. 48.91 (3) or by an order of a court of any other state, or upon registration of a foreign adoption under s. 48.97 (2), during the taxable year.

SB45,1230 Section 1230. 71.05 (6) (b) 28. e. of the statutes is amended to read:

SB45,655,2 71.05 (6) (b) 28. e. For an individual who is a nonresident or part-year resident of this state, multiply the amount calculated under subd. 28. a., am., b., c. or d. by a fraction the numerator of which is the individual’s wages, salary, tips, unearned income and net earnings from a trade or business that are taxable by this state and the denominator of which is the individual’s total wages, salary, tips, unearned income and net earnings from a trade or business. In this subd. 28. e., for married persons filing separately “wages, salary, tips, unearned income and net earnings from a trade or business” means the separate wages, salary, tips, unearned income and net earnings from a trade or business of each spouse, and for married persons filing jointly “wages, salary, tips, unearned income and net earnings from a trade or business” means the total wages, salary, tips, unearned income and net earnings from a trade or business of both spouses.

SB45,1231 Section 1231. 71.05 (6) (b) 28. f. of the statutes is amended to read:

SB45,655,6 71.05 (6) (b) 28. f. Reduce the amount calculated under subd. 28. a., am., b., c., d. or e. to the individual’s aggregate wages, salary, tips, unearned income and net earnings from a trade or business that are taxable by this state.

SB45,1232 Section 1232. 71.05 (6) (b) 32. b. of the statutes is amended to read:

SB45,655,19 71.05 (6) (b) 32. b. For an individual who is a nonresident or part-year resident of this state, multiply the amount calculated under subd. 32. a. by a fraction the numerator of which is the individual’s wages, salary, tips, unearned income and net earnings from a trade or business that are taxable by this state and the denominator of which is the individual’s total wages, salary, tips, unearned income and net earnings from a trade or business. In this subd. 32. b., for married persons filing separately “wages, salary, tips, unearned income and net earnings from a trade or business” means the separate wages, salary, tips, unearned income and net earnings from a trade or business of each spouse, and for married persons filing jointly “wages, salary, tips, unearned income and net earnings from a trade or business” means the total wages, salary, tips, unearned income and net earnings from a trade or business of both spouses.

SB45,1233 Section 1233. 71.05 (6) (b) 32. c. of the statutes is amended to read:

SB45,655,23 71.05 (6) (b) 32. c. Reduce the amount calculated under subd. 32. a. or b. to the individual’s aggregate wages, salary, tips, unearned income and net earnings from a trade or business that are taxable by this state.

SB45,1234 Section 1234. 71.05 (6) (b) 33. b. of the statutes is amended to read:

SB45,656,12 71.05 (6) (b) 33. b. For an individual who is a nonresident or part-year resident of this state, multiply the amount calculated under subd. 33. a. by a fraction the numerator of which is the individual’s wages, salary, tips, unearned income and net earnings from a trade or business that are taxable by this state and the denominator of which is the individual’s total wages, salary, tips, unearned income and net earnings from a trade or business. In this subd. 33. b., for married persons filing separately “wages, salary, tips, unearned income and net earnings from a trade or business” means the separate wages, salary, tips, unearned income and net earnings from a trade or business of each spouse, and for married persons filing jointly “wages, salary, tips, unearned income and net earnings from a trade or business” means the total wages, salary, tips, unearned income and net earnings from a trade or business of both spouses.

SB45,1235 Section 1235. 71.05 (6) (b) 33. c. of the statutes is amended to read:

SB45,656,16 71.05 (6) (b) 33. c. Reduce the amount calculated under subd. 33. a. or b. to the individual’s aggregate wages, salary, tips, unearned income and net earnings from a trade or business that are taxable by this state.

SB45,1236 Section 1236. 71.05 (6) (b) 35. c. of the statutes is amended to read:

SB45,657,5 71.05 (6) (b) 35. c. For an individual who is a nonresident or part-year resident of this state, multiply the amount calculated under subd. 35. a. or b., by a fraction the numerator of which is the individual’s wages, salary, tips, unearned income, and net earnings from a trade or business that are taxable by this state and the denominator of which is the individual’s total wages, salary, tips, unearned income, and net earnings from a trade or business. In this subd. 35. c., for married persons filing separately “wages, salary, tips, unearned income, and net earnings from a trade or business” means the separate wages, salary, tips, unearned income, and net earnings from a trade or business of each spouse, and for married persons filing jointly “wages, salary, tips, unearned income, and net earnings from a trade or business” means the total wages, salary, tips, unearned income, and net earnings from a trade or business of both spouses.

SB45,1237 Section 1237. 71.05 (6) (b) 35. d. of the statutes is amended to read:

SB45,657,9 71.05 (6) (b) 35. d. Reduce the amount calculated under subd. 35. a., b., or c. to the individual’s aggregate wages, salary, tips, unearned income, and net earnings from a trade or business that are taxable by this state.

SB45,1238 Section 1238. 71.05 (6) (b) 38. c. of the statutes is amended to read:

SB45,657,22 71.05 (6) (b) 38. c. For an individual who is a nonresident or part-year resident of this state, multiply the amount calculated under subd. 38. a. or b., by a fraction the numerator of which is the individual’s wages, salary, tips, unearned income, and net earnings from a trade or business that are taxable by this state and the denominator of which is the individual’s total wages, salary, tips, unearned income, and net earnings from a trade or business. In this subd. 38. c., for married persons filing separately “wages, salary, tips, unearned income, and net earnings from a trade or business” means the separate wages, salary, tips, unearned income, and net earnings from a trade or business of each spouse, and for married persons filing jointly “wages, salary, tips, unearned income, and net earnings from a trade or business” means the total wages, salary, tips, unearned income, and net earnings from a trade or business of both spouses.

SB45,1239 Section 1239. 71.05 (6) (b) 38. d. of the statutes is amended to read:

SB45,658,2 71.05 (6) (b) 38. d. Reduce the amount calculated under subd. 38. a., b., or c. to the individual’s aggregate wages, salary, tips, unearned income, and net earnings from a trade or business that are taxable by this state.

SB45,1240 Section 1240. 71.05 (6) (b) 42. c. of the statutes is amended to read:

SB45,658,15 71.05 (6) (b) 42. c. For an individual who is a nonresident or part-year resident of this state, multiply the amount calculated under subd. 42. a. or b., by a fraction the numerator of which is the individual’s wages, salary, tips, unearned income, and net earnings from a trade or business that are taxable by this state and the denominator of which is the individual’s total wages, salary, tips, unearned income, and net earnings from a trade or business. In this subd. 42. c., for married persons filing separately “wages, salary, tips, unearned income, and net earnings from a trade or business” means the separate wages, salary, tips, unearned income, and net earnings from a trade or business of each spouse, and for married persons filing jointly “wages, salary, tips, unearned income, and net earnings from a trade or business” means the total wages, salary, tips, unearned income, and net earnings from a trade or business of both spouses.

SB45,1241 Section 1241. 71.05 (6) (b) 42. d. of the statutes is amended to read:

SB45,658,19 71.05 (6) (b) 42. d. Reduce the amount calculated under subd. 42. a., b., or c. to the individual’s aggregate wages, salary, tips, unearned income, and net earnings from a trade or business that are taxable by this state.

SB45,1242 Section 1242. 71.05 (6) (b) 43. f. of the statutes is amended to read:

SB45,659,9 71.05 (6) (b) 43. f. An individual who is a nonresident or part-year resident of this state and who claims the subtraction under this subdivision shall multiply the amount calculated under subd. 43. a., b., c., or d. by a fraction the numerator of which is the individual’s wages, salary, tips, unearned income, and net earnings from a trade or business that are taxable by this state and the denominator of which is the individual’s total wages, salary, tips, unearned income, and net earnings from a trade or business. In this subd. 43. f., for married persons filing separately “wages, salary, tips, unearned income, and net earnings from a trade or business” means the separate wages, salary, tips, unearned income, and net earnings from a trade or business of each spouse, and for married persons filing jointly “wages, salary, tips, unearned income, and net earnings from a trade or business” means the total wages, salary, tips, unearned income, and net earnings from a trade or business of both spouses.

SB45,1243 Section 1243. 71.05 (6) (b) 49. a. of the statutes is amended to read:

SB45,659,16 71.05 (6) (b) 49. a. Subject to the definitions provided in subd. 49. b. to g. and the limitations specified in subd. 49. h. to j. for taxable years beginning after December 31, 2013, and subject to the limitation in subd. 49. k. for taxable years beginning after December 31, 2017, and subject to the limitation in subd. 49. m. for taxable years beginning after December 31, 2024, tuition expenses that are paid by a claimant for tuition for a pupil to attend an eligible institution.

SB45,1244 Section 1244. 71.05 (6) (b) 49. m. of the statutes is created to read:

SB45,659,22 71.05 (6) (b) 49. m. For taxable years beginning after December 31, 2024, no modification may be made under this subdivision unless the adjusted gross income of the claimant is less than $100,000 if the claimant is filing as single or head of household, $150,000 if the claimant is married and filing jointly, or $75,000 if the claimant is married and filing separately.

SB45,1245 Section 1245. 71.05 (6) (b) 57. of the statutes is created to read:

SB45,660,4 71.05 (6) (b) 57. For taxable years beginning after December 31, 2024, any increase in the value of a catastrophe savings account, as described in s. 224.28, other than from a deposit into the account, except that the subtraction under this subdivision may not be claimed by an account owner who has made a withdrawal from the account that was not used to pay an expense described in s. 224.28 (3).

SB45,1246 Section 1246. 71.05 (6) (b) 58. of the statutes is created to read:

SB45,660,10 71.05 (6) (b) 58. For taxable years beginning after December 31, 2024, an amount equal to any deposit made during the taxable year to a catastrophe savings account, as described in s. 224.28, by the account owner. The subtraction made under this subdivision may not exceed an amount equal to the amount specified for the account owner under s. 224.28 (4).

SB45,1247 Section 1247. 71.05 (6) (b) 59. of the statutes is created to read:

SB45,660,15 71.05 (6) (b) 59. For taxable years beginning after December 31, 2026, to the extent not otherwise excluded from Wisconsin taxable income if not for this subdivision, the amount of membership dues and expenses paid by the claimant during the taxable year to a labor organization, as defined in s. 5.02 (8m).

SB45,1248 Section 1248. 71.05 (22) (a) (title) of the statutes is amended to read:

SB45,660,18 71.05 (22) (a) (title) Election of deductions; husband and wife spousal deductions.

SB45,1249 Section 1249. 71.05 (22) (f) 1m. of the statutes is amended to read:

SB45,660,24 71.05 (22) (f) 1m. For taxable years beginning after December 31, 1997, in the case of a taxpayer with respect to whom an exemption under sub. (23) (b) 2. or (be) 2. is allowable to another person, the Wisconsin standard deduction shall be the lesser of the amount under subd. 2m. or one of the amounts calculated under subd. 3m., whichever amount under subd. 3m. is greater.

SB45,1250 Section 1250. 71.05 (23) (b) (intro.) of the statutes is amended to read:

SB45,661,3 71.05 (23) (b) (intro.) For taxable years that begin after December 31, 2000, and before January 1, 2025:

SB45,1251 Section 1251. 71.05 (23) (be) of the statutes is created to read:

SB45,661,5 71.05 (23) (be) For taxable years that begin after December 31, 2024:

SB45,661,8 1. A personal exemption of $1,200 if the taxpayer is required to file a return under s. 71.03 (2) (a) 1. or 2. and $1,200 for the taxpayer’s spouse, except if the spouse is filing separately or as a head of household.

SB45,661,10 2. An exemption of $1,200 for each dependent, as defined under section 152 of the Internal Revenue Code, of the taxpayer.

SB45,661,15 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.

SB45,1252 Section 1252. 71.05 (23) (c) of the statutes is amended to read:

SB45,662,6 71.05 (23) (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), and (be) 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.

SB45,1253 Section 1253. 71.06 (1q) (intro.) of the statutes is amended to read:

SB45,662,13 71.06 (1q) Fiduciaries, single individuals, and heads of households; after 2012 2013 to 2024. (intro.) 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, 2012, and before January 1, 2025:

SB45,1254 Section 1254. 71.06 (1r) of the statutes is created to read:

SB45,662,19 71.06 (1r) Fiduciaries, single individuals, and heads of households; after 2024. 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, 2024:

SB45,662,20 (a) On all taxable income from $0 to $7,500, 3.5 percent.

SB45,662,22 (b) On all taxable income exceeding $7,500 but not exceeding $15,000, 4.40 percent.

SB45,662,24 (c) On all taxable income exceeding $15,000 but not exceeding $225,000, 5.3 percent.

SB45,663,2 (d) On all taxable income exceeding $225,000 but not exceeding $1,000,000, 7.65 percent.

SB45,663,3 (e) On all taxable income exceeding $1,000,000, 9.80 percent.

SB45,1255 Section 1255. 71.06 (2) (i) (intro.) of the statutes is amended to read:

SB45,663,6 71.06 (2) (i) (intro.) For joint returns, for taxable years beginning after December 31, 2012, and before January 1, 2025:

SB45,1256 Section 1256. 71.06 (2) (j) (intro.) of the statutes is amended to read:

SB45,663,9 71.06 (2) (j) (intro.) For married persons filing separately, for taxable years beginning after December 31, 2012, and before January 1, 2025: