SB803,19,321 71.07 (5) (a) 15. The amount claimed as a deduction for medical care insurance
22under section 213 of the Internal Revenue Code that is exempt from taxation under
23s. 71.05 (6) (b) 17. to 20. 19., 35., 36., 37., 38., 39., 40., 41., and 42. and the amount

1claimed as a deduction for a long-term care insurance policy under section 213 (d)
2(1) (D) of the Internal Revenue Code, as defined in section 7702B (b) of the Internal
3Revenue Code that is exempt from taxation under s. 71.05 (6) (b) 26.

SB803,20,75 71.07 (6) (am) 1. In this paragraph For purposes of subd. 1m., “earned income"
6means qualified earned income, as defined in section 221 (b) of the internal revenue
7code as amended to December 31, 1985, plus employee business expenses under
8section 62 (2) (B) to (D) of that code, allocable to Wisconsin under s. 71.04, plus
9amounts received by the individual for services performed in the employ of the
10individual's spouse minus the amount of disability income excluded under s. 71.05
11(6) (b) 4. and minus any other amount not subject to tax under this chapter wages,
12salaries, or professional fees, and other amounts received as compensation for
13personal services actually rendered, but does not include that part of the
14compensation derived by the taxpayer for personal services rendered by him or her
15to a corporation which represents a distribution of earnings or profits rather than a
16reasonable allowance as compensation for the personal services actually rendered.
17In the case of a taxpayer engaged in a trade or business in which both personal
18services and capital are material income-producing factors, under federal
19regulations, a reasonable allowance as compensation for the personal services
20rendered by the taxpayer shall be considered as earned income. Earned income does
21not include any amount not included in gross income, received as a pension or
22annuity, paid or distributed out of an individual retirement plan (within the meaning
23of section 7701 (a) (37) of the Internal Revenue Code), received as deferred

1compensation, or received for services, not in the course of the employer's trade or
2business, or domestic service in a private home of the employer, performed by an
3individual in the employ of his or her spouse. Earned income is computed
4notwithstanding the fact that each spouse owns an undivided one-half interest in
5the whole of the marital property. A marital property agreement or unilateral
6statement under ch. 766 transferring income between spouses has no effect in
7computing earned income under this paragraph.

SB803,20,169 71.07 (6) (am) 1m. In this paragraph, “qualified earned income” means an
10amount equal to the excess of the earned income of the spouse for the taxable year,
11over an amount equal to the sum of the deductions described in paragraphs (1), (2)
12(B), (C), and (E), (6), (7), and (12) of section 62 (a) of the Internal Revenue Code to the
13extent such deductions are properly allocable to or chargeable against earned
14income, allocable to Wisconsin under s. 71.04, minus the amount of disability income
15excluded under s. 71.05 (6) (b) 4. and minus any other amount not subject to tax
16under this chapter.

SB803,20,2018 71.07 (6) (am) 2. d. For taxable years beginning after December 31, 2000, 3
19percent of the qualified earned income of the spouse with the lower qualified earned
20income, but not more than $480.

SB803,21,117 71.07 (9e) (aj) (intro.) For taxable years beginning after December 31, 2010, an
8individual may credit against the tax imposed under s. 71.02 an amount equal to one
9of the following percentages of the federal basic earned income credit for which the
10person is eligible for the taxable year under section 32 (b) (1) (A) to (C) of the Internal
11Revenue Code:

SB803,22,215 71.07 (9e) (g) 2. The advance payment amount that an individual's employer
16shall add to the individual's paycheck, as described in subd. 1., shall be equal to a
17percentage of the amount that the individual's employer adds to the individual's
18paycheck as an advance earned income tax credit payment under federal law. The
19percentage shall be the same percentage as is specified in par. (af), based on the
20number of qualifying children that the individual has 4 percent if the individual has

1one qualifying child, 14 percent if the individual has 2 qualifying children, or 43
2percent if the individual has 3 or more qualifying children.