Tax 14.02 Note Note: A written withdrawal of a farmland preservation credit claim should be mailed to Wisconsin Department of Revenue, P.O. Box 8906, Madison, WI 53708-8906.

Tax 14.02(10) (10) Person claimed as a dependent. Under s. 71.53 (2) (d), Stats., a person does not qualify for a homestead credit if the person is claimed as a dependent for federal income tax purposes during the year to which the claim relates, unless the person claiming a homestead credit is 62 years of age or older as of December 31 of the claim year. However, a person is not disqualified if any of the following apply:

Tax 14.02(10)(a) (a) The person is improperly claimed as a dependent on a federal income tax return.

Tax 14.02(10)(b) (b) The person qualifies to be claimed as a dependent on a federal income tax return but is not claimed.

Tax 14.02(10)(c) (c) The person is properly claimed as a dependent on a federal income tax return but on a later amended federal income tax return is not claimed.

Tax 14.02(11) (11) Deceased claimant. Under s. 71.53 (1) (b), Stats., a person must be alive at the time a homestead credit claim is filed. A claim completed and signed but not filed until after a person’s death shall be denied.

Tax 14.02 Note Note: The qualification for a homestead credit of a person 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 14.02 Note Note: Section Tax 14.02 interprets ss. 71.52 (1), (2) and (7), 71.53 (1) (b) and (c) and (2) (d) and 71.58 (1) (b), Stats.

Tax 14.02 History History: Cr. Register, February, 1990, No. 410, eff. 3-1-90; r. (2) (c) and am. (5), (9), (10) and (11), Register, July, 2000, No. 535, eff. 8-1-00; CR 21-085: am. (9) (Example) Register August 2022 No. 800, eff. 9-1-22.

Tax 14.03 Tax 14.03 Household income and income.

Tax 14.03(1) (1) Purpose. This section clarifies the meaning of“household income” and “income” includable in household income as the terms apply to homestead credit claims.

Tax 14.03(2) (2) Definitions. In this section:

Tax 14.03(2)(a) (a) “Household income” has the meaning specified in s. 71.52 (5), Stats.

Tax 14.03(2)(b) (b) “Income” has the meaning specified in s. 71.52 (6), Stats.

Tax 14.03(3) (3) Deduction for dependents.

Tax 14.03(3)(a) (a) Under s. 71.52 (5), Stats., a deduction of $500 is allowed for each of the claimant’s dependents, as defined in s. 152 of the Internal Revenue Code, who have the same principal abode as the claimant for more than 6 months during the calendar year to which a claim for homestead credit relates. A claimant may multiply the number of dependents with the same principal abode for more than 6 months by $500 and subtract the result from the total of the income items to arrive at household income.

Tax 14.03 Note Example: A claimant and the claimant’s spouse claim 3 dependents on their 2014 federal income tax return, and all 3 dependents have the same principal abode as the claimant for the entire year. Household income items include Wisconsin adjusted gross income of $10,500, depreciation of $1,500 and unemployment insurance of $500.

Tax 14.03 Note Total household income is $11,000, consisting of the total of the income items listed, $12,500, minus the dependent deduction of $1,500, which is $500 multiplied by 3 dependents.

Tax 14.03(3)(b) (b) A dependent is considered to have the same principal abode as the claimant during temporary absences from the claimant’s homestead for reasons such as school attendance, illness, vacations, business commitments or military service.

Tax 14.03(3)(c) (c) In the following situations, a dependent who does not have the same principal abode as the claimant for more than 6 months during the calendar year to which a claim for homestead credit relates is nonetheless considered to have the same principal abode for more than 6 months if during that year:

Tax 14.03(3)(c)1. 1. The dependent is born or dies, and the dependent has the same principal abode as the claimant during the entire time the dependent is alive during that year.

Tax 14.03(3)(c)2. 2. The dependent is adopted by the claimant, is placed with the claimant for adoption or becomes the stepchild of the claimant, and the dependent has the same principal abode as the claimant from that time to the end of that calendar year.

Tax 14.03(4) (4) Items includable in income. Under s. 71.52 (6), Stats., income includes the sum of:

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.a. a. Aid to families with dependent children, or “AFDC.”