Tax 14.02 HistoryHistory: 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 14.03Tax 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(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 NoteExample: 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 NoteTotal 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)(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.c.c. Non-legally responsible relative, or “NLRR” AFDC payments or kinship care payments under s. 48.57, Stats. These are payments received as a relative other than a parent, for caring for a dependent child in the claimant’s homestead. Tax 14.03(4)(b)3.e.e. Reimbursement from a governmental agency for amounts originally paid for by the recipient, not including cash reimbursements for home energy assistance or for services under Title XX of the federal social security act and community options program, or “COP” payments under s. 46.27, 2017 Stats. Tax 14.03(4)(b)3.f.f. Adoption assistance payments under Title IV-E of the federal social security act or from another state, or payments by the Wisconsin department of children and families under s. 48.975, Stats., to adoptive parents of children having special needs as described in s. DCF 50.03 (1) (b). Tax 14.03(4)(b)3.g.g. Veterans administration payments for reimbursement of services purchased by the recipient.