SB45,647,6 70.995 (14) (b) If the department of revenue does not receive the fee imposed on a municipality imposes a fee under par. (a) by March 31 of each year on a municipality, the department shall reduce the a distribution made to the municipality under s. 79.02 (1) in the following year by the amount of the fee. Any amount that is not able to be deducted from a distribution under s. 79.02 (1) shall be directly imposed upon the municipality.

SB45,1213 Section 1213. 71.03 (2) (d) (title) of the statutes is amended to read:

SB45,647,8 71.03 (2) (d) (title) Husband and wife Spouses joint filing.

SB45,1214 Section 1214. 71.03 (2) (d) 1. of the statutes is amended to read:

SB45,647,12 71.03 (2) (d) 1. Except as provided in subds. 2. and 3. and par. (e), a husband and a wife spouses may file a joint return for income tax purposes even though one of the spouses has no gross income or no deductions.

SB45,1215 Section 1215. 71.03 (2) (d) 2. of the statutes is amended to read:

SB45,647,17 71.03 (2) (d) 2. No joint return may be filed if either the husband or wife spouse at any time during the taxable year is a nonresident alien, unless an election is in effect for the taxable year under section 6013 (g) or (h) of the internal revenue code Internal Revenue Code.

SB45,1216 Section 1216. 71.03 (2) (d) 3. of the statutes is amended to read:

SB45,648,2 71.03 (2) (d) 3. No joint return may be filed if the husband and wife spouses have different taxable years, except that if their taxable years begin on the same day and end on different days because of the death of either or both the joint return may be filed with respect to the taxable year of each unless the surviving spouse remarries before the close of his or her taxable year or unless the taxable year of either spouse is a fractional part of a year under section 443 (a) (1) of the internal revenue code Internal Revenue Code.

SB45,1217 Section 1217. 71.03 (2) (g) of the statutes is amended to read:

SB45,648,18 71.03 (2) (g) Joint return following separate return. Except as provided in par. (i), if an individual has filed a separate return for a taxable year for which a joint return could have been filed by the individual and the individual’s spouse under par. (d) or (e) and the time prescribed by law for timely filing the return for that taxable year has expired, the individual and the individual’s spouse may file a joint return for that taxable year. A joint return filed by the husband and wife spouses under this paragraph is their return for that taxable year, and all payments, credits, refunds or other repayments made or allowed with respect to the separate return of each spouse for that taxable year shall be taken into account in determining the extent to which the tax based upon the joint return has been paid. If a joint return is filed under this paragraph, any election, other than the election to file a separate return, made by either spouse in that spouse’s separate return for that taxable year with respect to the treatment of any income, deduction or credit of that spouse may not be changed in the filing of the joint return if that election would have been irrevocable if the joint return had not been filed.

SB45,1218 Section 1218. 71.03 (2) (m) 2. of the statutes is amended to read:

SB45,648,23 71.03 (2) (m) 2. If a husband and wife spouses change from a joint return to separate returns within the time prescribed in subd. 1., the tax paid on the joint return shall be allocated between them in proportion to the tax liability shown on each separate return.

SB45,1219 Section 1219. 71.03 (4) (a) of the statutes is amended to read:

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: