Tax 14.01(7)(a)2. 2. The “extension agreement” provision under s. 71.77 (5), Stats.

Tax 14.01(7)(a)3. 3. The “six-year” provision under s. 71.77 (7) (a), Stats.

Tax 14.01(7)(a)4. 4. The “federal change” provisions under s. 71.77 (7) (b), Stats.

Tax 14.01(7)(b) (b) Under s. 71.75 (7), Stats., the department shall act on a claim for homestead credit within one year after it receives the claim, or the credit shall be allowed even if incorrect, unless the claimant has agreed in writing to an extension of the one-year time period. Within the one-year period, prior to allowing the credit, the claimed credit may be reduced. However, under s. 71.74 (8) (a), Stats., if the date of acting on an amended claim is later than the last date for adjusting an original claim as provided in par. (a), the credit may not be reduced to an amount less than the credit allowed on the original claim, and after allowing the credit on the amended claim no further reduction of the credit may be made.

Tax 14.01 Note Example: Claimant A timely files a 2013 claim for homestead credit and receives a homestead credit of $500. On November 1, 2019, Claimant A files an amended 2013 claim for homestead credit claiming a revised 2013 credit of $700. Upon review of the file, the department determines that Claimant A’s correct homestead credit for 2013 is $300 rather than the $500 allowed on the original claim or the $700 claimed on the amended claim.

Tax 14.01 Note Since the amended 2013 homestead credit claim will be acted on after April 15, 2018, the last date for adjusting an original 2013 claim, the department must act on the amended claim by November 1, 2020. Prior to that date the department may notify Claimant A that no additional credit is allowable for 2013. However, the $200 of excessive credit allowed on the original claim, the difference between the $500 allowed and the correct credit of $300, may not be recovered by the department.

Tax 14.01(8) (8) interest on incorrect claims.

Tax 14.01(8)(a) (a) Excessive claims. Under s. 71.82 (1) (c), Stats., excessive homestead credit amounts, not the result of negligence or fraudulent intent, that have been paid or credited shall be subject to interest at 12% per year from the deadline for filing the claim. Assessments to collect excessive homestead credit amounts payable before the deadline for filing the claim may not include interest charges.

Tax 14.01(8)(b) (b) Understated claims. Under s. 71.55 (4), Stats., the department may not pay interest on any homestead credit, including any additional credit, refund or payment allowed as the result of the review of a homestead credit claim or an amended claim.

Tax 14.01 Note Note: Blank forms for filing a homestead credit claim, rent certificates and instructions for claiming the credit may be obtained at any department office throughout the state or by writing to Wisconsin Department of Revenue, P.O. Box 8903, Madison, WI 53708-8903.

Tax 14.01 Note Note: Section Tax 14.01 interprets ss. 71.03 (6m), 71.51 to 71.55, 71.74 (8) (a), 71.75 (2) and (7), 71.77 (2) and 71.82 (1) (c), Stats.

Tax 14.01 History History: Cr. Register, February, 1990, No. 410, eff. 3-1-90; am. (3) (a), Register, January, 1991, No. 421, eff. 2-1-91; am. (1), (2) (intro.), (3) (a), (4), (5) (b), (6) and (8), renum. (2) (a) to (d) to be (2) (b), (c) (d) and (a), and am. (a) and (b), renum. (5) (a) to be (5) (a) (intro.) and am., renum. (7) to be (7) (a) (intro.) and am., cr. (5) (a) 1., 2., (7) (a) 1. to 4. and (b), Register, July, 2000, No. 535, eff. 8-1-00; CR 16-046: am. (4) (a) to (c) Register January 2018 No. 745, eff. 2-1-18; CR 19-141: cr. (2) (am) Register September 2020 No. 777, eff. 10-1-20; CR 21-085: am. (5) (a) 2. (Example), (b) (Example), (7) (b) (Example) Register August 2022 No. 800, 9-1-22.

Tax 14.02 Tax 14.02 Qualification for credit.

Tax 14.02(1) (1) Purpose. This section clarifies the requirements to qualify for the Wisconsin homestead credit.

Tax 14.02(2) (2) Two members of a household meeting qualifications.

Tax 14.02(2)(a) (a) Under s. 71.53 (1) (c), Stats., only one member of a household existing at the end of a calendar year may claim a homestead credit for that year. Thus, if a husband and wife reside in one homestead at the end of a calendar year and both qualify for the homestead credit, only one of them may claim the credit.

Tax 14.02(2)(b) (b) Section 71.52 (1), Stats., provides: “. . .When 2 individuals of a household are able to meet the qualifications for a claimant, they may determine between them as to who the claimant is. If they are unable to agree, the matter shall be referred to the secretary of revenue and the secretary’s decision is final.”

Tax 14.02 Note Note: Requests for a determination under par. (b) should be addressed to Wisconsin Department of Revenue, P.O. Box 8906, Madison, WI 53708-8906.

Tax 14.02(3) (3) More than one household in a homestead. Under s. 71.53 (1) (c), Stats., one claimant from each household may claim a homestead credit whether the household is the sole occupant of a homestead or whether several households share the homestead.

Tax 14.02(4) (4) Household occupying more than one homestead in a year. Section 71.52 (7), Stats., provides “. . .If a household owns and occupies 2 or more homesteads in the same calendar year, property taxes accrued is the sum of the prorated property taxes accrued attributable to the household for each of such homesteads. If the household owns and occupies the homestead for part of the calendar year and rents a homestead for part of the calendar year, it may include both the proration of taxes on the homestead owned and rent constituting property taxes accrued with respect to the months the homestead is rented in computing the amount of the claim . . .” Thus, if a household owns and occupies a homestead in Wisconsin for a portion of the year and then establishes a homestead in a rented dwelling in Wisconsin for the remainder of the calendar year, property taxes accrued shall be the prorated portion of property taxes attributable to the months the household resided in the owned homestead and rent constituting property taxes accrued shall be 25% of the gross rent paid for the remainder of the year, or 20% if heat was included in the cost of the rent.

Tax 14.02 Note Example: A household owns and occupies a homestead in Wisconsin from January 1 to April 30, and then establishes a homestead in a rented dwelling in Wisconsin with no heat furnished for the remainder of the calendar year. The annual property taxes accrued on the owned homestead equaled $1,800 and gross rent paid for the last 8 months of the year totaled $2,800.

Tax 14.02 Note The property taxes and rent allowable for homestead credit purposes equals $1,300, consisting of four-twelfths of the $1,800 of property taxes accrued, or $600, plus 25% of the gross rent of $2,800, or $700 of rent constituting property taxes accrued.

Tax 14.02(5) (5) Household occupying more than one dwelling at the same time. Under s. 71.52 (2), Stats., “gross rent” is rental paid for the right of occupancy of a homestead, and under s. 71.52 (7), Stats., “property taxes accrued” are property taxes levied on the homestead of a household. Since a homestead is the principal dwelling of a household, if a household pays gross rent or property taxes accrued on 2 dwellings occupied concurrently by the household, a claimant may claim only the rent or property taxes pertaining to the principal dwelling.

Tax 14.02 Note Examples: Examples of 2 dwellings occupied concurrently include:

Tax 14.02 Note 1) A claimant maintains a permanent homestead and lives part of the year at a summer cottage which he or she owns.

Tax 14.02 Note 2) A claimant moves from one apartment to another and pays rent for both apartments for a two-month period.

Tax 14.02(6) (6) Temporary absence from homestead. A claimant who is temporarily absent from a homestead and who does not establish a homestead elsewhere is considered to reside in the homestead for the period of the temporary absence.

Tax 14.02 Note Examples: 1) A person is in the hospital at the end of the calendar year and it is expected that the absence is temporary. The person is considered to reside in the homestead from which the person is temporarily absent.

Tax 14.02 Note 2) A person seasonally employed away from the homestead is treated similarly as in example 1.