Your Master Tax Advisor
Tax Season 2007: What's new for
Wisconsin
By Mei-Feng Moe
Special Conditions
  
If you file a long form for Wisconsin return this year, you will notice a new "Special
Condition" box located to the right of the Filing Status section. You need to use these
codes for the "special conditions" listed below:
01 - If you have an extension of time to file due to service in support of Operation
Iraqi freedom in the United States.
02 - If you qualify for an extension because of service in a combat zone.
03 - If you qualify for an extension because of a presidentially-declared disaster.  
You'll need to indicate the specific disaster on the line provided.
04 - Divorced persons computing a refund or if the divorce decree apportions any tax
liability to the former spouse, enclose a copy of the decree to prevent the refund from
being applied to the former spouse's tax liability. If the divorce decree apportions any
refund between spouses, enclose the portion of the divorce decree that relates to
the tax refund.
05 - For those who file federal Form 8379, Injured Spouse Claim and Allocation
when you file a joint return with your spouse who owes to the government and you
are not liable for the debt./ 06 - If filing a joint return and the husband is deceased.
07 - If filing a joint return and the wife is deceased.
08 - If both spouses are deceased./ 10 - If filing form I-804 or if a surviving heir is
filing a return to claim a refund on behalf of a person who died.
09 - If more than one special condition applies.
Income
Effective 04/29/06, interest income received from Wisconsin Aerospace Authority
Bonds is exempt from WI income./ Farmers in the following counties suffering from
extended drought have an extra year (to 12/31/07) to defer gain and to purchase
replacement livestock:  Ashland, Barron, Bayfield, Burnett, Calumet, Chippewa,
Columbia, Dane, Door, Douglas, Dunn, Florence, Fond du Lac, Forest, Grant,
Green, Iowa, Iron, Jefferson, Kenosha, Lafayette, Langlade, Lincoln, Manitowoc,
Marathon, Marinette, Milwaukee, Oconto, Oneida, Ozaukee, Polk, Price, Racine,
Rock, Rusk, St. Croix, Sawyer, Sheboygan, Taylor, Vilas, Walworth, Washburn,
Washington, and Waukesha.
Employee Medical Care Insurance Subtraction
The amount paid for medical care insurance that can be used for subtraction is
increased from 50% to 100% .  The subtraction is subject to the same earned
income limitation.
Tuition Subtraction
Maximum subtraction for qualified college tuition is increased to $4,536 per student.
Armed Forces Member Credit
Maximum credit per member is increased from $200 to $300 for active duty military
pay received while stationed outside the United States.
Historic Rehabilitation Credits
A new line (23) is added for claiming this credit which is not new. Any person who
received certification or approval of a project from the State Historic Society may
claim a credit of 25% of the approved costs to preserve or rehabilitate a historic
property located in Wisconsin.  
Other Credits
Manufacturer's sales tax credit is replaced by sales tax exemption —
manufacturers must provide an exemption certificate (form S-211) to supplier of the
fuel and electricity. The credit may not be claimed for tax year beginning 2006. Any
unused credits from prior years may be carried forward for 20 years.
Donations
New lines are added for the following donations: multiple sclerosis, firefighters
memorial and prostate cancer research.
Farmland Tax Relief Credit
The percentage rate is increased from 20% to 23%. The maximum credit remains at
$1,500, based on 23% of the first $6,521 farmland property tax.  (If you have at least
35 acres of farmland enrolled in the Conservation Reserve program, or if you meet
the gross farm income requirement, you may be eligible to claim this credit.)

About the Author
Mei-Feng Moe (May) is a Master tax Advisor certified by H&R Block. In addition to
giving tax advice and preparing income tax returns, she has also been teaching
income tax courses for a number of years. She is an enrolled Agent who may
represent clients before the IRS. She also holds series 6 and series 63 security
licenses. Recently, she has been invited twice by a local TV station to speak about
taxation updates.