| 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. |
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