Current through February 26, 2024
(1) PURPOSE. This
section describes the Wisconsin homestead credit, defines terms and sets forth
administrative provisions applicable to all sections of this chapter.
(2) DEFINITIONS. In this chapter and in ss.
71.51 to
71.55, Stats.:
(a) "County relief" means assistance provided
by a county under s.
59.53(21),
Stats., to an eligible dependent person. County relief is a separate program in
itself, funded by a block grant program under subch. II of ch. 49, Stats. It
does not include other assistance programs, such as social security,
supplemental security income, state supplemental payments, federal food stamps,
Title XX benefits, community options program payments, aid to families with
dependent children, Wisconsin works payments or foster care.
(am) "Disqualified loss" has the meaning
given in s.
71.52(1e),
Stats.
(b) "Domicile" has the same
meaning for Wisconsin homestead credit purposes as for Wisconsin individual
income tax purposes. A claimant's domicile is the true, fixed and permanent
home where the claimant intends to remain permanently and indefinitely and to
which, whenever absent, the claimant intends to return. It is often referred to
as a "legal residence." A claimant may be physically present or residing in one
locality and maintain a domicile in another but may have only one domicile at
any time.
(c) "Domiciled" means
maintained a domicile.
(d)
"Dwelling" means the principal dwelling of a qualified household.
(e) "Household" means a claimant and an
individual related to the claimant as husband or wife residing in the same
homestead as the claimant.
(3) WISCONSIN HOMESTEAD CREDIT.
(a) Sections
71.51 to
71.55, Stats.,
provide credit in the form of an income tax credit or a refund to qualifying
persons who own or rent their Wisconsin homestead. A claimant may claim
Wisconsin property taxes accrued or rent constituting property taxes accrued or
both on the claimant's homestead or, in certain cases as described in s. Tax
14.04 (3) (e), Wisconsin property taxes accrued on the claimant's former
homestead, as a basis for calculating a credit against Wisconsin income tax
otherwise due. If the credit exceeds the claimant's Wisconsin income tax
otherwise due or if no income tax is due, the amount not offset against
Wisconsin income tax and not applied against any liability under s.
71.55(1),
Stats., is paid to the claimant.
(b) Under s.
71.54(3),
Stats., if an approved homestead credit claim by a qualified claimant is more
than zero but less than $10, the amount of credit paid or credited shall be
$10.
(c) Wisconsin homestead credit
claims shall be calculated on a calendar year basis.
(4) HOW TO FILE.
(a) A homestead credit claim shall be filed
on schedule H or H-EZ, titled "Wisconsin homestead credit."
Note: Schedules H and H-EZ are available from the
department's website at www.revenue.wi.gov.
(b) If a person or the person's spouse files
a Wisconsin income tax return and claims a homestead credit on the return, the
claimant shall attach schedule H or H-EZ to the income tax return. If the
claimant has previously filed the income tax return or is filing an income tax
return separately from the schedule H or H-EZ, the preferred procedure for
filing a homestead credit claim is to file a duplicate copy of the income tax
return with schedule H or H-EZ and to write the words
"Duplicate" on the top of the first page of the tax return
copy and "Income Tax Return Separately Filed" on the top of
schedule H or H-EZ.
(c) If neither
the claimant nor the claimant's spouse is required to file a Wisconsin income
tax return for the year to which the claim relates, the claimant may file
schedule H or H-EZ without attaching it to a return.
(5) TIME WITHIN WHICH ORIGINAL AND AMENDED
CLAIMS SHALL BE FILED.
(a) Under s.
71.53(2)
(a), Stats., an original homestead credit
claim shall be filed with the department in conformity with the filing
requirements of s.
71.03(6), (6m) and
(7), Stats., or the department shall disallow
the claim. The deadline for filing a claim is as follows:
1. A claim filed for a taxable year for which
an income tax return is also filed shall be filed on a calendar year basis as
provided in sub. (3) (c), within 4 years, 3 ½ months of the end of the
calendar year to which the claim relates.
2. Under s.
71.03(6m),
Stats., a claim filed by a person who is not required to file an income tax
return shall be filed on a calendar year basis. The claim shall be filed within
4 years, 3 ½ months of the end of the calendar year to which the claim
relates.
(b) A claimant
who files a timely original claim may subsequently file an amended claim with
the department. Under s.
71.75(2),
Stats., an amended claim shall be filed within 4 years of the deadline for
filing the original claim or the department shall disallow the claim.
Example: Claimant A, who filed a 2015 homestead
credit claim on May 1, 2017, wishes to file an amended 2015 claim. The amended
claim may be filed any time on or before April 15, 2024, since the deadline for
filing the original 2015 claim was April 15, 2020.
(6) PROOF OF CLAIM. Under s.
71.55(7),
Stats., for the purpose of determining the correct amount of homestead credit
of a claimant, the claimant shall supply to the department all of the following
information that is applicable:
(a) All
information requested on the form.
(b) Proper verification of property taxes
accrued as provided in s. Tax 14.04 (4), if the claimant claims property taxes
accrued.
(c) Proper verification of
rent constituting property taxes accrued as provided in s. Tax 14.05 (4), if
the claimant claims rent constituting property taxes accrued.
(d) The signature of the claimant. If a
claimant is unable to sign a claim, the claimant may make an "X" or other mark
with the assistance of another person who signs the claim as a witness to the
validity of the signature. A legally authorized representative such as a
guardian or attorney-in-fact may sign a homestead credit claim in lieu of a
living claimant, but a homestead credit claim filed on behalf of a person who
is deceased at the time of filing shall be denied as provided in s. Tax 14.02
(11).
(7) INCORRECT
CLAIMS.
(a) The department may give notice of
an incorrect homestead credit amount. The department may correct incorrect
claims by adjusting the credit claimed, by assessment as income taxes are
assessed or by refund, as appropriate. Under ss.
71.74(8)
(a) and
71.77(2),
Stats., unless the adjustment period is extended by a specific statutory
provision, the notice shall be given by the later of 4 years from the
unextended due date of the corresponding original income tax return or 4 years
from the date a late-filed income tax return is filed. The statutory provisions
under which the adjustment period may be extended include the following:
1. The "intent to defeat or evade" provision
under s.
71.77(3),
Stats.
2. The "extension agreement"
provision under s.
71.77(5),
Stats.
3. The "six-year" provision
under s.
71.77(7)
(a), Stats.
4. The "federal change" provisions under s.
71.77(7)
(b), Stats.
(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.
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.
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.
(8) INTEREST ON INCORRECT CLAIMS.
(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.
(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.
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.
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.