Homestead Credit (Circuit Breaker)

State

Wisconsin

Year

2018

Variations in Receipt of Benefit

Benefit Varies with Income

Benefit Type

Circuit Breaker

Benefit

The benefit is a refundable state income tax credit for property taxes paid. It is determined by 2 brackets. For those with income at or below $8,060, the credit is 80% of up to $1,460 taxes paid, for a maximum credit of $1,168. For those with income above $8,060 but less than $24,680, the credit is equal to 80% of the amount by which property taxes exceed 8.785% of household income in excess of $8,060. These factors are indexed to inflation. Applications for credits on 2017 real estate tax bills must be filed with the Department of Revenue by 15 April 2022.

How is Benefit Disbursed

Credit to the income tax bill

Eligible Property Type

Residential

Characteristics of Eligible Property

Only residential property and up to 1 acre of surrounding land is eligible for this program.

Eligibility Criteria

Age

Homeowner

Income Ceiling

Renter

Other Criteria

Description of Eligibility Criteria

The claimant must be a homeowner or renter when filing the claim and must have resided in Wisconsin for previous whole prior year when filing the claim. The income ceiling for households in 2017 and 2018 is $24,680. The claimant or claimant's spouse must meet one of the following criteria: (1) must be 62 years of age or older by the last day of the year before the claim is filed; (2) must be disabled; or (3) must have earned income during the year. The claimant must be over 18 years of age but not claimed as a dependent during the year the to which the claim relates, unless the claimant is 62 years of age or older. To be eligible, the claimant may not be receiving the veterans and surviving spouse property tax credit or a farmland preservation credit for the same year.

Local Option in Adoption of Program

Local government is unable to exercise an option

Local Option Regarding Program Features

No local option regarding program features

State Funding for Local Tax Loss

State reimburses all of the local government tax loss

Description of State Funding for Tax Loss

Benefits is refundable if the credit exceeds the taxpayer’s state tax liability.

Record ID

WI101_RR18

Footnotes

Effective 23 September 2017, for claims filed in 2018 and thereafter, in order to qualify for the benefit, applicants must meet one of the following criteria: (1) claimant or claimant's spouse must have earned income during the year; (2) must be disabled; or (3)must be 62 years of age or older by the last day of the year before filing. In computing household income, a claimant may deduct $500 for each dependent living with the claimant. For renters, property taxes are assumed to be 20% of rent if heat is included or 25% of rent if heat is not included in the rent.

Sources

Wis. Stat. § 71.07 (4); Wis. Stat. § 71.51 ~ § 71.55 (in effect for 2018)
Wisconsin Department of Revenue, Wisconsin Homestead Credit Situations and Solutions, (2019). [https://www.revenue.wi.gov/DOR%20Publications/pb127.pdf Accessed 01/24/2019] View Archived Source

Wisconsin Department of Revenue Wisconsin Income Tax 2018 Form 1 (2018 income for filing in 2019) Income Tax Form line 22 [https://www.revenue.wi.gov/TaxForms2017through2019/2018-Form1.pdf Accessed 11/27/2018] View Archived Source

Wisconsin Department of Revenue Wisconsin Homestead Credit 2018 H and H-EZ Instructions [https://www.revenue.wi.gov/TaxForms2017through2019/2018-ScheduleHandH-EZ-inst.pdf Accessed 11/28/2018] View Archived Source

Wisconsin Department of Revenue Wisconsin Income Tax 2018 Form 1 Instructions [ View Archived Source Accessed 11/27/2018] View Archived Source Wisconsin Department of Revenue Application (Long form) for Homestead Credit (FY 2017) [https://www.revenue.wi.gov/TaxForms2017through2019/2017-ScheduleH.pdf Accessed 05/07/2018] View Archived Source

Wisconsin Department of Revenue, Application (H-EZ form) for Homestead Credit (2018 taxable information for filing in 2019). [https://www.revenue.wi.gov/TaxForms2017through2019/2018-ScheduleH-EZf.pdf Accessed 01/24/2019] View Archived Source

Wisconsin Department of Revenue, Application (Schedule H) for Homestead Credit (2018 taxable information for filing in 2019). [https://www.revenue.wi.gov/TaxForms2017through2019/2018-ScheduleHf.pdf Accessed 01/24/2019] View Archived Source

Wisconsin Department of Revenue, Application (EZ form) for Homestead Credit (FY 2017) [https://www.revenue.wi.gov/TaxForms2017through2019/2017-ScheduleH-EZ.pdf Accessed 05/07/2018] View Archived Source

Wisconsin Department of Revenue Homestead Tax Credit Program Summary (FY 2017) [https://www.revenue.wi.gov/DORReports/2017hmsted.pdf Accessed 05/07/2018] View Archived Source
Wisconsin Department of Revenue Website: FAQ, Claiming a Homestead Credit [https://www.revenue.wi.gov/Pages/FAQS/ise-home.aspx Accessed 05/07/2018] View Archived Source
2017 Wis. Sess. Laws no. 59 §1120;
2017 Wis. Sess. Laws no. 59 §1121

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