Individual Income Tax
Military

  1. I am in the military and stationed outside Wisconsin. If I file the correct military papers to change my state of residency, have I legally changed my state of residency from Wisconsin to the other state?
  2. I am a Wisconsin resident in the military. My spouse is not a Wisconsin resident and has no Wisconsin income. Which tax return do I file for Wisconsin?
  3. I am in the military and I am temporarily stationed in Wisconsin.  My spouse and I are not Wisconsin residents. My spouse earned wages working in Wisconsin. Is my spouse required to file a Wisconsin return and pay Wisconsin taxes on that income?
  4. I am in the military and stationed outside Wisconsin. I remain a Wisconsin resident. My spouse, who is also from Wisconsin, is living with me outside Wisconsin. My spouse is not in the military but is earning income outside Wisconsin. Is my spouse still considered a Wisconsin resident? Is my spouse still required to pay taxes to Wisconsin on income earned outside Wisconsin?
  5. I am living in another state while in the military. I maintain my Wisconsin residency, but my personal residence during the tax year is located outside Wisconsin. Can I use the rent I paid on my personal residence located outside Wisconsin to calculate the school property tax credit on my Wisconsin income tax return?
  6. I am in the military and stationed outside the United States. Can I claim the armed forces member credit?
  7. I am a nonresident servicemember stationed in Wisconsin. My spouse and I own rental property in Wisconsin and are required to file a Wisconsin return. We wish to file a Form 1NPR using the married filing joint status. Does any of my military compensation get reported on the 1NPR?
  8. Does Wisconsin exempt any portion of military pay?

  1. I am in the military and stationed outside Wisconsin. If I file the correct military papers to change my state of residency, have I legally changed my state of residency from Wisconsin to the other state?

    No. To change your legal residence (domicile) from Wisconsin to another state, you must take actions to show that you intend to abandon your Wisconsin domicile, you must be physically present in your new state of domicile, and you must take actions to show that you intend to establish a new domicile in the new state. If any of these three criteria are not met, you are considered a Wisconsin resident, regardless of where you are stationed. Caution: If you are unclear about your situation, you should contact the department for further clarification before you change your state of residency with the military.

  2. I am a Wisconsin resident in the military. My spouse is not a Wisconsin resident and has no Wisconsin income. Which tax return do I file for Wisconsin?

    In this situation you have two options. You can file a Wisconsin Form 1 with a filing status of married filing separately. Under this option, you show only your income on the Form 1. However, your tax may be higher than if you filed as married filing jointly.

    The other option is to file a Wisconsin Form 1NPR, which is the income tax form for part-year residents and nonresidents. Under this option you can file a joint return with your spouse even though your spouse is a nonresident. If you use Form 1NPR, your spouse's income will not be taxed. However, your spouse's income is used in calculating the percentage of your Wisconsin income to the combined federal income of you and your spouse. This percentage is then used to determine your Wisconsin tax. See the Wisconsin Form 1NPR Instructions for more information.

    You should compute your tax liability under both options and then file under the option that is most advantageous to you.

  3. I am in the military and I am temporarily stationed in Wisconsin. My spouse and I are not Wisconsin residents. My spouse earned wages working in Wisconsin. Is my spouse required to file a Wisconsin return and pay Wisconsin taxes on that income?

    Prior to January 1, 2009, if your spouse had Wisconsin wages of $2,000 or more and your spouse was not a resident of a state with which Wisconsin had a reciprocity agreement, your spouse was required to file a nonresident tax return, Wisconsin Form 1NPR, and pay tax on the income earned in Wisconsin. For more information on reciprocity, see Wisconsin Publication 121, Reciprocity. Also see the Form 1NPR Instructions.

    The federal Military Spouses Residency Relief Act, signed into law on Veterans Day in 2009, allows a military service member's spouse to keep his or her tax domicile throughout the marriage, so long as the spouse is absent from the state solely to be with the service member serving in compliance with military orders. A nonresident spouse's income from working in Wisconsin will not be taxable to Wisconsin as long as the nonresident spouse is in Wisconsin solely to be with the service member who is serving in compliance with military orders.

  4. I am in the military and stationed outside Wisconsin. I remain a Wisconsin resident. My spouse, who is also from Wisconsin, is living with me outside Wisconsin. My spouse is not in the military but is earning income outside Wisconsin. Is my spouse still considered a Wisconsin resident? Is my spouse still required to pay taxes to Wisconsin on income earned outside Wisconsin?

    Your spouse is a Wisconsin resident unless your spouse has taken steps to change his/her domicile to another state. If your spouse meets the following three requirements, he/she would not be considered a Wisconsin resident and would not be required to file Wisconsin income tax returns. Your spouse must have taken actions to abandon his/her Wisconsin domicile, be physically present in his/her new state of residence, and have taken actions to establish a new domicile in his/her new state of residence. If your spouse does not meet all three of these requirements, he/she would still be considered a Wisconsin resident and would be required to file Wisconsin income tax returns. A Wisconsin resident's world-wide income is reportable to Wisconsin.

    Note: If your spouse is a Wisconsin resident and is living in another state solely to be with you (the service member) and you are there in compliance with military orders, wages earned by the spouse are not taxable to the other state. The wages are taxable only to Wisconsin.

  5. I am living in another state while in the military. I maintain my Wisconsin residency, but my personal residence during the tax year is located outside Wisconsin. Can I use the rent I paid on my personal residence located outside Wisconsin to calculate the school property tax credit on my Wisconsin income tax return?

    Yes, you can use the rent you paid on your principal home, even if it is located outside Wisconsin, to calculate the school property tax credit. However, you may not use rent paid for housing that is exempt from property tax, such as military housing or certain university-owned housing.

  6. I am in the military and stationed outside the United States. Can I claim the armed forces member credit?

    A member of the U.S. armed forces on active duty who receives military pay from the federal government while stationed outside the United States may qualify for the armed forces member credit. The tax credit equals the amount of military pay for services performed while stationed outside the United States, up to a maximum credit of $300. For a married couple filing a joint return, if both spouses qualify for the credit, each may claim up to $300. Part-year residents and nonresidents of Wisconsin are not eligible for the credit.

    Members of the National Guard ordered to active duty in the U.S. armed forces are eligible for this credit provided they were stationed outside the United States and received their military pay from the federal government.

    Note: You cannot claim the armed forces member credit if you were a member of the Reserves or National Guard and claimed an exclusion from income for your active duty military pay. The exclusion applies to certain members of the Reserves or National Guard who were called into active federal service under 10 USC 12302(a) or 10 USC 12304 or into special state service under 32 USC 502(f).

  7. I am a nonresident servicemember stationed in Wisconsin. My spouse and I own rental property in Wisconsin and are required to file a Wisconsin return. We wish to file a Form 1NPR using the married filing joint status. Does any of my military compensation get reported on the 1NPR?

    No. The federal Servicemembers Civil Relief Act (Public Law 108-189) precludes any tax jurisdiction from using military compensation of a nonresident servicemember to increase the tax liability imposed on other income earned by the nonresident servicemember or spouse subject to tax by the jurisdiction. This means that not only do you not report the nonresident servicemember military income in the Wisconsin column (column B, line 1) of the Form 1NPR, but you also do not include it in the Federal column (column A, line 1). The service member should fill in "09" in the "Special Conditions" box on Form 1NPR and write the amount of military compensation received on the line next to the box.

  8. Does Wisconsin exempt any portion of military pay?

    Military pay that is exempt for federal tax purposes is also exempt for Wisconsin. For example, military pay that qualifies for the federal combat pay exclusion is also exempt for Wisconsin tax purposes.

    In addition, if you were a member of the Reserves or National Guard and served on active duty, you may subtract any military pay that is included on your W-2 and was:

CAUTION: The subtraction only applies to members of the Reserves or National Guard who are called into active federal service under 10 USC 12302(a) or 10 USC 12304 or into special state service under 32 USC 502(f). However, it does not apply to pay that members of the Reserves and National Guard receive for their weekend or two-week annual training. It also does not apply to a person who is serving on active duty or full-time duty in the active guard reserve (AGR) program.

FOR MORE INFORMATION PLEASE CONTACT:

WISCONSIN DEPARTMENT OF REVENUE
Customer Service Bureau
PO Box 8949
Madison, WI 53708-8949
Phone: (608) 266-2486
Fax: (608) 267-1030
Email: DORIncome@revenue.wi.gov

Page last updated November 20, 2013