A Message to Persons Preparing 2010 Wisconsin Income Tax Returns

What's New!

New for 2010

Section 179 Expense for Farmers The increased sec.179 expense deduction for farmers has expired. The maximum sec. 179 expense that may be claimed by farmers is $25,000. (See Schedule I which is available from our Internet web site.)

Farmland Tax Relief Credit The farmland tax relief credit is repealed.

College Savings Program (EdVest and "tomorrow's scholar"). The child no longer has to be claimed as a dependent in order for the parent to claim the subtraction for contributions to the college savings account. Also, in the case of divorced parents, each former spouse may claim a maximum of $1,500 for their child, unless the divorce decree specifies a different division of the $3,000 maximum.

Late Filing Fee The late filing fee is increased to $50.

Homestead Credit Indexing The maximum household income is $24,680 (previously $24,500) and the maximum property taxes that may be used for the credit is $1,460 (previously $1,450). The maximum credit for 2010 is $1,168 (previously $1,160).

Election Campaign Fund The account that may be designated to the election campaign fund (including the democracy trust fund) is increased from $1 to $3. The amount designated is for the use of eligible candidates for state office and eligible candidates for justice of the Wisconsin Supreme Court. Candidates for the Supreme Court are funded through the democracy trust fund.

New Business Credits There are five new business credits for 2010.

Postsecondary education credit
Water consumption credit
Jobs tax credit
Woody biomass harvesting and processing credit
Food processing and food warehouse investment credit

Reciprocity The reciprocity agreement with Minnesota has been terminated. For a Wisconsin resident working in Minnesota, Minnesota tax (instead of Wisconsin) was withheld from the Minnesota wages, effective January 1, 2010. The Wisconsin resident may be required to file both Minnesota and Wisconsin income tax returns for 2010. If the Wisconsin resident pays tax to both Minnesota and Wisconsin, a credit for tax paid to Minnesota may be allowed on the Wisconsin income tax return (Form 1).

General Information - Electronic Returns

Please file electronically whenever possible.
New this year to electronic filing is Schedule PE (Postsecondary Education Credit), Schedule WC (Water Consumption Credit), Schedule JT (Jobs Tax Credit), Schedule WB (Woody Biomass Harvesting and Processing Credit), Schedule FW (Food Processing Plant and Food Warehouse Investment Credit) and Schedule FC-A (Farmland Preservation Credit).
Send the Wisconsin Form W-RA with supporting documentation for Homestead, Schedules CC, DC, DM, DMK-1, EC, ED, FC, FC-A, FP, HR IE, JT, MI, MP, OS, TC, VC, and WB, Forms 1X, SPL-01 and W-222, and Veterans & Surviving Spouses Property Tax Credit. Anyone claiming the Homestead Credit should use P.O. Box 8977, Madison, WI 53708-8977 for all required attachments. All other Forms W-RA should be mailed to P.O. Box 8967, Madison, WI 53708-8967.
Signature documents are not required.
Wisconsin individual income tax payments can be made using Electronic Funds Transfer (EFT) for returns filed electronically, similar to the IRS. Returns for 2010 can be filed before April 18th with a payment settlement date requested for as late as April 18th.
Taxpayers should use Form EPV for payments due on electronic returns and Form TPV for payments due on TeleFile returns.
Wisconsin participates in the state only initiative for fed/state e-file. Visit our web site for details.
Wisconsin Free File offers online, fill-in electronic forms for filing certain WI tax returns electronically for free.
Remember to verify that Taxpayer address and Bank Account (direct deposit and EFT payments) information is accurate before submitting the electronic return.

General Information - Paper Returns

For faster refunds, file electronically. Electronic data is processed daily, bypassing the queue of paper returns waiting for data capture.
Do not staple Forms 1, 1-NPR, WI-Z, 1A, 2 and 1X. Simply enclose them in the order listed below in the envelope. Always Staple Schedule H and any attachments.
Make sure you enter your full name(s), social security number(s) and address including your county, tax and school district information. Please double check that your social security number is correct.
Only use paper forms with preprinted barcodes. The department's scanning technology can capture information more accurately when “approved” forms are used. Use a minimum font of 12 for best results. Be sure all entries are legible and made using black ink only. Always print the name and address in legible capital letters when submitting a handwritten form.
The department must approve Wisconsin tax forms generated by software. If you purchase software, your vendor can verify that its form design has been approved. If you develop your own software, obtain approval for all substitute forms created within your application. For information about form specifications, go to Guidelines for Reproduced and Substitute Tax Forms. To submit forms for approval, contact Don Holec at P.O. Box 8903, Madison, WI 53708-8903. Private delivery services use 2135 Rimrock Rd, Madison, WI 53713.
Include all necessary attachments for Credit Claims. Missing documentation delays processing.
Mail returns to the proper post office box. Addresses are printed near the signature line on the forms.

Assembling Paper Returns

Returns are processed slower when not assembled in the proper order. Assemble Wisconsin income tax returns in this order:

Special notes or correspondence about the processing of the return.
Remittances (checks and money orders) paper clipped where indicated on the front of the form.
A complete Form 1, 1A, WI-Z, 1-NPR, 1X, or Form 2. Be sure the pages are in the proper sequence. Please do not staple your return.
Schedule H or H-EZ (Homestead Credit) or Schedule FC or FC-A (Farmland Preservation Credit) with supporting documentation behind the schedule. Returns with missing or incomplete documentation will be held until we receive all of the necessary information.
All other Wisconsin schedules in alphabetic order: Schedule CR, DC, DI, DM, EB, EC, ED, FP, FT, FW, HR, I, IE, JT, MI, MS, MT, OS, PE, R, R-1, R-2, RS, T, TC, U, VC, WB, WC, WD, 2440W.
Legible withholding tax statements (Forms W-2, W2-G, K-1, and/or 1099). If the carbon state copy of the withholding tax statement is not legible, please attach a photocopy of the original page of the statement.
A complete copy of the Federal Return with accompanying schedules must follow when Form 1 or 1-NPR is filed. For federal electronic filers, enclose copies of the complete federal form and all the supporting documents that the IRS requires and write "Substitute Form 1040" on top of the first page of the 1040. Because Wisconsin is participating in the state only option, you can electronically submit Wisconsin returns separately from the electronically filed federal return.
Copies of other state tax returns and wage statements when claiming taxes paid to other states.
A copy of the federal extension of time to file, when applicable.
Divorce decree and/or Injured Spouse Claim and Allocation federal Form 8379.

Questions?

Direct questions to Customer Service at (608) 266-2772.

Last updated November 30, 2010