Tax Benefits for Midwestern Disaster Areas

Many Wisconsin residents were affected by the severe flooding that occurred in Wisconsin in 2008. Certain areas of Wisconsin were declared disaster areas by the President during the period beginning on May 20, 2008, and ending on
July 31, 2008.

The federal Internal Revenue Service (IRS) has developed a publication which explains the federal tax benefits available to taxpayers in the Midwestern disaster area. Publication 4492-B, Information for Affected Taxpayers in the Midwestern Disaster Area, is available from the IRS website at: or by calling the IRS at (800) 829-3676.

The provisions in this publication only apply for federal income tax purposes. They do not apply for Wisconsin at this time. An exception to this is that any federal earned income credit based on the election to use 2007 earned income to figure the 2008 federal earned income credit is allowed when computing the Wisconsin earned income credit.

The Wisconsin Legislature is currently in session and may adopt some of the provisions for Wisconsin tax purposes later this year.

February 12, 2009