2013 Wisconsin Act 20 provides a subtraction from federal adjusted gross income when completing the Wisconsin income tax return for all income received by an individual who:
- Is a member of the U.S. Armed Forces at death, and
- Dies while in active service in a combat zone, or at any place from wounds, disease, or injury incurred while in active service in a combat zone.
The subtraction applies to:
- The tax year death occurred, and
- The preceding tax year if the individual has not filed a return for that year.
2013 Wisconsin Act 20 is effective for taxable years that begin after December 31, 2012.
If a member of the Armed Forces dies, a surviving spouse or personal representative may handle duties such as filing any tax returns. A personal representative can be an executor, administrator, or anyone who is in charge of the decedent's assets.
Joint returns. Only the decedent's part of the joint income is eligible for the subtraction.
How to claim the subtraction. The personal representative should take the following steps:
- File the decedent's tax return on Wisconsin Form 1.
- Claim a subtraction for the decedent's income on line 11 of Form 1. For 2013 returns, enter code number 31 when claiming the subtraction.
Enclosures with the return. Enclose a copy of the decedent's federal Form 1040, all Forms W-2, and the certification from the federal Department of Defense (DD Form 1300,
Report of Casualty) with the Wisconsin Form 1.
August 15, 2013