Individual Income Tax Retired Persons

  1. Are my retirement benefits taxable?

  2. Are my military or uniformed services retirement benefits taxable?

  3. If I live in another state for a portion of the year, how much of my income is taxable by Wisconsin?

  4. How much of my social security benefits are taxable by Wisconsin?

  5. As a retired person, do I qualify for homestead credit?

  6. If I received taxable non-wage income, do I need to make estimated tax payments?

  7. The federal government allows for an increased standard deduction for taxpayers age 65 or older. Does Wisconsin allow for any type of benefit for older or retired taxpayers?

  8. Does Wisconsin allow a subtraction from income on Form 1 for the amount that I pay for health insurance?

  9. What is the Wisconsin retirement income exclusion?

  1. Are my retirement benefits taxable?

    Exceptions to the taxation of retirement income described above are as follows:

    Note: Payments you receive from a nonqualified pension or annuity or a nonqualified deferred compensation plan are taxable by Wisconsin when received by a Wisconsin resident. Such payments may be taxable or may be exempt when received by a nonresident of Wisconsin. For more information on this issue, see Wisconsin Publication 106,Wisconsin Tax Information for Retirees, and Wisconsin Publication 126, How Your Retirements Benefits are Taxed.

  2. Are my military or uniformed services retirement benefits taxable?

    Payments you receive from the following are not taxable for Wisconsin:

  3. If I live in another state for a portion of the year, how much of my income is taxable by Wisconsin?

    It depends on whether or not you remained a legal resident of Wisconsin for the entire year. During the time that you are a legal Wisconsin resident, Wisconsin taxes your income from all sources. During the time that you aren't a legal Wisconsin resident, Wisconsin taxes only your income from Wisconsin sources.

    You are considered a part-year resident only if you were domiciled in Wisconsin for part of the year and in another state for the rest of the year.

    Your domicile is your true, fixed, and permanent home where you intend to remain permanently and indefinitely and to which, whenever absent, you intend to return. It is often referred to as "legal residence." You can be physically present or residing in one state but maintain a domicile in another. You can have only one domicile at a time. For more information, see Wisconsin Publication 122, Tax Information for Part-Year Residents and Nonresidents of Wisconsin for 2018.

  4. How much of my social security benefits are taxable by Wisconsin?

    Wisconsin does not tax social security benefits.

  5. As a retired person, do I qualify for homestead credit?

    Retirees age 62 years of age or older who are full-year legal residents of Wisconsin may qualify for homestead credit if they meet certain conditions. One of the qualifications is that your total household income (both taxable and nontaxable income) must be less than $24,680 for 2018. Retirees under age 62 may qualify if they are disabled or have earned income. For more information about the homestead credit, see the Wisconsin Schedule H Instructions.

  6. If I received taxable non-wage income, do I need to make estimated tax payments?

    If you have income from which Wisconsin tax is not withheld, such as interest income or pension or annuity income, you may be required to prepay your tax in installments. Generally, you must pay estimated tax if your tax return will show a balance due of $500 or more. For more information regarding estimated tax payments and how to make them, see the Wisconsin Form 1-ES instructions. You may be subject to an underpayment interest charge if you do not make required payments of estimated tax.

  7. The federal government allows for an increased standard deduction for taxpayers age 65 or older. Does Wisconsin allow for any type of benefit for older or retired taxpayers?

    Yes. Persons age 65 or older on December 31, 2018, are allowed a $700 personal exemption for themselves, and an additional personal exemption deduction of $250.

    If you are married filing a joint return and both you and your spouse were age 65 or older on December 31, 2018, you are allowed an additional exemption deduction of $250 for yourself and $250 for your spouse.

  8. Does Wisconsin allow a subtraction from income on Form 1 for the amount that I pay for health insurance?

    You may claim a subtraction from income for the amount you paid for medical care insurance in 2018. The amount allowed depends on whether you were employed, unemployed or self-employed.

    For more information on the subtraction from income for medical care insurance premiums paid in 2018, see the Wisconsin Form 1 instructions.

  9. What is the Wisconsin retirement income exclusion?

    Individuals who receive income from a qualified retirement plan or an individual retirement account (IRA) are allowed to subtract up to $5,000 of such retirement benefits when computing their Wisconsin income tax.

    To qualify for the subtraction, the individual must be at least 65 years of age before the close of the taxable year for which the subtraction is being claimed, and meet the following income limitations for that year:

    The subtraction does not apply to retirement benefits that are otherwise exempt from Wisconsin income tax. For example, an individual is receiving military retirement benefits that are exempt from Wisconsin income tax. The individual may not claim the $5,000 subtraction based on the military retirement benefits.

 

FOR MORE INFORMATION PLEASE CONTACT:

MS 5-77
WISCONSIN DEPARTMENT OF REVENUE
Customer Service Bureau
PO Box 8949
Madison, WI 53708-8949
Phone: (608) 266-2486
Fax: (608) 267-1030
Email additional questions to DORIncome@wisconsin.gov

​January 02, 2019