1. What are rental assistance programs?
   
   
2. Are rental assistance payments received by the landlord included in the landlord's gross income?
   
   
3. Are rental assistance payments received by the tenant included in the tenant's gross income?
   
   
4. Are rental assistance payments received by the tenant included in the tenant's household income for purposes of the homestead credit?
   
   
5. May rental assistance payments be claimed as rent paid on line 4a, 4b, or 4c of the rent certificate?
   
   

1. What are rental assistance programs?

   Wisconsin has a variety of rental assistance programs that are administered by the state of Wisconsin, local governments, and local community organizations. In general, these programs pay to a landlord a portion of a tenant's outstanding rent if the tenant is unable to pay their rent. For more information, see DOA WI Emergency Rental Assistance Program.

2. Are rental assistance payments received by the landlord included in the landlord's gross income?

   If the payments are made directly to the landlord of the property, the landlord must include them in gross income for federal and Wisconsin tax purposes. Exception: A subtraction is allowed for Wisconsin if the rental assistance program is administered by the state of Wisconsin and paid with funds Wisconsin received from the federal Coronavirus Relief Fund authorized under 42 USC 801 (sec. 71.05(1)(h), Wis. Stats.). The Wisconsin subtraction is not allowed if either of the following apply:

   • The program is administered by a local government unit or community organization
   • The state-administered program is not funded by the Coronavirus Relief Fund
     
     
3. Are rental assistance payments received by the tenant included in the tenant's gross income?

   No. Amounts an individual receives from a public welfare fund based upon need are not included in the individual's gross income. For additional information, see the section for Welfare and Other Public Assistance Benefits in federal Publication 525, Taxable and Nontaxable Income.

4. Are rental assistance payments received by the tenant included in the tenant's household income for purposes of the homestead credit?

   Rental assistance payments are not included in an individual's household income for purposes of the homestead credit under sec. Tax 14.03(4)(b)3.e. and (5)(a)3., Wis. Adm. Code. However, if the amount is received directly by the tenant in cash, these amounts must be included in household income (sec. 71.52(6), Wis. Stats.).

5. May rental assistance payments be claimed as rent paid on line 4a, 4b, or 4c of the rent certificate?

   No. The tenant is not considered to have paid rent when it is paid by the government or an entity acting on its behalf.

Applicable Laws and Rules

This document provides statements or interpretations of the following laws and regulations enacted as of December 22, 2023: secs. 71.05 and 71.52, Wis. Stats., sec. Tax 14.03, Wis. Adm. Code, and 42 U.S. Code 801.

Laws enacted and in effect after this date, new administrative rules, and court decisions may change the interpretations in this document. Guidance issued prior to this date, that is contrary to the information in this document is superseded by this document, according to sec. 73.16(2)(a), Wis. Stats.

For income tax questions:

For rental assistance program questions:

Wisconsin Emergency Rental Assistance Program
Phone: 1-833-900-9372
Email: support@wera.help
Website: DOA WI Emergency Rental Assistance Program

The department welcomes your input on our guidance. Submit comments on this guidance document.

Guidance Document Number: 100297

December 22, 2023