(1) PURPOSE. This
section clarifies the requirements to qualify for the Wisconsin homestead
credit.
(2) TWO MEMBERS OF A
HOUSEHOLD MEETING QUALIFICATIONS.
(a) Under s.
71.53(1) (c),
Stats., only one member of a household existing at the end of a calendar year
may claim a homestead credit for that year. Thus, if a husband and wife reside
in one homestead at the end of a calendar year and both qualify for the
homestead credit, only one of them may claim the credit.
(b) Section
71.52(1),
Stats., provides:
". . . When 2 individuals of a household are able to
meet the qualifications for a claimant, they may determine between them as to
who the claimant is. If they are unable to agree, the matter shall be referred
to the secretary of revenue and the secretary's decision is final."
Note: Requests for a determination under par. (b)
should be addressed to Wisconsin Department of Revenue, P.O. Box 8906, Madison,
WI 53708-8906.
(3)
MORE THAN ONE HOUSEHOLD IN A HOMESTEAD. Under s.
71.53(1) (c),
Stats., one claimant from each household may claim a homestead credit whether
the household is the sole occupant of a homestead or whether several households
share the homestead.
(4) HOUSEHOLD
OCCUPYING MORE THAN ONE HOMESTEAD IN A YEAR. Section
71.52(7),
Stats., provides
". . . If a household owns and occupies 2 or more
homesteads in the same calendar year, property taxes accrued is the sum of the
prorated property taxes accrued attributable to the household for each of such
homesteads. If the household owns and occupies the homestead for part of the
calendar year and rents a homestead for part of the calendar year, it may
include both the proration of taxes on the homestead owned and rent
constituting property taxes accrued with respect to the months the homestead is
rented in computing the amount of the claim . . ." Thus, if a
household owns and occupies a homestead in Wisconsin for a portion of the year
and then establishes a homestead in a rented dwelling in Wisconsin for the
remainder of the calendar year, property taxes accrued shall be the prorated
portion of property taxes attributable to the months the household resided in
the owned homestead and rent constituting property taxes accrued shall be 25%
of the gross rent paid for the remainder of the year, or 20% if heat was
included in the cost of the rent.
Example: A household owns and occupies a homestead
in Wisconsin from January 1 to April 30, and then establishes a homestead in a
rented dwelling in Wisconsin with no heat furnished for the remainder of the
calendar year. The annual property taxes accrued on the owned homestead equaled
$1,800 and gross rent paid for the last 8 months of the year totaled $2,800.
The property taxes and rent allowable for homestead credit
purposes equals $1,300, consisting of four-twelfths of the $1,800 of property
taxes accrued, or $600, plus 25% of the gross rent of $2,800, or $700 of rent
constituting property taxes accrued.
(5) HOUSEHOLD OCCUPYING MORE THAN ONE
DWELLING AT THE SAME TIME. Under s.
71.52(2),
Stats., "gross rent" is rental paid for the right of occupancy of a homestead,
and under s.
71.52(7),
Stats., "property taxes accrued" are property taxes levied on the homestead of
a household. Since a homestead is the principal dwelling of a household, if a
household pays gross rent or property taxes accrued on 2 dwellings occupied
concurrently by the household, a claimant may claim only the rent or property
taxes pertaining to the principal dwelling.
Example: Examples of 2 dwellings occupied
concurrently include:
1) A claimant
maintains a permanent homestead and lives part of the year at a summer cottage
which he or she owns.
2) A claimant
moves from one apartment to another and pays rent for both apartments for a
two-month period.
(6)
TEMPORARY ABSENCE FROM HOMESTEAD. A claimant who is temporarily absent from a
homestead and who does not establish a homestead elsewhere is considered to
reside in the homestead for the period of the temporary absence.
Example:
1) A person is in the hospital at the end of
the calendar year and it is expected that the absence is temporary. The person
is considered to reside in the homestead from which the person is temporarily
absent.
2) A person seasonally
employed away from the homestead is treated similarly as in example
1.
(7) DOMICILE OF ARMED
FORCES MEMBER. A member of the United States armed forces stationed outside
Wisconsin who retains a Wisconsin domicile and maintains a Wisconsin homestead
shall be eligible for a homestead credit if otherwise qualified, even though
the member does not occupy the homestead during the year to which the claim
relates or at the time of filing the claim. The absence from the Wisconsin
homestead is considered to be a temporary absence.
(8) CITIZENS OF OTHER COUNTRIES. Under s.
71.52(1),
Stats., a citizen of a country other than the United States is not eligible for
a homestead credit unless the person is a resident alien for federal tax
purposes who does not intend to return to his or her homeland.
Example: A citizen of another country is in the
United States for educational purposes and is required to leave the United
States when the educational program is completed. This person is not eligible
for a homestead credit.
(9)
PERSON CLAIMING A FARMLAND PRESERVATION CREDIT. Under s.
71.58(1) (b),
Stats., a person is not eligible for a homestead credit if the person qualifies
for and claims a farmland preservation credit for the same year to which a
homestead credit claim relates. However, if a person who has claimed a farmland
preservation credit withdraws the claim, the person is no longer ineligible to
receive a homestead credit because of the filing of a farmland preservation
credit claim. Withdrawal of the farmland preservation credit claim shall be in
writing. A homestead credit claim filed after the withdrawal of a farmland
preservation credit claim shall be filed by the normal deadline for filing a
homestead credit claim or the department shall disallow the claim.
Example: A 2017 homestead credit claim filed after
the withdrawal of a 2017 farmland preservation credit claim must be filed on or
before April 15, 2022.
Note: A written withdrawal of a farmland
preservation credit claim should be mailed to Wisconsin Department of Revenue,
P.O. Box 8906, Madison, WI 53708-8906.
(10) PERSON CLAIMED AS A DEPENDENT. Under s.
71.53(2) (d),
Stats., a person does not qualify for a homestead credit if the person is
claimed as a dependent for federal income tax purposes during the year to which
the claim relates, unless the person claiming a homestead credit is 62 years of
age or older as of December 31 of the claim year. However, a person is not
disqualified if any of the following apply:
(a) The person is improperly claimed as a
dependent on a federal income tax return.
(b) The person qualifies to be claimed as a
dependent on a federal income tax return but is not claimed.
(c) The person is properly claimed as a
dependent on a federal income tax return but on a later amended federal income
tax return is not claimed.
(11) DECEASED CLAIMANT. Under s.
71.53(1) (b),
Stats., a person must be alive at the time a homestead credit claim is filed. A
claim completed and signed but not filed until after a person's death shall be
denied.
