Wis. Admin. Code § Tax 14.02 — Qualification for credit

Tax 14.02(1) (1) Purpose. This section clarifies the requirements to qualify for the Wisconsin homestead credit.

Tax 14.02(2) (2) Two members of a household meeting qualifications.

Tax 14.02(2)(a) (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.

Tax 14.02(2)(b) (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.”

Tax 14.02(3) (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.

Tax 14.02(4) (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.

Tax 14.02(5) (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.

Tax 14.02(6) (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.

Tax 14.02(7) (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.

Tax 14.02(8) (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.

Tax 14.02(9) (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.

Tax 14.02(10) (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:

Tax 14.02(10)(a) (a) The person is improperly claimed as a dependent on a federal income tax return.

Tax 14.02(10)(b) (b) The person qualifies to be claimed as a dependent on a federal income tax return but is not claimed.

Tax 14.02(10)(c) (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.

Tax 14.02(11) (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.