Senate Bill 20 proposes an amendment to Wisconsin's earned income tax credit (EITC) regulations, allowing certain married individuals to claim the credit when filing a separate tax return. Currently, married claimants must file jointly to qualify for both the Wisconsin EITC and the federal EITC. The bill introduces a provision that permits a married person to file separately and claim the Wisconsin EITC if they live apart from their spouse and cannot file jointly due to domestic abuse. The bill defines domestic abuse broadly, including physical harm, sexual assault, and actions that instill fear of such conduct.

Additionally, the bill specifies that the amount of the Wisconsin EITC for eligible individuals will be based on the federal basic earned income credit as if they were considered unmarried. The new legal language created under section 71.07 (9e) (ar) outlines the percentages of the federal credit that can be claimed based on the number of qualifying children. The existing statute at 71.07 (9e) (b) is amended to clarify that the credit is not available to married persons filing separately, except for those living apart under the specified conditions.

Statutes affected:
Bill Text: 71.07(9e)(b), 71.07