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.

The bill creates a new statute, 71.07 (9e) (ar), which specifies the percentage of the federal basic earned income credit that a qualifying individual can claim based on the number of qualifying children they have. Additionally, it amends the existing statute 71.07 (9e) (b) to clarify that the EITC credit is not available to married persons filing separately, except for those living apart and treated as single under federal law. This legislative change aims to provide financial relief to individuals facing domestic abuse, ensuring they have access to tax credits that can support their economic stability.

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