Assembly Bill 20 proposes amendments to the Wisconsin earned income tax credit (EITC) regulations, specifically allowing certain married individuals to claim the credit when filing a separate return. Currently, married claimants must file jointly to qualify for both the Wisconsin and federal EITCs. 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, encompassing various forms of physical harm and threats, and establishes that the credit amount will be based on the federal EITC eligibility as if the individual were unmarried.

Additionally, the bill amends existing law by removing the restriction that prohibits married persons from claiming the credit unless they are treated as single under specific federal tax provisions. The new language clarifies that married individuals living apart due to domestic abuse can receive the credit, with specific percentages based on the number of qualifying children they have. This legislative change aims to provide financial relief to those affected by domestic abuse, ensuring they have access to the earned income tax credit even when filing separately.

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