Assembly 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 the percentage of the federal basic earned income credit that a qualifying individual can claim based on the number of qualifying children they have. For instance, individuals with one qualifying child can claim 4%, those with two can claim 11%, and those with three or more can claim 34%. The existing law is amended to clarify that the EITC credit is not available to married persons filing separately, except for those living apart due to domestic abuse, who are treated as single under specific IRS guidelines.

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