The Wisconsin Homestead Credit is designed to lessen the impact of property taxes by providing a credit on the Wisconsin state income tax return. The credit is based on property taxes levied in the tax year, and is available to both property owners and renters that meet the following qualifications:
- Occupied and owned or rented a home, apartment, or other dwelling that is subject to Wisconsin property taxes during the tax year.
- A legal resident of Wisconsin for all of the tax year.
- 18 years of age or older on December 31.
- Household income was less than $24,680 for the tax year.
- Meet one of the following conditions:
- Taxpayer (or spouse, if married) have earned income during the year.
- Taxpayer (or spouse, if married) are disabled.
- Taxpayer (or spouse, if married) are 62 years of age or older at the end of tax year.
- Taxpayer cannot be claimed as a dependent for the year on someone else's federal income tax return. (This qualification does not apply if they are 62 years of age or older on December 31.)
- Taxpayer (and spouse, if married) will not claim the farmland preservation credit or the veterans and surviving spouses property tax credit based on property taxes.
- Taxpayer did not live for the entire year in housing that is exempt from property taxes. (Property owned by a municipal housing authority is not considered tax-exempt for homestead credit purposes if the housing authority makes payments in place of property taxes to the city or town in which it is located.)
- Did not live in a nursing home and receive Title XIX medical assistance at the time of filing a claim.
- Not filing a claim on behalf of a person after his or her death.
- Have not received Wisconsin Works (W2) payments of any amount or county relief payments of $400 or more for all 12 months of year. If the taxpayer received any amount of a Wisconsin Works (W2) payment in 2020 or county relief payments of $400 or more for any month in year, property taxes and rent have to be reduced by one-twelfth for each month benefit payments were received.
To complete Schedule H, from the Wisconsin Return menu in TaxSlayer ProWeb select:
- Homestead Tax Credit - Answer Yes to completing the credit.
- Basic Questions - Evaluate and answer all the Yes/No questions as appropriate. Two Yes answers will require additional schedules to be completed:
- Is your homestead located on more than one acre and was not part of a farm? - Schedule 1 will need to be completed if answered Yes.
- Is your homestead used for purposes other than personal or farm use? - Schedule 2 will need to be completed if answered Yes.
- Household Income - The amounts in this menu are pulled from the federal return, but the menu should be examined closely for any amounts not included in the federal return that may need to be added, i.e.:
- Nontaxable scholarships and grants
- Railroad retirement benefits and other nontaxable benefits
- Interest income on US obligations and state and municipal bonds
- Child support and family maintenance payments
- Wisconsin Works (W2), county relief, kinship care, and other cash public assistance (if any amount is entered, Schedule 3 will need to be completed.)
- Disqualified losses
- Nonresident spouse income
- Nontaxable sick pay (Form W-2 Box 12 Code J)
- Partner or shareholder's share of depreciation reported on Schedule K-1
- Vehicle depreciation if using standard mileage to calculate vehicle expenses
- Tax and/or Rent Section - Enter each amount required.
- Property Tax Bill - Enter the property tax bill information. The amount of property tax entered here is the basis for the credit calculation.
- Rent Certificate - If the taxpayer was a renter, enter the rent certificate information.
- Homestead Credit Notes and Attachments Checklist - This menu includes a list of statements that should be examined to see if any apply to this return. Some of the statements may require further information that can be entered in the last menu item.
The State of Wisconsin may assess civil and criminal penalties for fraudulently filing a claim for credit, therefore it is recommended that all questions be reviewed.
Electronic filers will need to file Form W-RA with required attachments, either in paper form or electronically here.
Note: This is a guide to completing Wisconsin Schedule H in TaxSlayer ProWeb. It is not intended as tax advice. The information from the Wisconsin Department of Revenue linked below is both informative and authoritative and should always be consulted when completing Schedule H.