For the latest news and updates on Wisconsin state and local tax
April 1, 2024
Wisconsin Increases Gross Income Threshold for Pass-Through Withholding Reporting Requirement
Authored by: Courtney Easterday, MS and Kiana McGowan,CPA, MBA
On March 22, 2024, the Wisconsin Department of Revenue released its updated “Pass-Through Withholding and Composite Returns Fact Sheet,” which increases the gross income threshold for non-residents. Non-resident individuals with at least $2,000 of gross income from Wisconsin sources are subject to income tax filing requirements in the state. Previously, the non-resident filing threshold was $1,000. For Pass-through entities, a non-resident owner may file Form PW-2 to request an exemption from withholding at the PTE level, which would now be considered automatically exempt if the owner’s gross income is $2,000 or less.
For more information on Wisconsin pass-through withholding and composite requirements, please review Fact Sheet 1117 from the Department.
If you have questions about non-resident withholding requirements, please reach out to a member of the Withum SALT Team.
February 12, 2024
Wisconsin Updates R&D Credit Guidance Including Increase in Refundable Portion
Authored by: Kiana McGowan, CPA, MBA and Jonathan Weinberg, JD, LLM, Principal
The Wisconsin DOR issued an updated Publication 131 reflecting their recent legislation change regarding the state’s Research and Development (R&D) credit. The DOR increased the refundable portion of the state’s R&D credit from 15% to 25% for tax years beginning on or after January 1, 2024. Individuals and corporations are eligible to claim the R&D credit and refundable portion. Partnerships, LLCs, and S-corporations would compute the amount of the R&D credit based on their eligible research expenses and may provide any refundable portion available to their owners based on their respective ownership interests.
For additional information on eligibility and how to claim this Wisconsin R&D credit refund, please see Refundable Portion of Research Credit FAQs.
If you have questions about State R&D credits, please reach out to a member of the Withum SALT Team.
September 7, 2023
Wisconsin Sales & Use Tax Discount Amendment
Authored by: Jessie Racioppi and Jonathan Weinberg, JD, LLM, Principal
Wisconsin Bulletin No. 222 summarizes the state’s recently enacted changes to the retailer’s discount allowance. Wisconsin allows retailers to keep a portion of the sales tax collected on a timely filed Wisconsin sales and use tax return. Pursuant to Wis. Act 19, effective for sales tax returns due on or after October 1, 2023, the retailer’s discount increases from 0.5% to 0.75%. Additionally, the total allowable discount that may be retained on a sales and use tax return increases from $1,000 to $8,000.
For more details on Wisconsin’s changes to the Vendor Discount, please see Wisconsin Tax Bulletin 222, July 2023.
If you have questions about how sales taxes affect your business, please contact a member of the Withum SALT Team.
December 9, 2022
Wisconsin Deadline for Unclaimed Property Voluntary Disclosure Agreements is Rapidly Approaching
Authored by: Breea Boylan, MSA and Courtney Easterday, MSA
The Wisconsin Department of Revenue created a voluntary disclosure agreement program for holders of unclaimed property, including:
- Individuals
- Businesses
- Organizations (Including Not-for-Profit Entities)
- Governmental Units
Unclaimed property holders have until February 28, 2023 to initiate an agreement with the Department. The program will allow holders of unclaimed property, such as uncashed payroll checks and unclaimed refunds to escheat the unclaimed property to the state without penalties. Furthermore the program requires unclaimed property holders to:
- Make a bona fide effort to locate unclaimed property owners within 30 days of entering into the agreement for unclaimed property worth $50 or more;
- Continue to report and deliver unclaimed property for the next four annual reporting periods; and
- Electronically file unclaimed property reports and remit payment within 120 days of entering into the agreement.
More information can be found at the Wisconsin Tap Revenue Website.
If you have questions about whether your business has unclaimed property issues, please contact a member of the Withum SALT Team.
July 22, 2021
Tax Changes of Wisconsin Biennial Budget Bill
On July 8, 2021, Wisconsin Governor Tony Evers signed the 2021-2023 biennial budget bill. Below is a summary of tax changes included on the budget bill.
Corporate Income Tax
- For tax years beginning on or after December 31, 2020, up to 15% (increased from 10%) of the Wisconsin research expense credit is refundable.
Personal income tax changes.
- Effective for taxable years beginning after December 31, 2020, the personal income tax rate is reduced from 6.27% to 5.3% for taxpayers in the applicable tax brackets.
- For taxable years beginning after December 31, 2021, a Wisconsin resident may claim as a credit against the personal income tax an amount equal to 50% of the federal child and dependent care tax credit claimed on his or her federal income tax return for the taxable year.
- For tax years beginning on or after December 31, 2020, up to 15% (increased from 10%) of the Wisconsin research expense credit is refundable.
Partnership Tax
- For taxable years beginning after December 31, 2020, partnerships, limited liability companies, and tax-option S corporations may elect to claim the jobs, enterprise zone, and business development tax credits at the entity level, if the credit results from a contract entered into with the Wisconsin Economic Development Corporation before December 22, 2017. If a partnership, limited liability company, or tax-option S corporation elects to claim the credit, the partners, members, and shareholders cannot claim the same credit.
March 23, 2021
Wisconsin Update on Extension of Filing Deadline
The Wisconsin Department of Revenue has announced that 2020 state individual income tax return filing and payment due dates are extended to May 17, 2021, in conformity with the federal income tax filing and payment due date automatic extension announced by the IRS on March 17. Wisconsin law provides for an extension of time and waiver of interest and penalties when the IRS extends filing deadlines during a presidentially-declared disaster. Individual taxpayers do not have to file any extension forms to be eligible for this new due date. No interest or penalties will accrue during the period of April 15, 2021 to May 17, 2021; interest and late filing fees will apply beginning May 18, 2021. No underpayment interest will apply for failure to make quarterly estimated individual income tax payments for the 2020 tax year. This relief does not extend to 2021 estimated tax payments for individuals, the first payment of which is due April 15, 2021. ( 2020 Wisconsin Individual Income Tax Return and Payment Deadline Extended to May 17, 2021, Wis. Dept. Rev., 03/19/2021 .)
April 1, 2020
Individual and Corporate Filing Deadline
The individual income and corporate tax return filing and payment deadline has been extended to July 15, 2020.
More on Taxes and the Coronavirus Pandemic.
Disclaimer: Please note this is the information that is readily available at this time, it is subject to change so please consult your Withum tax advisor.
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The State and Local Tax (SALT) laws vary from state to state and are constantly changing. Reach out to Withum’s SALT Team for guidance on how to navigate your state’s local tax laws.
