Section Tax 14.02 - Qualification for credit(1) PURPOSE. This section clarifies the requirements to qualify for the Wisconsin homestead credit.(2) TWO MEMBERS OF A HOUSEHOLD MEETING QUALIFICATIONS.(a) Under s. 71.53(1) (c), Stats., only one member of a household existing at the end of a calendar year may claim a homestead credit for that year. Thus, if a husband and wife reside in one homestead at the end of a calendar year and both qualify for the homestead credit, only one of them may claim the credit.(b) Section 71.52(1), Stats., provides: ". . . When 2 individuals of a household are able to meet the qualifications for a claimant, they may determine between them as to who the claimant is. If they are unable to agree, the matter shall be referred to the secretary of revenue and the secretary's decision is final."Note: Requests for a determination under par. (b) should be addressed to Wisconsin Department of Revenue, P.O. Box 8906, Madison, WI 53708-8906.
(3) MORE THAN ONE HOUSEHOLD IN A HOMESTEAD. Under s. 71.53(1) (c), Stats., one claimant from each household may claim a homestead credit whether the household is the sole occupant of a homestead or whether several households share the homestead.(4) HOUSEHOLD OCCUPYING MORE THAN ONE HOMESTEAD IN A YEAR. Section 71.52(7), Stats., provides ". . . If a household owns and occupies 2 or more homesteads in the same calendar year, property taxes accrued is the sum of the prorated property taxes accrued attributable to the household for each of such homesteads. If the household owns and occupies the homestead for part of the calendar year and rents a homestead for part of the calendar year, it may include both the proration of taxes on the homestead owned and rent constituting property taxes accrued with respect to the months the homestead is rented in computing the amount of the claim . . ." Thus, if a household owns and occupies a homestead in Wisconsin for a portion of the year and then establishes a homestead in a rented dwelling in Wisconsin for the remainder of the calendar year, property taxes accrued shall be the prorated portion of property taxes attributable to the months the household resided in the owned homestead and rent constituting property taxes accrued shall be 25% of the gross rent paid for the remainder of the year, or 20% if heat was included in the cost of the rent. Example: A household owns and occupies a homestead in Wisconsin from January 1 to April 30, and then establishes a homestead in a rented dwelling in Wisconsin with no heat furnished for the remainder of the calendar year. The annual property taxes accrued on the owned homestead equaled $1,800 and gross rent paid for the last 8 months of the year totaled $2,800.
The property taxes and rent allowable for homestead credit purposes equals $1,300, consisting of four-twelfths of the $1,800 of property taxes accrued, or $600, plus 25% of the gross rent of $2,800, or $700 of rent constituting property taxes accrued.
(5) HOUSEHOLD OCCUPYING MORE THAN ONE DWELLING AT THE SAME TIME. Under s. 71.52(2), Stats., "gross rent" is rental paid for the right of occupancy of a homestead, and under s. 71.52(7), Stats., "property taxes accrued" are property taxes levied on the homestead of a household. Since a homestead is the principal dwelling of a household, if a household pays gross rent or property taxes accrued on 2 dwellings occupied concurrently by the household, a claimant may claim only the rent or property taxes pertaining to the principal dwelling. Example: Examples of 2 dwellings occupied concurrently include:
1) A claimant maintains a permanent homestead and lives part of the year at a summer cottage which he or she owns.2) A claimant moves from one apartment to another and pays rent for both apartments for a two-month period.(6) TEMPORARY ABSENCE FROM HOMESTEAD. A claimant who is temporarily absent from a homestead and who does not establish a homestead elsewhere is considered to reside in the homestead for the period of the temporary absence. Example:
1) A person is in the hospital at the end of the calendar year and it is expected that the absence is temporary. The person is considered to reside in the homestead from which the person is temporarily absent.2) A person seasonally employed away from the homestead is treated similarly as in example 1.(7) DOMICILE OF ARMED FORCES MEMBER. A member of the United States armed forces stationed outside Wisconsin who retains a Wisconsin domicile and maintains a Wisconsin homestead shall be eligible for a homestead credit if otherwise qualified, even though the member does not occupy the homestead during the year to which the claim relates or at the time of filing the claim. The absence from the Wisconsin homestead is considered to be a temporary absence.(8) CITIZENS OF OTHER COUNTRIES. Under s. 71.52(1), Stats., a citizen of a country other than the United States is not eligible for a homestead credit unless the person is a resident alien for federal tax purposes who does not intend to return to his or her homeland. Example: A citizen of another country is in the United States for educational purposes and is required to leave the United States when the educational program is completed. This person is not eligible for a homestead credit.
(9) PERSON CLAIMING A FARMLAND PRESERVATION CREDIT. Under s. 71.58(1) (b), Stats., a person is not eligible for a homestead credit if the person qualifies for and claims a farmland preservation credit for the same year to which a homestead credit claim relates. However, if a person who has claimed a farmland preservation credit withdraws the claim, the person is no longer ineligible to receive a homestead credit because of the filing of a farmland preservation credit claim. Withdrawal of the farmland preservation credit claim shall be in writing. A homestead credit claim filed after the withdrawal of a farmland preservation credit claim shall be filed by the normal deadline for filing a homestead credit claim or the department shall disallow the claim. Example: A 2017 homestead credit claim filed after the withdrawal of a 2017 farmland preservation credit claim must be filed on or before April 15, 2022.
Note: A written withdrawal of a farmland preservation credit claim should be mailed to Wisconsin Department of Revenue, P.O. Box 8906, Madison, WI 53708-8906.
(10) PERSON CLAIMED AS A DEPENDENT. Under s. 71.53(2) (d), Stats., a person does not qualify for a homestead credit if the person is claimed as a dependent for federal income tax purposes during the year to which the claim relates, unless the person claiming a homestead credit is 62 years of age or older as of December 31 of the claim year. However, a person is not disqualified if any of the following apply: (a) The person is improperly claimed as a dependent on a federal income tax return.(b) The person qualifies to be claimed as a dependent on a federal income tax return but is not claimed.(c) The person is properly claimed as a dependent on a federal income tax return but on a later amended federal income tax return is not claimed.(11) DECEASED CLAIMANT. Under s. 71.53(1) (b), Stats., a person must be alive at the time a homestead credit claim is filed. A claim completed and signed but not filed until after a person's death shall be denied.Wis. Admin. Code Department of Revenue Tax 14.02
Cr. Register, February, 1990, No. 410, eff. 3-1-90; r. (2) (c) and am. (5), (9), (10) and (11), Register, July, 2000, No. 535, eff. 8-1-00.Amended by, CR 21-085: am. (9) (Example) Register August 2022 No. 800, eff. 9/1/2022 The qualification for a homestead credit of a person who becomes married or divorced during a claim year or occupies a separate dwelling from his or her spouse for any part of a claim year is described in s. Tax 14.06.
Section Tax 14.02 interprets ss. 71.52(1), (2) and (7), 71.53(1) (b) and (c) and (2) (d) and 71.58(1) (b), Stats.