Section Tax 14.01 - Administrative provisions(1) PURPOSE. This section describes the Wisconsin homestead credit, defines terms and sets forth administrative provisions applicable to all sections of this chapter.(2) DEFINITIONS. In this chapter and in ss. 71.51 to 71.55, Stats.: (a) "County relief" means assistance provided by a county under s. 59.53(21), Stats., to an eligible dependent person. County relief is a separate program in itself, funded by a block grant program under subch. II of ch. 49, Stats. It does not include other assistance programs, such as social security, supplemental security income, state supplemental payments, federal food stamps, Title XX benefits, community options program payments, aid to families with dependent children, Wisconsin works payments or foster care.(am) "Disqualified loss" has the meaning given in s. 71.52(1e), Stats.(b) "Domicile" has the same meaning for Wisconsin homestead credit purposes as for Wisconsin individual income tax purposes. A claimant's domicile is the true, fixed and permanent home where the claimant intends to remain permanently and indefinitely and to which, whenever absent, the claimant intends to return. It is often referred to as a "legal residence." A claimant may be physically present or residing in one locality and maintain a domicile in another but may have only one domicile at any time.(c) "Domiciled" means maintained a domicile.(d) "Dwelling" means the principal dwelling of a qualified household.(e) "Household" means a claimant and an individual related to the claimant as husband or wife residing in the same homestead as the claimant.(3) WISCONSIN HOMESTEAD CREDIT. (a) Sections 71.51 to 71.55, Stats., provide credit in the form of an income tax credit or a refund to qualifying persons who own or rent their Wisconsin homestead. A claimant may claim Wisconsin property taxes accrued or rent constituting property taxes accrued or both on the claimant's homestead or, in certain cases as described in s. Tax 14.04 (3) (e), Wisconsin property taxes accrued on the claimant's former homestead, as a basis for calculating a credit against Wisconsin income tax otherwise due. If the credit exceeds the claimant's Wisconsin income tax otherwise due or if no income tax is due, the amount not offset against Wisconsin income tax and not applied against any liability under s. 71.55(1), Stats., is paid to the claimant.(b) Under s. 71.54(3), Stats., if an approved homestead credit claim by a qualified claimant is more than zero but less than $10, the amount of credit paid or credited shall be $10.(c) Wisconsin homestead credit claims shall be calculated on a calendar year basis.(4) HOW TO FILE. (a) A homestead credit claim shall be filed on schedule H or H-EZ, titled "Wisconsin homestead credit." Note: Schedules H and H-EZ are available from the department's website at www.revenue.wi.gov.
(b) If a person or the person's spouse files a Wisconsin income tax return and claims a homestead credit on the return, the claimant shall attach schedule H or H-EZ to the income tax return. If the claimant has previously filed the income tax return or is filing an income tax return separately from the schedule H or H-EZ, the preferred procedure for filing a homestead credit claim is to file a duplicate copy of the income tax return with schedule H or H-EZ and to write the words "Duplicate" on the top of the first page of the tax return copy and "Income Tax Return Separately Filed" on the top of schedule H or H-EZ.(c) If neither the claimant nor the claimant's spouse is required to file a Wisconsin income tax return for the year to which the claim relates, the claimant may file schedule H or H-EZ without attaching it to a return.(5) TIME WITHIN WHICH ORIGINAL AND AMENDED CLAIMS SHALL BE FILED.(a) Under s. 71.53(2) (a), Stats., an original homestead credit claim shall be filed with the department in conformity with the filing requirements of s. 71.03(6), (6m) and (7), Stats., or the department shall disallow the claim. The deadline for filing a claim is as follows: 1. A claim filed for a taxable year for which an income tax return is also filed shall be filed on a calendar year basis as provided in sub. (3) (c), within 4 years, 3 1/2 months of the end of the calendar year to which the claim relates.2. Under s. 71.03(6m), Stats., a claim filed by a person who is not required to file an income tax return shall be filed on a calendar year basis. The claim shall be filed within 4 years, 3 1/2 months of the end of the calendar year to which the claim relates.(b) A claimant who files a timely original claim may subsequently file an amended claim with the department. Under s. 71.75(2), Stats., an amended claim shall be filed within 4 years of the deadline for filing the original claim or the department shall disallow the claim. Example: Claimant A, who filed a 2015 homestead credit claim on May 1, 2017, wishes to file an amended 2015 claim. The amended claim may be filed any time on or before April 15, 2024, since the deadline for filing the original 2015 claim was April 15, 2020.
(6) PROOF OF CLAIM. Under s. 71.55(7), Stats., for the purpose of determining the correct amount of homestead credit of a claimant, the claimant shall supply to the department all of the following information that is applicable:(a) All information requested on the form.(b) Proper verification of property taxes accrued as provided in s. Tax 14.04 (4), if the claimant claims property taxes accrued.(c) Proper verification of rent constituting property taxes accrued as provided in s. Tax 14.05 (4), if the claimant claims rent constituting property taxes accrued.(d) The signature of the claimant. If a claimant is unable to sign a claim, the claimant may make an "X" or other mark with the assistance of another person who signs the claim as a witness to the validity of the signature. A legally authorized representative such as a guardian or attorney-in-fact may sign a homestead credit claim in lieu of a living claimant, but a homestead credit claim filed on behalf of a person who is deceased at the time of filing shall be denied as provided in s. Tax 14.02 (11).(7) INCORRECT CLAIMS. (a) The department may give notice of an incorrect homestead credit amount. The department may correct incorrect claims by adjusting the credit claimed, by assessment as income taxes are assessed or by refund, as appropriate. Under ss. 71.74(8) (a) and 71.77(2), Stats., unless the adjustment period is extended by a specific statutory provision, the notice shall be given by the later of 4 years from the unextended due date of the corresponding original income tax return or 4 years from the date a late-filed income tax return is filed. The statutory provisions under which the adjustment period may be extended include the following: 1. The "intent to defeat or evade" provision under s. 71.77(3), Stats.2. The "extension agreement" provision under s. 71.77(5), Stats.3. The "six-year" provision under s. 71.77(7) (a), Stats.4. The "federal change" provisions under s. 71.77(7) (b), Stats.(b) Under s. 71.75(7), Stats., the department shall act on a claim for homestead credit within one year after it receives the claim, or the credit shall be allowed even if incorrect, unless the claimant has agreed in writing to an extension of the one-year time period. Within the one-year period, prior to allowing the credit, the claimed credit may be reduced. However, under s. 71.74(8) (a), Stats., if the date of acting on an amended claim is later than the last date for adjusting an original claim as provided in par. (a), the credit may not be reduced to an amount less than the credit allowed on the original claim, and after allowing the credit on the amended claim no further reduction of the credit may be made. Example: Claimant A timely files a 2013 claim for homestead credit and receives a homestead credit of $500. On November 1, 2019, Claimant A files an amended 2013 claim for homestead credit claiming a revised 2013 credit of $700. Upon review of the file, the department determines that Claimant A's correct homestead credit for 2013 is $300 rather than the $500 allowed on the original claim or the $700 claimed on the amended claim.
Since the amended 2013 homestead credit claim will be acted on after April 15, 2018, the last date for adjusting an original 2013 claim, the department must act on the amended claim by November 1, 2020. Prior to that date the department may notify Claimant A that no additional credit is allowable for 2013. However, the $200 of excessive credit allowed on the original claim, the difference between the $500 allowed and the correct credit of $300, may not be recovered by the department.
(8) INTEREST ON INCORRECT CLAIMS. (a)Excessive claims. Under s. 71.82(1) (c), Stats., excessive homestead credit amounts, not the result of negligence or fraudulent intent, that have been paid or credited shall be subject to interest at 12% per year from the deadline for filing the claim. Assessments to collect excessive homestead credit amounts payable before the deadline for filing the claim may not include interest charges.(b)Understated claims. Under s. 71.55(4), Stats., the department may not pay interest on any homestead credit, including any additional credit, refund or payment allowed as the result of the review of a homestead credit claim or an amended claim. Wis. Admin. Code Department of Revenue Tax 14.01
Cr. Register, February, 1990, No. 410, eff. 3-1-90; am. (3) (a), Register, January, 1991, No. 421, eff. 2-1-91; am. (1), (2) (intro.), (3) (a), (4), (5) (b), (6) and (8), renum. (2) (a) to (d) to be (2) (b), (c) (d) and (a), and am. (a) and (b), renum. (5) (a) to be (5) (a) (intro.) and am., renum. (7) to be (7) (a) (intro.) and am., cr. (5) (a) 1., 2., (7) (a) 1. to 4. and (b), Register, July, 2000, No. 535, eff. 8-1-00.Amended by, CR 16-046: am. (4) (a) to (c) Register January 2018 No. 745, eff. 2/1/2018Amended by, CR 19-141: cr. (2) (am) Register September 2020 No. 777, eff. 10/1/2020Amended by, CR 21-085: am. (5) (a) 2. (Example), (b) (Example), (7) (b) (Example) Register August 2022 No. 800, eff. 9/1/2022Note: Blank forms for filing a homestead credit claim, rent certificates and instructions for claiming the credit may be obtained at any department office throughout the state or by writing to Wisconsin Department of Revenue, P.O. Box 8903, Madison, WI 53708-8903.
Section Tax 14.01 interprets ss. 71.03(6m), 71.51 to 71.55, 71.74(8) (a), 71.75(2) and (7), 71.77(2) and 71.82(1) (c), Stats.