Wisconsin has made the following changes to the tax laws for the 2020 tax year:
- The tax rate for the first and second tax bracket is reduced from 4% to 3.54% and from 5.21% to 4.65%, respectively. You can review the 2020 tax table, here.
- The allowed subtraction for contributions to a WI state-sponsored college savings account has been increased to $3,340 per beneficiary ($1,670 if you are filing as married filing separate).
- The tuition and fees expense subtraction has decreased to$6,972 per student. The phaseout amounts have changed, however. Please click here for the new phaseout amounts based on your filing status.
Form 1 Redesign:
The Form 1 format has changed for tax year 2020. The subtraction and addition modifications previously listed on Form 1 have been transferred to two new schedules. You have Schedule SB for Subtractions from Income and Schedule AD for the Additions to Income. You will need to see those new schedules to claim any of those subtraction or addition modifications.
For more information regarding these changes, please click here.