What's new in 2021 for Wisconsin?

Wisconsin has made the following changes to the tax laws for the 2021 tax year:

Tax Brackets:

1. Tax Rates Reduced – The tax rate for the third tax bracket is reduced from 6.27% to 5.3%. This rate reduction is built into the tax table on pages 36-41. You can review the 2021 tax table, here.

Subtractions:

1. Active Duty Military Pay Subtraction – A subtraction is available for certain pay received from the federal government during a period of active duty for members of the U.S. Armed Forces. See page 8 of the Schedule SB instructions.
2. AmeriCorps Education Awards – A subtraction is available for the amount of an AmeriCorps education award received in 2021 used to pay for certain educational expenses. See page 13 of the Schedule SB instructions.
3. College Savings Account – The subtraction for contributions to a Wisconsin state-sponsored college savings account is increased to $3,380 per beneficiary ($1,690 per beneficiary if you are married filing a separate return or a divorced parent). See page 6 of the Schedule SB instructions.
4. Tuition and Fee Expenses – The subtraction for tuition and fees is increased to $6,973 per student. The phase-out range has been increased. See page 4 of the Schedule SB instructions.

REMINDERS:  

IRS Adjustments – If the IRS adjusted any of your federal income tax returns, you must notify the department within 180 days of any adjustment that affects your Wisconsin income tax returns. See page 8.

For more information regarding these changes, please click here.