Wisconsin has made the following changes to the tax laws for the 2025 tax year:
- New Retirement Income Subtraction: The amount of retirement income that may be subtracted has increased up to $24,000 for individuals age 67 and older at the end of 2025. See page 6 of the Schedule SB instructions.
- College Savings Account: The subtraction for contributions to a Wisconsin state-sponsored college savings account is increased to $5,130 per beneficiary ($2,560 for Married Filing Separately). See page 6 of the Schedule SB and Schedule SC instructions.
- Tuition and Fee Expenses: The subtraction for tuition and fees increased to $7,649 per student and the phase-out range increased. See page 4 of the Schedule SB instructions.
- Adoption Expenses Subtraction: The subtraction for expenses paid for a qualifying adoption increased to $15,000 per child. See page 9 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 13.
For more information regarding these changes, please click here.