An Act to amend 71.07 (9e) (b); to create 71.07 (9e) (ar) of the statutes; Relating to: allowing certain married persons to claim the earned income tax credit when filing a separate return. (FE)
Summary
AB20 would create a narrow exception to Wisconsin’s earned income tax credit rules for certain married taxpayers who file separately. Under current law, a married claimant generally must file a joint return to claim the Wisconsin EITC, with limited exceptions. This bill would allow a married person to claim the state credit on a separate return if the person lives apart from the spouse and cannot file jointly because of domestic abuse.
The bill ties eligibility to the federal EITC framework and specifies that the Wisconsin credit would equal the amount the claimant would receive if treated as unmarried. It also sets the credit percentages for eligible taxpayers with qualifying children: 4 percent for one child, 11 percent for two children, and 34 percent for three or more children, applied to the federal basic earned income credit amount for which the person would otherwise qualify.
Impact
AB20 would amend Wisconsin Statutes section 71.07(9e) and create a new subsection allowing certain abused spouses to claim the state earned income tax credit while filing separately. It would modify the general prohibition on EITC claims by married persons filing separate returns and add a domestic-abuse-based exception for taxpayers living apart from their spouse. The practical effect would be to expand access to the Wisconsin EITC for a limited group of low-income married taxpayers, while leaving the broader joint-return requirement in place for others.
Sentiment
The available record shows no committee transcript debate or recorded votes, so there is no detailed public discussion to gauge support or opposition. The bill’s introduction by a bipartisan group of Assembly members and two senators suggests at least some cross-party interest in the proposal. However, the bill ultimately failed to pass pursuant to Senate Joint Resolution 1, indicating it did not advance to enactment despite being introduced.
Contention
The main policy issue is the balance between preserving the general rule that married taxpayers must file jointly to claim the EITC and creating an exception for people separated from a spouse due to domestic abuse. Supporters would likely view the bill as a targeted tax relief measure for vulnerable taxpayers and their children, while any concerns would center on administrability, proof of domestic abuse, and whether the exception should be limited to those living apart and unable to file jointly. Because there were no recorded committee discussions in the provided materials, no specific objections or amendments can be identified from the legislative history here.
Crossfiled
An Act to amend 71.07 (9e) (b); to create 71.07 (9e) (ar) of the statutes; Relating to: allowing certain married persons to claim the earned income tax credit when filing a separate return. (FE)
Expands eligibility under New Jersey earned income tax credit program to allow taxpayers who are victims of domestic abuse to claim credit with filing status of married filing separately.
Expands eligibility under New Jersey earned income tax credit program to allow taxpayers who are victims of domestic abuse to claim credit with filing status of married filing separately.
Make Marriage Great Again Act of 2025This bill modifies the federal income tax rate brackets for married individuals filing joint federal income tax returns so that they are twice the amount of the federal income tax rate brackets for unmarried individuals filing federal income tax returns (thus eliminating the tax effect commonly known as the marriage penalty). Further, under the bill, the federal income tax rate brackets for married individuals filing separate federal income tax returns no longer applies for tax years beginning after December 31, 2024.
Relates to creating a separate tax on inheritance income, creating a separate tax on gift income, the computation of the estate tax, and creating a gift tax.
Relates to creating a separate tax on inheritance income, creating a separate tax on gift income, the computation of the estate tax, and creating a gift tax.
Relates to creating a separate tax on inheritance income, creating a separate tax on gift income, the computation of the estate tax, and creating a gift tax.
Relates to creating a separate tax on inheritance income, creating a separate tax on gift income, the computation of the estate tax, and creating a gift tax.