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
SB20 would change Wisconsin’s earned income tax credit (EITC) rules for a narrow group of married taxpayers. Under current law, married claimants generally must file a joint return to receive the Wisconsin EITC, with limited exceptions. This bill creates a new exception for a married person who files a separate return, lives apart from the spouse at the time of filing, and cannot file jointly because of domestic abuse. For those taxpayers, the bill allows a Wisconsin EITC equal to the amount they would receive if treated as unmarried, using the federal basic earned income credit as the base.
The bill specifies the credit percentages for eligible claimants with qualifying children: 4% for one child, 11% for two children, and 34% for three or more children. It applies to taxable years beginning after December 31, 2024, and defines domestic abuse by reference to existing state law. In effect, SB20 would expand access to the state EITC for certain survivors of domestic abuse who are separated from a spouse but unable to file jointly.
Impact
SB20 would amend Wisconsin Statutes section 71.07(9e) by creating a new paragraph allowing a separate-return EITC claim for certain married individuals affected by domestic abuse and by conforming the existing prohibition on separate-return claims. The bill would affect state income tax administration, particularly the calculation and eligibility rules for the Wisconsin EITC, and would likely benefit qualifying low-income taxpayers with children who are living apart from an abusive spouse. Because the credit is tied to the federal EITC and state percentages, the bill would also have fiscal implications for state revenue.
Sentiment
The available context suggests generally supportive sentiment toward the bill, as reflected by its bipartisan introduction and cosponsorship from senators and representatives of both parties. The bill’s purpose is framed as a targeted relief measure for domestic abuse survivors, which typically draws sympathetic support. However, the bill ultimately failed to pass pursuant to Senate Joint Resolution 1, indicating that despite support for the policy goal, it did not advance to enactment.
Contention
The main policy issue is the scope of eligibility: SB20 limits relief to married taxpayers who live apart and cannot file jointly because of domestic abuse, rather than broadly allowing all separated married filers to claim the credit separately. That narrow design may have been intended to focus benefits on abuse survivors while limiting fiscal cost, but it also means some separated taxpayers would remain ineligible. Another likely point of discussion is the administrative burden of verifying domestic abuse status and separate living arrangements, as well as the revenue impact of expanding EITC eligibility.
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.