In 2021, the credit phases down for those with incomes between the following ranges: Separate expenses, such as room and board or athletic tickets, may not be included. The credit only applies to expenses for tuition and mandatory fees. Those who pay tuition for a qualifying Wisconsin student may be eligible for a tax credit worth up to $6,973 for the 2021 tax year. Wisconsin also offers several tax credits, including: College Tuition Tax Credit In addition, Wisconsin allows for a few other subtractions from your income, including a deduction for private school tuition worth $4,000 for elementary school students and up to $10,000 for secondary school students, adoption expenses worth up to $5,000 per child adopted during the tax year, and contributions to Achieving a Better Life Experience (ABLE) accounts up to $15,000 to pay qualified disability expenses of a disabled person. For example, there are limits on the types of medical expenses and interest charges that can be applied to the credit. That said, not all federally-itemized deductions are eligible to be used toward this credit. To be considered eligible, the total of your allowable federal deductions must exceed the amount of your allowable Wisconsin standard deduction. Notably, this credit can be taken in addition to your Wisconsin standard deduction, and you may be eligible even if you choose not to itemize deductions on your federal return. Rather than have taxpayers itemize deductions on their returns, Wisconsin offers a tax credit for certain federally-itemized deductions. In general, the lower your taxable income is, the higher your standard deduction will be.įor the 2021 tax year, your allowable standard deduction will fall within one of the following ranges: Standard deduction amounts are based on your taxable income and filing status. Wisconsin offers taxpayers the opportunity to take a standard deduction. Income Tax Deductions for Wisconsin Standard Deduction If your Wisconsin taxable income is over: Here is a list of our partners who offer products that we have affiliate links for. While we work hard to provide accurate and up to date information that we think you will find relevant, Forbes Advisor does not and cannot guarantee that any information provided is complete and makes no representations or warranties in connection thereto, nor to the accuracy or applicability thereof. The compensation we receive from advertisers does not influence the recommendations or advice our editorial team provides in our articles or otherwise impact any of the editorial content on Forbes Advisor. Second, we also include links to advertisers' offers in some of our articles these “affiliate links” may generate income for our site when you click on them. This site does not include all companies or products available within the market. The compensation we receive for those placements affects how and where advertisers' offers appear on the site. First, we provide paid placements to advertisers to present their offers. This compensation comes from two main sources. To help support our reporting work, and to continue our ability to provide this content for free to our readers, we receive compensation from the companies that advertise on the Forbes Advisor site. The Forbes Advisor editorial team is independent and objective.
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