What:

• Expanded eligibility for the Wisconsin Veterans and Surviving Spouses Property Tax Credit

Who:

• Otherwise qualified veterans determined by VA to be Totally Disabled due to Individual Unemployability (TDIU), and their surviving spouses
• [Current law requires the veteran to have a combined VA disability schedular rating of 100 percent]
• Otherwise qualified veterans who have been a Wisconsin resident for any consecutive 5-year period, and their surviving spouses
• [Current law requires the veteran to be a Wisconsin resident at the time of entry onto active duty]
• Otherwise qualified veterans who are less than age 65, and their surviving spouses
• [Current law requires the veteran to be at least age 65]

When:

• Starting with qualifying property taxes paid in 2009; claimed as a refundable income tax credit on the state tax forms in 2010.

Following enactment of the 2007-09 Biennial Budget, 2007 Wis. Act 20, the State of Wisconsin will, beginning with qualifying property taxes paid in 2009 and claimed in 2010, expand the Wisconsin Veterans and Surviving Spouses Property Tax Credit by reducing the residency requirement, eliminating the age requirement, and including additional totally disabled veterans and their unremarried surviving spouses.

According to the new law, those newly eligible will include otherwise qualified veterans who have been determined by the federal VA to be individually unemployable (TDIU). The otherwise qualified surviving spouses of these veterans will also now be eligible. Current law already includes otherwise qualified totally disabled veterans who have a combined VA disability schedular rating of 100 percent, and their surviving spouses.

The expansion will also affect residency requirements. Current law requires otherwise qualified veterans to have been a Wisconsin resident at the time of entry onto active duty. When the new law takes effect, otherwise qualified veterans who have been a Wisconsin resident for any consecutive 5-year period after entry onto active duty military service, and their surviving spouses, will also qualify.

The upcoming expansion will also extend eligibility to otherwise qualified veterans of any age, and their unremarried surviving spouses. Under current law, the veteran must be at least age 65. If the veteran is deceased, he or she must have been at least age 65, or would have reached age 65 in the year of death in order for the otherwise qualified surviving spouse to be eligible. Current law already provides eligibility to the unremarried surviving spouse of a veteran who entered active duty as a Wisconsin resident, died in the line of duty, and was a Wisconsin resident at the time of death.

More information will be available in late 2009, in time for veterans and unremarried surviving spouses to claim the refundable income tax credit on the 2009 Wisconsin state individual income tax return.

For additional information on the current program, instructions on how to apply, and forms, see the WDVA B0106 brochure (Wisconsin Veterans and Surviving Spouses Property Tax Credit). Frequently Asked Questions (FAQs) on this credit is available on the Department of Revenue website.