1a, Wi-Z, & Telefile Wisconsin Income Tax Instructions (Page 17 of 32) in pdf

Line Instructions

of one of the following, as verified by the

Exceptions

Department of Veterans Affairs, 30 West

Wisconsin Department of Veterans Affairs:

Mifflin St, PO Box 7843, Madison WI

• Married filing a joint return If property

53707-7843. If you qualify, the Wisconsin

is owned by an eligible veteran and

• An individual who had served on active

Department of Veterans Affairs will send

his/her spouse as joint tenants, tenants-

duty in the U.S. armed forces or in

you a verification of your eligibility.

in-common, or as marital property, the

forces incorporated as part of the U.S.

credit is based on 100% of property

armed forces, who was a resident of

Attachments Attach a copy of your

taxes paid on the principal dwelling.

Wisconsin at the time of entry into active

property tax bill and a copy of the

service, and who, while a resident of

• Married filing a separate return

verification received from the Wisconsin

Wisconsin, died while on active duty.

property is owned by an eligible veteran

Department of Veterans Affairs to your

and his/her spouse as joint tenants,

return.

• An individual who had served on active

tenants-in-common, or as marital

duty under honorable conditions in the

property, each spouse may claim the

Line 38

Amount You Overpaid

U.S. armed forces or in forces

credit based on their respective

incorporated as part of the U.S. armed

If line 37 is more than line 31, complete

ownership interest in the eligible

forces; who was a resident of Wisconsin

line 38 to determine the amount you over-

veteran’s principal dwelling.

at the time of entry into active service;

paid.

who was at least 65 years of age at the

If the principal dwelling is sold during the

Note If you were required to make

time of his or her death or would have

taxable year, the property taxes for the

estimated tax payments and you did not

been 65 years of age at the close of the

seller and buyer are the amount of the tax

make such payments timely, you may

year in which the death occurred; who

prorated to each in the closing agreement

owe what is called “underpayment

was a resident of Wisconsin at the time

pertaining to the sale. If not provided in

interest.” You may owe underpayment

of his or her death; and who had a

the closing agreement, the tax is prorated

interest even if you are due a refund.

service-connected disability rating of

between the seller and buyer in proportion

Read the line 42 instructions to see if you

100% under 38 USC 1114 or 1134.

to months of ownership.

owe underpayment interest. If you owe

• An individual who had served in the

underpayment interest and you show an

If you owned and lived in a mobile home

National Guard or a reserve component

overpayment on line 38, reduce the

as your principal dwelling, “property taxes”

of the U.S. armed forces, who was a

amount on line 38 by the amount of

includes monthly mobile home parking

resident of Wisconsin at the time of

underpayment interest on line 42.

permit fees you paid to the municipality.

entry into that service, and who, while a

“Principal dwelling” means any dwelling

resident of Wisconsin, died in the line of

Line 39

Refund

and the land surrounding it that is

duty while on active or inactive duty for

Fill in on line 39 the amount from line 38

training purposes.

reasonably necessary for use of the

that you want refunded to you.

dwelling as a primary dwelling. It may

“Eligible veteran” means an individual who

include a part of a multidwelling or

Note If you are divorced, see Attach-

is at least 65 years of age and who is

multipurpose building and a part of the

ments on page 14. You may be required

verified by the Wisconsin Department of

land upon which it is built that is used as

to attach a copy of your judgment of

Veterans Affairs as meeting all of the

the primary dwelling.

divorce to your return.

following conditions:

Other Limitations The credit must be

• Served on active duty under honorable

Line 40

Amount of Line 38

claimed within 4 years of the unextended

conditions in the U.S. armed forces or in

due date of the return. The credit is not

to be Applied to your 2006

forces incorporated in the U.S. armed

allowed if you, or your spouse, claim the

Estimated Tax

forces.

farmland tax relief credit, the school

Fill in on line 40 the amount, if any, of the

property tax credit, homestead credit, or

• Was a resident of Wisconsin at the time

overpayment on line 38 you want applied

farmland preservation credit.

of entry into active service.

to your 2006 estimated tax.

Verification of Eligibility for the Credit

• Is currently a resident of Wisconsin for

Line 41

Amount You Owe

Before claiming the credit, you must

purposes of receiving veterans benefits.

request verification from the Wisconsin

If line 37 is less than line 31, complete

• Has a service-connected disability rating

Department of Veterans Affairs indicating

line 41 to determine the amount you owe.

of 100% under 38 USC 1114 or 1134.

that you qualify for the credit. Use Form

WDVA 2097 (which you can find in WDVA

If the amount you owe with your

Computing the Credit The credit is equal

Brochure B0106) to submit your request,

to the property taxes paid during the year

return is $200 or more, you may also owe

along with a copy of the veteran’s DD

what is called “underpayment interest.”

on the claimant’s principal dwelling in

Form 214 and Veterans Administration

This is an interest charge that applies

Wisconsin. The credit is based on real

disability award letter and, if applicable,

when you have not prepaid enough of

and personal property taxes, exclusive of

the veteran’s death certificate, a marriage

your tax through withholding and/or

special assessments, delinquent interest,

certificate, and a completed copy of Form

estimated tax payments. Read the line 42

and charges for service. Do not include

WDVA 0001 (if the veteran never

instructions to see if you owe underpay-

any property taxes that are properly

previously submitted one). The WDVA

ment interest. If you do, include the

includable as a trade or business expense.

0001 and the brochure are available from

underpayment interest from line 42 in the

If the principal dwelling is owned by two or

your county veterans service officer or on

amount you fill in on line 41.

more persons or entities as joint tenants

the Internet at You

or tenants-in-common, use only that part

You may pay by check, money order, or

may submit these forms and supporting

of property taxes paid that reflects the

credit card.

documents to your county veterans service

ownership percentage of the claimant.

officer or mail them to: Wisconsin

1a, Wi-Z, & Telefile Wisconsin Income Tax Instructions Page 17

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