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Wisconsin Tax Information for Retirees Publication 106
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system (paid by the Defense Finance and Accounting Services) and from the U.S. government that relate to
service with the Coast Guard, the commissioned corps of the National Oceanic and Atmospheric Administration,
or the commissioned corps of the Public Health Service are exempt from Wisconsin income tax. Also see
"Retirement Income Subtraction" below.
Note: If you worked in Wisconsin but are now a resident of another state, payments you receive from a
nonqualified pension or annuity or a nonqualified deferred compensation plan are taxable by Wisconsin unless
(1) the distribution is paid out in annuity form over your life expectancy or for a period of not less than 10 years,
or (2) the distribution is paid in either an annuity form or lump-sum from arrangements known commonly as
"mirror plans." Payments from a qualified plan are not taxable for Wisconsin when received by a nonresident,
even though the payments may be attributable to services performed in Wisconsin.
C. Retirement Income Subtraction
Up to $5,000 of certain retirement income may be subtracted from Wisconsin income if:
• You (or your spouse if married filing a joint return) were age 65 or older on December 31, 2023, and
• Your federal adjusted gross income (FAGI) is less than $15,000. If married, combined FAGI must be less than
$30,000, whether filing jointly or separately.
D. Additional Personal Exemption Deduction
Persons age 65 or older on December 31, 2023, are allowed an additional personal exemption deduction
of $250.
E. Homestead Credit
Retirees age 62 or older or who are disabled and are full-year residents of Wisconsin may qualify for homestead
credit if they meet certain conditions. Homestead credit provides direct relief to homeowners and renters. One
of the qualifications is that your total household income (both taxable and nontaxable income) must be below
$24,680 for 2023. If under age 62 and not disabled, you must have earned income to qualify for the credit.
F. Estimated Tax Payments
If you have income from which Wisconsin tax is not withheld (for example, interest, pension, or annuity income),
you may be required to prepay your tax in installments. Generally, you must pay estimated tax if your tax return
will show a balance due of $500 or more. You may be subject to an interest charge if you do not make required
payments of estimated tax.
4. MEDICAL AND DENTAL EXPENSES
A. Medical Care Insurance
You may be able to subtract all or a portion of the cost of your medical care insurance. "Medical care insurance"
means a medical care insurance policy that covers you, your spouse, and dependents and provides surgical,
medical, hospital, major medical, or other health service coverage (including dental insurance). If you are
receiving social security benefits, the amount paid for medical care insurance includes the amount deducted
from your monthly benefit for Medicare insurance (for example, Parts B and D).
Note: Do not include premiums for medical care or long-term care insurance if you elected to pay those
premiums with tax-free distributions from a retirement plan. In this case, the premiums would have been made
directly to the insurance provider by the retirement plan.