Pub 127 Homestead Credit Situations and Solutions -- February 2024

Wisconsin

Homestead Credit

Situations and

Solutions

Publication 127 (2/24)

TABLE OF CONTENTS

Page

1. INTRODUCTION ................................................................................................................................. 3

2. SITUATIONS AND SOLUTIONS ............................................................................................................ 3

A. Situations Relating to Attachments or Verification ..................................................................................... 3

(1)

Proper tax forms not attached ....................................................................................................................................... 3

(2)

Schedule H or H-EZ not attached ................................................................................................................................... 4

(3)

Verification of disability status not attached ................................................................................................................. 4

(4)

Proper rent certificates or correct property tax bills not attached ................................................................................ 5

(5)

Ownership not verified when other names on tax bill ................................................................................................... 6

(6)

Proper documentation not attached when homestead sold or purchased ................................................................... 7

B. Situations Relating to Income ................................................................................................................... 7

(1)

Wisconsin Works (W2) or kinship care payments received............................................................................................ 7

(2)

Child support, maintenance payments, and other court ordered support money not included in income on

Schedule H or H-EZ ........................................................................................................................................................ 8

(3)

Social security, pensions, or other retirement benefits not included in income on Schedule H or H-EZ ....................... 9

(4)

Earned income is not reported .................................................................................................................................... 10

(5)

Contributions to a deferred compensation plan or IRA, self-employed SEP, SIMPLE, or qualified plan

deduction not included in income on Schedule H or H-EZ ........................................................................................... 10

(6)

Nontaxable capital gain or excludable gain from sale of homestead not included in income on Schedule H .............. 11

(7)

Depreciation not included in income on Schedule H ................................................................................................... 11

(8)

Disqualified losses not added back to household income ............................................................................................ 12

(9)

Depreciation not deducted from disqualified losses when added back to household income .................................... 12

(10)

Low income or no income reported ............................................................................................................................. 13

C. Situations Relating to Property Taxes or Rent........................................................................................... 13

(1)

Claimant moved during the year .................................................................................................................................. 13

(2)

More than one occupant on rent certificate ................................................................................................................ 14

(3)

Landlord will not sign rent certificate........................................................................................................................... 14

(4)

Claimant received rental assistance during the year.................................................................................................... 14

(5)

Claimant lived in a mobile or manufactured home ...................................................................................................... 15

(6)

Lottery and gaming credit not shown on property tax bill ........................................................................................... 16

(7)

Addresses on tax bill and claim differ .......................................................................................................................... 16

(8)

Possible part business use of homestead ..................................................................................................................... 16

D. Situations Relating to Electronically-Filed Claims ..................................................................................... 17

(1)

Property tax information transmitted electronically is incorrect or incomplete .......................................................... 17

(2)

Rent certificate information transmitted electronically is incorrect or incomplete ..................................................... 17

(3)

Homestead credit notes not transmitted electronically ............................................................................................... 18

(4)

Required attachments not submitted or are improper ................................................................................................ 18

E. Special Situations ................................................................................................................................... 19

(1)

Spouses resided in separate homesteads .................................................................................................................... 19

(2)

Claimant or spouse in nursing home ............................................................................................................................ 20

3. ADDITIONAL INFORMATION ............................................................................................................ 21

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INTRODUCTION

Each year thousands of Wisconsin homestead credit claims require a letter to obtain additional information. In

addition, many claims are adjusted unnecessarily, because insufficient information was provided when the claim

was filed.

This publication lists common situations that require special attention and may require additional documentation

or explanations when filing a homestead credit claim. For each situation, solutions are given that will help avoid

having a letter sent to the claimant to obtain additional information or having the claim adjusted. In the solutions,

the instruction to "attach" various items means the following:

• To attach them to a paper-filed homestead credit claim mailed to the Department of Revenue

• In the case of electronically-filed claims:

o To attach electronic copies of the documents to the claim (if permitted by the software)

o To submit electronic copies using the department's Form W-RA file transfer

o To attach them to the Form W-RA, Required Attachments for Electronic Filing, which is mailed to the

department.

SITUATIONS AND SOLUTIONS

A. Situations Relating to Attachments or Verification

(1) Proper tax forms not attached

Situation

Schedule H or H-EZ is filed without one of the following:

• A Wisconsin income tax return (if required)

• A copy of the federal income tax return and supporting schedules (if required)

• Wage statements (if wages were received)

Solution

ISCONSIN INCOME TAX RETURN

Include a Wisconsin income tax return with Schedule H or H-EZ if one of the following is true:

• Taxable income reported on Schedule H or H-EZ exceeds the amount that requires an income tax return

to be filed

• Income is reported on line 7 of Schedule H (line 4 of Schedule H-EZ)

IMPORTANT CHANGES

Use this publication in preparing your 2023 tax return. There are no substantive differences between this version of

the publication and the previous version (12/22).

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Note: If a Wisconsin income tax return is not required and is not being filed for the year, report taxable

income on line 8 of Schedule H instead of line 7 (line 5 of Schedule H-EZ instead of line 4).

If a Wisconsin income tax return was filed separately from Schedule H or H-EZ, and either the tax return or

homestead credit claim is paper filed, write "Income Tax Return Separately Filed" at the top of Schedule H

or H-EZ, and include the income from the return on line 7 of Schedule H (line 4 of Schedule H-EZ).

EDERAL INCOME TAX RETURN

Include a copy of your federal income tax return with Schedule H or H-EZ. Include any federal schedules

with your federal return, such as federal Schedule C or federal Schedule E.

EQUIRED DOCUMENTS

Attach all required documents, such as Forms W-2, W-2G, 1099-R, and 1098-T. These documents are

needed to verify any income, subtractions, and withholding reported.

(2) Schedule H or H-EZ not attached

Situation

An amount is filled in on the homestead credit line of an original or amended Wisconsin income tax return,

but no Schedule H or H-EZ is included.

Solution

RIGINAL INCOME TAX RETURN

File Schedule H or H-EZ with the original return (paper clip them together). If a homestead credit claim is

not being filed with the return (for example, if Schedule H or H-EZ was filed separately from the return), do

not fill in an amount on the homestead credit line of the original return.

MENDED INCOME TAX RETURN

File a completed or corrected Schedule H or H-EZ with the amended return (paper clip them together). If a

homestead credit claim is not being filed with the return (for example, if Schedule H or H-EZ was filed

separately from the return), do not fill in an amount on the homestead credit line of the amended return.

(3) Verification of disability status not attached

Situation

The claimant is under age 62 and disabled and no statements are sent in to verify disability status.

Solution

Documentation must be attached to the claim to verify disability status, as defined in the homestead

instructions. Proper verification includes one of the following:

• A statement from a physician verifying the date that the disability started and whether the disability is

permanent or temporary

• A statement from the Veteran's Administration certifying the total and permanent disability (VA Form

21-0172)

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• A document from the Social Security Administration stating the date the disability began

(4) Proper rent certificates or correct property tax bills not attached

Situation

One of the following occurs:

• Rent certificates are not attached to the homestead credit claim

• Rent certificates are not properly completed

• The correct property tax bills are not attached

Solution

ENT CERTIFICATES NOT ATTACHED

Attach rent certificates to verify all of the rent claimed. If the claimant is claiming rent for more than one

homestead during the year, attach all of the rent certificates to one Schedule H or H-EZ. Do not file a

separate claim for each homestead.

ENT CERTIFICATES NOT PROPERLY COMPLETED

Be sure all lines of each rent certificate are completed (lines 1 to 8 and the signature line must be completed

by the landlord). There may be no alterations on the rent certificate, such as erasures, line-throughs,

whiteouts, etc. The claimant should obtain a new rent certificate from the landlord if it is incomplete,

incorrect, or it has been altered.

The landlord's signature must be an original signature. No photocopied, stamped, or typed signatures are

allowed. Claimants should NOT sign rent certificates themselves. If the landlord will not sign the rent

certificate, see "Landlord will not sign rent certificate" in Part 2.C.(3).

The total amount of rent paid on line 4a should not include the amount of rental assistance payments

received from a governmental agency. See "Claimant received rental assistance during the year" in Part

2.C.(4). Complete the Shared Living Expenses Schedule on page 2 of the rent certificate, if applicable (see

"More than one occupant on rent certificate" in Part 2.C.(2)).

ORRECT PROPERTY TAX BILLS NOT ATTACHED

Attach property tax bills to verify all of the property taxes claimed, or see "Ownership not verified when

other names on tax bill," in Part 2.A.(5) below, if a homestead was sold or purchased during the year. Be

sure the correct year's property tax bill is attached. For example, the property tax bill attached to a 2023

homestead credit claim must be a 2023 property tax bill, most likely issued in December 2023, and payable

in 2024. Property taxes do not have to be paid in order to claim homestead credit.

Attach the original or a legible duplicate, carbon copy, or photocopy of the property tax bill, or a computer

printout obtained either directly from the county or municipal treasurer or from their website.

The property tax bill or computer printout must show all of the following information:

• Year

• Owner's name

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• Legal description or address of the property

• Assessed value of land and improvements

• Property taxes before and after state aids and credits

• Lines for special assessments and the lottery and gaming credit

Do not attach installment tax stubs, mortgage statements, canceled checks, or money order receipts. They

cannot be accepted as a substitute for the property tax bill.

(5) Ownership not verified when other names on tax bill

Situation

The property tax bill lists "et al." (which means "and others") or lists names other than, or in addition to, the

claimant or the claimant's spouse as owners, and the claimant's ownership is not properly verified.

Solution

Attach verification of the claimant's and/or spouse's ownership percentage (or verification that the claimant

or spouse has a life estate). Verification may be a copy of a deed, a land contract, a life estate agreement

(which is generally provided in a warranty deed or quit claim deed), a divorce judgment, a final judgment in

an estate, or a trust instrument.

Attach a note explaining all of the following:

• What portion of the year the claimant (or claimant and spouse) and each other owner lived in the

homestead

• What portion of the property taxes each owner paid

• Any other information that helps explain the situation

If documentation of ownership and an explanation were provided with a previous year's claim and

circumstances have not changed, attach a note indicating this. It is not necessary to resubmit the

documentation with the current year's claim.

If the homestead is co-owned with persons other than the claimant's spouse, claim only the portion of the

taxes reflecting the claimant's and spouse's ownership percentage (see EXCEPTION below).

If the claimant pays all of the property taxes and the other owners did not live in the homestead during the

year to which the claim relates, claim the portion of the property taxes representing the other owners'

ownership percentage as rent on line 14c of Schedule H (line 9c of Schedule H-EZ). See EXCEPTION below.

EXCEPTION: If the claimant inherited a partial ownership interest in the homestead, but the decedent's will

provides that the claimant is to pay all of the property taxes, use all the property taxes in computing

homestead credit (all the property taxes from the date of the decedent's death if this occurred during the

year to which the claim relates), even though the homestead is co-owned. If the claimant was married and

the spouses resided in separate homesteads for any part of the year, see "Spouses resided in separate

homesteads" in Part 2.E.(1) for information about computing allowable property taxes. Attach a copy of the

will to verify the inheritance and the tax payment requirement. If this documentation was provided in a

previous year, it is not necessary to send it again.

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(6) Proper documentation not attached when homestead sold or purchased

Situation

During the year to which the claim relates, the claimant sold or purchased a homestead for which property

taxes are being claimed, and proper documentation relating to the sale or purchase is not attached.

Solution

OMESTEAD SOLD DURING THE YEAR

Prorate the property taxes for the portion of the year that the claimant both owned and occupied the

homestead that was sold. Attach a copy of the closing statement from the sale to verify the claimant's

ownership of the homestead that was sold, the prorated property taxes, and the date the homestead was

sold.

If the claimant moved from the homestead on or after the selling date shown on the closing statement,

claim the prorated property taxes shown on the closing statement. However, if the claimant moved prior to

the selling date, the property taxes must be further prorated to reflect only the portion of the year that the

claimant resided in the homestead.

Attach a completed rent certificate or property tax bill for the balance of the year or see "H

OMESTEAD

PURCHASED DURING THE YEAR

" below, if applicable. Also see "Claimant moved during the year" in Part 2.C.(1).

Include all of the allowable property taxes and/or rent on one homestead credit claim.

Attach Schedule GL, Gain or Loss on the Sale of Your Home, showing the computation of the gain or loss

from the sale of the homestead. Schedule GL is available on our website at revenue.wi.gov. If the sale

resulted in a gain, see "Nontaxable capital gain or excludable gain from sale of homestead not included in

income on Schedule H" in Part 2.B.(6).

Note: Since any gain must be included in income for homestead credit purposes, a person who sells a

homestead might not be eligible for homestead credit for that year.

OMESTEAD PURCHASED DURING THE YEAR

Prorate the property taxes for the portion of the year that the claimant both owned and occupied the

purchased homestead. Attach both of the following:

• A statement indicating the date the claimant moved to the new homestead

• A copy of the property tax bill

If the previous owner's name is on the property tax bill, attach a copy of the deed to verify the claimant's

ownership and the date the homestead was purchased.

Attach a completed rent certificate or property tax bill for the first portion of the year or see "H

OMESTEAD

SOLD DURING THE YEAR

" above, if applicable. Also see "Claimant moved during the year" in Part 2.C.(1). Include

all of the allowable rent and/or property taxes on one homestead credit claim.

B. Situations Relating to Income

(1) Wisconsin Works (W2) or kinship care payments received

Situation

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The claimant or the claimant's spouse received either Wisconsin Works (W2) or kinship care payments for

one or more months during the year to which the claim relates.

Note: For homestead credit purposes, "Wisconsin Works (W2) payments" are payments received under the

Wisconsin Works assistance program for participating in a community service job or a transitional

placement, or payments received as a caretaker of a newborn child.

Solution

ISCONSIN WORKS (W2)

Place a checkmark in the designated area above line 13 of Schedule H. Include all Wisconsin Works (W2)

payments received on line 9j of Schedule H (line 6i of Schedule H-EZ).

For each month the claimant received Wisconsin Works (W2) payments, reduce property taxes and/or rent

from line 13, 14b, or 14d by 1/12 as shown on Schedule 3 on page 4 of Schedule H (the Taxes/Rent Reduction

Schedule in the Schedule H-EZ instructions).

Note: If property taxes and/or rent from line 13, 14b, or 14d exceed $1,460, use $1,460 as the starting point

for computing the 1/12 reduction.

Example: Rent of $6,000, heat not included, was paid for the year and Wisconsin Works payments were

received for 4 months. Enter this amount on line 14c of Schedule H (line 9c of Schedule H-EZ). The amount

of rent allowed on line 14d is 25% of the rent paid, or $1,500. Since this amount is more than $1,460,

Schedule 3 would be filled out as follows:

Line

Net property taxes on homestead……………………………

$ 0

25% of rent paid ($6,000 x .25)…………………………………

$ 1,500

Smaller of a) total of lines 1 and 2, or b) $1,460……….

$ 1,460

Monthly rent ($1,460 ÷ 12)……………………………………...

$ 122

Number of months no Wisconsin Works received……

$ 8

Reduced rent ($122 x 8 months)………………………………

$ 976

In this example, $976 would be entered on line 15 of Schedule H (line 10 of Schedule H-EZ).

Homestead credit is not allowed if the claimant received Wisconsin Works (W2) payments for all 12 months

of the year. Amounts received under the Wisconsin Works assistance program for job access loans, health

care coverage, child care subsidies, and transportation assistance are not includable in household income

and do not require the 1/12 reduction.

Amounts received under the Wisconsin Works assistance program for a trial job are includable as taxable

wages rather than Wisconsin Works (W2) payments. These payments are reported on a wage and tax

statement, just as any other wages.

INSHIP CARE PAYMENTS

Include all kinship care payments received on line 9j of Schedule H (line 6i of Schedule H-EZ). For months

the claimant received only kinship care payments (i.e., the claimant received no Wisconsin Works (W2)

payments), the 1/12 reduction is not required.

(2) Child support, maintenance payments, and other court ordered support money not included in income on

Schedule H or H-EZ

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Situation

During the year to which the claim relates, the claimant or the claimant's spouse received court ordered

child support, maintenance payments, or other support money, and the income is not included on Schedule

H or H-EZ.

Solution

Report court ordered child support payments, court ordered nontaxable maintenance payments, or other

court ordered support money, on line 9i of Schedule H (line 6h of Schedule H-EZ). Do not include voluntary

support or foster care payments. If the claimant or the claimant's spouse is divorced or separated and has

children, but no child support or maintenance payments were received, attach a note explaining this.

(3) Social security, pensions, or other retirement benefits not included in income on Schedule H or H-EZ

Situation

During the year to which the claim relates, the claimant or the claimant's spouse received:

• Social security

• Supplemental security income (SSI)

• Railroad retirement benefits

• Pensions and annuities (including distributions from a deferred compensation, IRA, SEP, SIMPLE, or

qualified plan)

This income was not included on Schedule H or H-EZ or the claimant is age 65 or older and did not receive

social security, SSI, or railroad retirement benefits.

Solution

OCIAL SECURITY, SSI, AND RAILROAD RETIREMENT

Report the gross amount of social security or SSI benefits on line 9b of Schedule H (line 6b of Schedule H-EZ).

Report the gross amount of railroad retirement benefits on line 9c of Schedule H (line 6c of Schedule H-EZ).

If Medicare premiums were deducted from either social security or railroad retirement benefits, include the

amounts deducted (for example, $164.90 per month per person for 2023 for Medicare Part B premiums,

unless Social Security or the Railroad Retirement Board advises of a different amount) and not just the net

amount of the checks.

Note: "SSI" includes federal SSI payments, the additional "State SSI" payments, "SSI-E" (supplemental

security income - exceptional needs) payments, "SSD" (social security disability) payments, and "caretaker

supplement" payments.

Include the $255 social security death benefit if one was received. Do not include social security or SSI

payments paid directly to the claimant's children or to the claimant on the children's behalf, and payments

for services that are made under Title XX of the Social Security Act.

If the claimant or the claimant's spouse was age 65 or older as of December 31 and did not receive either

social security, SSI, or railroad retirement benefits during the year, attach a note explaining this.

ENSIONS AND ANNUITIES

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Report the gross amount of pensions and annuities, including veterans' pensions, disability payments, and

distributions from a deferred compensation, IRA, SEP, SIMPLE, or qualified plan. Fill in the taxable portion

on line 8b of Schedule H (line 5b of Schedule H-EZ). If a Wisconsin income tax return was filed, the taxable

amount should be included on line 7 of Schedule H (line 4 of Schedule H-EZ). Fill in the nontaxable portion

on line 9d (line 6d of Schedule H-EZ). The "gross" amount includes amounts constituting the claimant's

contributions to a retirement plan.

Note: See "Contributions to a deferred compensation plan or IRA, self-employed SEP, SIMPLE, or qualified

plan deduction not included in income on Schedule H or H-EZ" in Part 2.B.(5).

Do not include nontaxable rollovers (amounts transferred from one retirement plan to another) or tax-free

exchanges of insurance contracts (IRC sec. 1035 exchanges). Write "Rollover" or "Tax-Free Exchange" near

line 9d of Schedule H (line 6d of Schedule H-EZ) if this applies to any retirement plan transfer or insurance

contract exchange. Attach a copy of the federal Form 1099-R or other documentation of the rollover or tax-

free exchange if this applies.

Note: Taxable rollovers or conversions from one retirement plan to another, such as from a traditional IRA

to a Roth IRA, should have been included in income on the Wisconsin return and may not be subtracted in

determining household income.

(4) Earned income is not reported

Situation

The claimant is under age 62, not disabled, and does not report earned income.

Solution

Include in your Wisconsin income tax return or on line 8a or 8b the total earned income for the claim year.

Earned income includes wages, salaries, tips, other employee compensation, and net earnings from self-

employment. Note: Medicaid waiver payments excluded from federal adjusted gross income under sec.

131, IRC, are considered earned income for purposes of the earned income requirement to qualify for the

homestead credit. Payments which are excluded from federal adjusted gross income are not required to be

added back to household income.

Caution: Individuals under age 62 who are not disabled must have earned income to qualify to claim

homestead credit. These qualifications apply individually to the claimant and the claimant's spouse. Only

one spouse within the household needs to be age 62 or older, disabled, or have earned income to qualify for

the homestead credit.

(5) Contributions to a deferred compensation plan or IRA, self-employed SEP, SIMPLE, or qualified plan

deduction not included in income on Schedule H or H-EZ

Situation

The claimant or the claimant's spouse has excluded contributions to a deferred compensation plan from

taxable income, or has taken a deduction for a contribution to an IRA, self-employed SEP, SIMPLE, or

qualified plan, and the excluded or deducted contributions are not included in income on Schedule H or H-

EZ.

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Solution

Include on line 9e of Schedule H (line 6e of Schedule H-EZ), all contributions made to a deferred

compensation plan during the year that have been excluded from taxable wages. Generally these amounts

are reported in box 12 of the wage and tax statement (Form W-2) and are preceded by the prefix D, E, F, G,

H, S, or Y.

Include on line 9f of Schedule H (line 6f of Schedule H-EZ), amounts deducted for contributions to an IRA,

self-employed SEP, SIMPLE, or qualified plan. These amounts are reported on lines 16, 20, and 24f and g of

federal Schedule 1 (Form 1040).

Do not include amounts that are rolled over from one retirement plan to another or nondeductible

retirement plan contributions.

(6) Nontaxable capital gain or excludable gain from sale of homestead not included in income on Schedule H

Situation

Nontaxable capital gain (for example, the capital gain exclusion for assets held more than one year) or the

gain from the sale or exchange of a principal residence (which is excludable from taxable income) is not

included on Schedule H.

Solution

Report the excludable gain from the sale or exchange of a principal residence on line 11c of Schedule H.

Report the nontaxable portion of all other capital gains on line 11d of Schedule H.

Attach Schedule GL showing the computation of the gain from the sale or exchange of the principal

residence.

Note: The inclusion of the gain from the sale of the principal residence may result in a person's income

exceeding the maximum income level (currently set at $24,680) in the year the sale occurs. In this case, the

person is not eligible for homestead credit for that year.

(7) Depreciation not included in income on Schedule H

Situation

Not all depreciation is included on Schedule H when:

• Income or loss from a partnership, LLC, or tax-option (S) corporation is reported

• Car and truck expenses are claimed using the standard mileage rate

• Depreciation is claimed on a business, rent, or farm schedule

Note: In this Situation, the term "depreciation" also includes Section 179 expense, depletion, amortization,

and intangible drilling costs.

Solution

ARTNERSHIPS, LLCS, AND TAX-OPTION (S) CORPORATIONS

On line 11g of Schedule H, include the distributive share of depreciation from the partnership, LLC, or tax-

option (S) corporation. It may be necessary to contact the entity to obtain this information. Do not look to

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federal Schedule K-1 or Wisconsin Schedule 3K-1 or 5K-1 for this information, since the items are not all

reportable on those schedules.

If the tax return includes income or loss from an entity, but the entity did not claim any depreciation, write

"None" in Part II of the federal Schedule E (near the entity's name), or attach a note explaining this.

Note: If the partnership, LLC, or tax-option (S) corporation elects to be taxed at the entity level, no

depreciation is required to be added to household income passed through from that entity.

TANDARD MILEAGE RATE

If business car/truck expenses are claimed based on the standard mileage rate, include the allowable

depreciation (28¢ per mile for 2023) on line 11h of Schedule H. Write the number of miles next to the

deduction on federal Schedule C, E, or F, or attach a note indicating the number of miles. However, if the

standard mileage rate is used but the adjusted basis of the vehicle has reached zero, attach a note explaining

this and do not claim depreciation for any miles after the basis has reached zero.

USINESS, RENT, AND FARM SCHEDULES

On line 11i of Schedule H, include all depreciation claimed on a business, rent, or farm schedule that is not

included on line 11g or 11h.

If car/truck expenses are claimed based on actual operating costs rather than the standard mileage rate,

write "actual" next to the deduction on federal Schedule C, E, or F, near where the total number of business

miles are reported on federal Schedule C-EZ, or attach a note explaining that the expenses are based on

actual operating costs.

(8) Disqualified losses not added back to household income

Situation

Disqualified losses included in taxable income are not added back on line 11j of Schedule H.

Solution

The amount of disqualified losses must be added back to household income on line 11j of Schedule H. To

compute the disqualified loss, complete Schedule 4 on page 4 of Schedule H. The amount from line 13 of

this schedule is the amount to add back on line 11j.

When entering losses on lines 2 through 10 of Schedule 4, the gains and losses should not be netted if there

are multiple activities. For example, a claimant has two businesses reported on two Schedules C. Business

A produces a profit of $15,000 while Business B produces a loss of ($20,000). The amount that is added back

on line 2 of Schedule 4 is $20,000. Note: For capital losses, whether there is a net capital gain or loss is

determined at each sale of a capital asset. Sales with a net loss may not be offset with a net gain.

(9) Depreciation not deducted from disqualified losses when added back to household income

Situation

Depreciation was added back to household income on line 11g, 11h, or 11i. The same depreciation was

included in a loss which was added back on line 11j of Schedule H.

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Solution

If a disqualified loss is added back to household income on line 11j of Schedule H, and depreciation from

this loss was already added back to household income on line 11g, 11h, or 11i, the amount of the loss to be

added back to household income should be reduced by the amount of depreciation already included in

household income. If the loss includes depreciation, the disqualified loss is reduced by the amount of this

depreciation on line 12 of Schedule 4 on page 4 of Schedule H.

(10) Low income or no income reported

Situation

The amount of household income to report on Schedule H or H-EZ is less than the amount needed to pay

the rent or property taxes and other living expenses.

Solution

Attach a note explaining the sources of the funds used to pay the rent or property taxes and other living

expenses. If student loans, other loans, gifts, an inheritance, or life insurance proceeds were received,

indicate in the note the approximate amount received from each source, but do not include those amounts

in household income.

C. Situations Relating to Property Taxes or Rent

(1) Claimant moved during the year

Situation

The claimant resided in more than one dwelling during the year to which the claim relates.

Solution

Attach a note listing the address of each dwelling and the dates the claimant lived at each address during

the year. Claim the prorated property taxes or rent for the time the claimant occupied each dwelling during

the year. If less than 12 months of property taxes and/or rent are being claimed, attach a note explaining

where the claimant lived for the balance of the year. If the claimant lived outside Wisconsin, explain the

full-year Wisconsin resident status (for example, temporary absence, maintained Wisconsin domicile, etc.).

Do not claim more than 12 months of property taxes and/or rent. If the claimant paid property taxes and/or

rent for two dwellings for the same time period, claim only the amount for the dwelling where the claimant

actually lived, and explain in a note where the claimant lived during the overlapping period.

If the claimant owned their homestead, claim only the portion of property taxes prorated for the time the

claimant both owned and occupied it. If the homestead was sold during the year, attach a copy of the closing

statement to verify the claimant's ownership of the sold homestead, the prorated property taxes, and the

date of sale. Also see "Proper documentation not attached when homestead sold or purchased" in Part

2.A.(6) and "Nontaxable capital gain or excludable gain from sale of homestead not included in income on

Schedule H" in Part 2.B.(6) earlier in this publication.

If the claimant paid rent for more than one homestead for the year, attach a separate rent certificate for

each homestead. If the claimant moved from a homestead he or she owned to tax-exempt housing, see

paragraph 8 under "Exceptions: Homeowners and/or Renters" in the homestead credit instruction booklet.

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Also see the second EXCEPTION in "Claimant or spouse in nursing home" in Part 2.E.(2) later in this

publication.

(2) More than one occupant on rent certificate

Situation

The number of occupants shown on line 5 of the rent certificate is more than one, and the shared living

expenses are not divided equally among the occupants.

Note: The claimant's spouse and minor children – those under age 18 as of December 31 of the year to

which the claim relates – should not be counted as occupants on the rent certificate.

Solution

If the claimant claims an amount other than their proportionate share of the rent (for example, there are 3

occupants and the claimant claims more than 1/3 of the rent shown on the rent certificate), complete the

Shared Living Expenses Schedule on page 2 of the rent certificate to compute the percentage of "shared

living expenses" the claimant paid and check "No" on line 5b of the rent certificate. Shared living expenses

include rent, food, utilities, and other household expenses.

The claimant may claim the portion of the rent that reflects their share of the total shared living expenses.

However, if all lines on the Shared Living Expense Schedule are not filled in, the total amount of rent paid

will be divided by the number of occupants to figure the allowable share of the claimant's rent.

(3) Landlord will not sign rent certificate

Situation

The claimant's landlord will not sign a rent certificate for the year to which the claim relates.

Solution

Claim only rent that can be verified in another manner. Complete all but the signature line of the rent

certificate, including a reasonable estimate of the value of food or services provided by the landlord. Fill in

the rent certificate as follows:

• On line 7, fill in the value of food or services provided by the landlord. Fill in a zero (0) if neither food

nor services were provided.

• On line 8b, check "Yes" or "No" to indicate whether heat was included in the rent.

• Place a checkmark in the designated space above the landlord or authorized representative area of the

rent certificate, indicating the landlord will not sign. Leave the signature line blank. Do not sign the rent

certificate yourself.

Attach the rent certificate to Schedule H or H-EZ. Attach copies of all canceled rent checks (front and back)

or bank money orders to verify all rent claimed. Any portion of the rent claimed that is not verified will not

be allowed.

(4) Claimant received rental assistance during the year

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Situation

The claimant received rental assistance during the year and the amount of rent paid with rental assistance

is included on line 4a, 4b, or 4c of the rent certificate.

Solution

Rental assistance should not be included as rent paid on line 4a, 4b, or 4c of the rent certificate. The claimant

should request a new rent certificate from the landlord with these amounts removed from the amount of

rent paid during the year.

Note: Rental assistance is not considered taxable income to the claimant. These amounts should also not

be included in household income as the claimant is not receiving "cash" public assistance (sec. Tax

14.03(4)(b)3.e. and (5)(a)3., Wis. Adm. Code).

(5) Claimant lived in a mobile or manufactured home

Situation

The claimant lived in a mobile or manufactured home during the year to which the claim relates.

Note: A claimant may own the mobile or manufactured home and rent the land on which it was located,

rent the mobile or manufactured home and own the land, rent both the mobile or manufactured home and

the land, or own both the mobile or manufactured home and the land. The solution covers all of these

situations.

Solution

ENT

Claim any rent the claimant paid for the mobile or manufactured home, or for the land on which it was

located, on line 14a or 14c of Schedule H (line 9a or 9c of Schedule H-EZ). Attach a completed rent certificate

to Schedule H or H-EZ.

ERSONAL PROPERTY TAXES OR REAL ESTATE TAXES

Owners: Claim any personal property taxes or real estate taxes the claimant paid for the mobile or

manufactured home or the land, on line 13 of Schedule H (line 8 of Schedule H-EZ). Attach the property tax

bill to Schedule H or H-EZ and write "mobile home" or "manufactured home" on the tax bill.

Renters: If the claimant rented the mobile or manufactured home or land but paid the personal property

taxes or real estate taxes to the landlord, claim those amounts as rent on line 14a or 14c of Schedule H (line

9a or 9c of Schedule H-EZ). Attach a completed rent certificate to Schedule H or H-EZ (those amounts should

be included on line 3c of the rent certificate).

UNICIPAL PERMIT FEES

Owners: Claim any municipal permit fees the claimant paid for the mobile or manufactured home as taxes

on line 13 of Schedule H (line 8 of Schedule H-EZ). If the landlord collected the municipal permit fees for the

municipality, attach a completed rent certificate to Schedule H or H-EZ (those amounts should be filled in

on line 3c of the rent certificate). If the claimant paid the fees directly to the municipality, attach a statement

from the municipal treasurer, showing the amount the claimant paid.

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Renters: If the claimant rented the mobile or manufactured home but paid municipal permit fees to the

landlord, claim those amounts as rent on line 14a or 14c of Schedule H (line 9a or 9c of Schedule H-EZ).

Attach a completed rent certificate to Schedule H or H-EZ (those amounts should be filled in on line 3c of

the rent certificate).

(6) Lottery and gaming credit not shown on property tax bill

Situation

The property tax bill or computer printout substitute does not have an amount filled in for the lottery and

gaming credit.

Solution

If the claimant received or will receive a lottery and gaming credit separately, subtract the credit from the

amount shown on the property tax bill or computer printout, and include only the net amount on line 13 of

Schedule H (line 8 of Schedule H-EZ). Attach a note explaining that the lottery and gaming credit was

received or will be received separately, and indicate the amount of the credit.

If the claimant did not and will not receive a lottery and gaming credit on their homestead for the year,

attach a note explaining this. If the claimant receives a lottery and gaming credit on their property tax bill

and uses a computer printout as a substitute, and it does not have a line for the lottery and gaming credit,

obtain a replacement document with this information on it.

(7) Addresses on tax bill and claim differ

Situation

The address on the property tax bill is different than the address on the homestead credit claim.

Solution

Attach a statement explaining where the claimant resided during the year to which the claim relates, and

why the addresses are different (for example, the address on the Schedule H or H-EZ is just a mailing

address, the claimant moved there after December 31, etc.).

If the claimant did not reside in the homestead during the entire year, claim the property taxes for only the

portion of the year that the claimant resided in the homestead.

Note: If the claimant resided in other dwellings for which homestead credit may be claimed for the year,

also attach property tax bills or rent certificates for those homesteads. Also see "Claimant moved during

the year" in Part 2.C.(1) earlier in this publication.

(8) Possible part business use of homestead

Situation

One of the following occurs:

• Part of the claimant's homestead is used for rental or business purposes while the claimant lives there

(not including farming)

• Part of the claimant's homestead property (for example, a separate living unit) is occupied by others

rent free

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• The rental or business address is not listed on a rental or business schedule, or it is the same as the

homestead address

Solution

ART RENTAL OR BUSINESS USE

Place a checkmark in the designated area above line 13 of Schedule H, and complete Schedule 2 on page 3

of Schedule H to prorate rent/property taxes for the percentage of rental or business use for which a

deduction is allowed or allowable for federal tax purposes. Claim only the personal portion.

Note: If no rental or business deduction is allowed or allowable, proration is not necessary. Attach a note

indicating that no federal rental or business deduction is allowed or allowable.

ART OCCUPIED RENT FREE

Place a checkmark in the designated area above line 13 of Schedule H, and complete Schedule 2 on page 3

of Schedule H to prorate rent/property taxes for the percentage used by others rent free. Claim only the

personal portion.

DDRESS NOT LISTED

List the address of the rental or business location on the federal Schedule C, C-EZ, or E. If it is the same as

the homestead address but no rental/business deduction is allowed or allowable for federal tax purposes,

attach a note indicating this.

D. Situations Relating to Electronically-Filed Claims

Note: Many of the situations and solutions in Sections A, B, C, and E also apply to electronically-filed ("e-filed")

homestead credit claims. This section applies solely to e-filed claims.

(1) Property tax information transmitted electronically is incorrect or incomplete

Situation

The property tax information sheet transmitted with the e-filed homestead credit claim is incorrect or

incomplete.

Solution

Enter all of the required information, exactly as it is shown on the property tax bill, and in the correct spaces.

For co-owned property, enter the full amount of property taxes, rather than an amount reduced to reflect

the ownership percentage.

Use only the tax bill for the homestead parcel in completing the "Tax Bill Information for Your Home"

section. Use the "Additional Tax Bill Information for Adjoining Property" section for any other tax bills.

Do not fill in occupancy dates unless the homestead was purchased or sold during the year. Complete the

"Closing Statement and Sale of Home Information" section if the homestead was sold during the year.

(2) Rent certificate information transmitted electronically is incorrect or incomplete

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Situation

The rent certificate information transmitted with the e-filed homestead credit claim is incorrect or

incomplete.

Solution

Provide all of the information from the original rent certificate that the landlord has signed. Enter the

information exactly as it appears on the original rent certificate. Do not complete an electronic rent

certificate if there is not an original rent certificate that has been signed by the landlord.

EXCEPTION: If the landlord will not sign, indicate this and complete all of the claimant and landlord

information. Mail copies of each canceled check or bank money order with Form W-RA (see "Required

attachments not mailed or are improper" in Part 2.D.(4)). Any portion of the rent claimed that is not verified

will not be allowed.

Complete the "Allowable Rent for Shared Living Expenses" section when it is filled in on the original rent

certificate. If the e-filing software makes any automatic entries, verify that the amounts are the same as

shown on the original rent certificate. If not, the amounts must be overridden and reentered so they match.

(3) Homestead credit notes not transmitted electronically

Situation

A homestead credit note that is needed is not transmitted with the e-filed homestead credit claim. Refer to

the Schedule H and H-EZ instructions for when a homestead note is needed (such as when the lottery and

gaming credit is not shown on the property tax bill.)

Solution

Whenever a note is needed, transmit the "Notes" page with the e-filed Schedule H or H-EZ. Any attachments

indicated by a note should be submitted to the department electronically or mailed with the Form W-RA

(see "Required attachments not mailed or are improper" below).

Note: For 2023, the "Notes" page as provided to software vendors is titled Homestead Credit Notes and

Attachments Checklist. Vendors may have renamed the document.

(4) Required attachments not submitted or are improper

Situation

The documents that are required to be submitted to the department (when a homestead credit claim is e-

filed) are:

• Not attached to the electronic claim, submitted online, or mailed

• Mailed without Form W-RA

• Mailed before the e-filing acknowledgment

• Incorrect or incomplete

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Solution

Submit all Forms W-2, Forms 1099-R, other Forms 1099, Forms 1098-T, original rent certificate(s) signed by

the landlord, property tax bill(s), and any attachments (those indicated by an electronically transmitted

note, or other attachments as appropriate). When mailing the required documents, put the cover page

(Form W-RA) as the front document and attach the rest behind it.

Submit the actual property tax bill(s) or computer printout(s) from the municipal treasurer, and/or the

original rent certificate(s) signed by the landlord(s), not copies of the documents that are generated by the

e-filing software.

Do not mail Form W-RA and attachments until the Wisconsin e-filing acknowledgment has been received.

Use the mailing address or, if delivery is by a means other than the U. S. Postal Service, the delivery address

shown in the Form W-RA instructions. Do not mail or attach to Form W-RA a copy of the electronically

transmitted homestead credit claim.

E. Special Situations

(1) Spouses resided in separate homesteads

Situation

The spouses resided in separate homesteads for all or part of the year to which the claim relates.

Note: "Resided in separate homesteads" does not include temporary separations. However, if one spouse

is in a nursing home, also see "Claimant or spouse in nursing home" in Part 2.E.(2).

Solution

Determine which spouse (or whether both spouses) may file a homestead credit claim for the year, as

follows:

• If the spouses did not reside together as of December 31: Both spouses may file a claim if they both

qualify. For any portion of the year that the spouses resided together, the combined income and rent

or property taxes must be included on each spouse's claim.

• If the spouses did reside together as of December 31: Only one of the spouses may file a claim. The

spouses must determine which one is to be the claimant.

Compute the household income and rent or property taxes as follows:

OUSEHOLD INCOME

See the "Special Instructions" in the homestead credit instruction booklet for detailed explanations and

exceptions. Attach all of the other required attachments identified in the instructions.

ENT OR PROPERTY TAXES

If the claimant is a renter: Claim the rent for the claimant's homestead, whether the spouse resided with

the claimant or not (if both spouses file a claim, the rent for the portion of the year that the spouses resided

together would be included on both claims).

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If the claimant is a homeowner: The homestead is presumed to be marital property, unless the claimant

proves otherwise (see the "Special Instructions" in the homestead credit instruction booklet, Part 2, item c

of Attachments, for information on how to prove this). Compute allowable property taxes as follows:

• For the portion of the year the spouses resided together, claim the full amount of property taxes (if both

spouses file a claim, these property taxes would be included on both claims).

• For the portion of the year that the spouses did not reside together:

o On the Schedule H of the claimant who resided in the homestead, claim only their one-half share of

the property taxes.

o If the claimant who resided in the homestead pays all of the property taxes, claim the remaining

one-half share of the property taxes (i.e., the spouse's share) as rent on line 14c of Schedule H.

(2) Claimant or spouse in nursing home

Situation

The claimant or the claimant's spouse resided in a nursing home, either during part or all of the year to

which the claim relates, or at the time of filing the claim.

Solution

LAIMANT IN NURSING HOME (Note: This solution applies whether the claimant is single or married.)

Do not file a homestead credit claim if a person is both residing in a nursing home and receiving Title XIX

medical assistance at the time of preparing the claim. In this situation, the person does not qualify for

homestead credit, even if he or she was not in a nursing home during the year to which the claim relates.

If the claimant is residing in a nursing home but not receiving Title XIX at the time of filing the claim,

complete the claim based on where the claimant lived during the year (but see EXCEPTIONS below).

If the claimant resided in a homestead other than a nursing home for part of the year, claim the rent or

property taxes for that homestead for that portion of the year.

For months the claimant resided in a nursing home that is subject to property taxes, claim the rent from the

rent certificate prepared by the nursing home.

For months the claimant resided in a nursing home that is not subject to property taxes, no rent may be

claimed (persons who resided in a property tax-exempt nursing home during the entire year do not qualify

for homestead credit for that year).

If the claimant is married, compute household income as explained in "Spouses resided in separate

homesteads" in Part 2.E.(1).

EXCEPTIONS to claim being based on nursing home rent –

• If the claimant resided in a nursing home during part of the year, and there is a reasonable expectation

that the claimant will be returning to their homestead within one year of entering the nursing home,

the claimant has the option of claiming either of the following:

o Rent or property taxes for the homestead

o Rent for the nursing home

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Note: For either option, the Title XIX restriction at the time of filing the claim still applies.

If this exception applies and the claim is based on rent or property taxes for the claimant's homestead

rather than rent for the nursing home, attach a note explaining that the nursing home stay is temporary,

since question 4a on Schedule H ("Are you now living in a nursing home?") will be answered "Yes."

• If the claimant has moved to a property tax-exempt nursing home from the homestead he or she owns,

has tried to sell it, and has not rented it to others, the claimant may base the claim on the property

taxes for the time he or she still owns the homestead, for up to 12 months after moving to the nursing

home. Note: The Title XIX restriction at the time of filing the claim still applies.

If a claim is filed using this exception, attach a note explaining the situation, since question 4a on

Schedule H ("Are you now living in a nursing home?") will be answered "Yes."

LAIMANT'S SPOUSE IN NURSING HOME

If the claimant's spouse resided in a nursing home during the year, the claimant who is not in a nursing

home (referred to as the "community spouse") may file a homestead credit claim if he or she qualifies (the

spouse in the nursing home being on Title XIX would not disqualify the community spouse claimant). If the

spouse is in a nursing home on December 31, the nursing home spouse may also file a homestead credit

claim if he or she qualifies.

Compute household income as explained in "Spouses resided in separate homesteads" in Part 2.E.(1) earlier.

If the community spouse receives a "community spouse income allowance" from the nursing home spouse

under Wisconsin's Spousal Impoverishment Program, that income is not includable on the community

spouse's Schedule H (it is includable on the nursing home spouse's claim).

Compute the community spouse's property taxes or rent as explained in "Spouses resided in separate

homesteads" in Part 2.E.(1). Attach a note indicating which months the claimant's spouse resided in a

nursing home during the year.

ADDITIONAL INFORMATION

If you are unable to find an answer to your questions about homestead credit, visit the department's website, email,

write, or call:

Visit our website . . . revenue.wi.gov (click on "Common questions" and "Individuals" or click here)

Email. . . DORHomesteadCredit@wisconsin.gov

Write . . . Mail Stop 5-77

Wisconsin Department of Revenue

P.O. Box 8949

Madison, WI 53708-8949

Telephone. . . (608) 266-8641

Fax . . . (608) 267-1030

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Applicable Laws and Rules

This document provides statements or interpretations of the following laws and regulations enacted as of February

15, 2024: ch. 71, Wis. Stats.

Laws enacted and in effect after this date, new administrative rules, and court decisions may change the

interpretations in this document. Guidance issued prior to this date, that is contrary to the information in this

document is superseded by this document, according to sec. 73.16(2)(a), Wis. Stats.