WDOR answers tax practitioner questions (WDOR site, 12-28-18)

2018 Wisconsin FINAL Forms & Schedules (updated 12-6-18)

Wisconsin Dept of Revenue Fall Tax Update Seminars

2018 Tax Software Survey

No more short form or EZ form, beginning 2018

WDOR News for Tax Professionals

New 2018 tax laws from Wisconsin Tax Bulletins

WTB #199 (October 2017)

    Beginning 1-1-18, Wisconsin follows Federal law as regards a tax-free qualified charitable distribution from an IRA directly to a charitable organization.
    Beginning 1-1-18, “disqualified losses” must be included in household income (Homestead Credit). See WTB #199, page 12 (PDF).

WTB #200 (January 2018)


WTB #201 (April 2018)

    Beginning 1-1-18, the Wisconsin reference to Federal’s Internal Revenue Code is updated to the IRC as of 12-31-17.
    Provisions of the Federal Tax Cut & Jobs Act of 2017 that apply to Wisconsin beginning 1-1-18 (PDF)
    Wisconsin AMT exemption & phase-outs are federalized for 2018. Wisconsin AMT is discontinued completely beginning 2019.
    Beginning 4-5-18, expenses allowed for establishing a College Savings Account now include tuition at elementary or secondary public, private, or religious schools.
    Beginning 1-1-18, a subtraction may NOT be claimed for Private School Tuition if the source of payments is withdrawn from a College Savings Account.

WTB #202 (July 2018)


WTB #203 (Oct 2018)

    None (other than a reminder that Forms 1A & WI-Z have been eliminated beginning 2018.

Social Security Cost-of-Living Adjustments

SSB - Yearly Increase

Medicare Part B Premium Increases

medicare premiums

Wisconsin State Retirement Benefits - May 1, 2018 Increase

ADJUSTMENT ... In March, Wisconsin Employee Trust Funds announced the increase or decrease in pension benefits for retired state workers.  The annual adjustment takes place on May 1 of every year, but it’s helpful for preparers to know the amounts ahead of time to help the taxpayer adjust their withholding or estimated payments for 2018.

The ACTUAL adjustments beginning May 2018:
 FIXED/CORE: + 2.4% (increase)
 VARIABLE:     + 17.0% (increase)

SHORTCUT ... Once again, for estimate purposes, we have calculated a “shortcut method” to easily compute the total retirement benefit for the entire year, which includes the first 4 months and the higher amounts for the remaining 8 months. 

D.A.T. Publisher's Shortcut Method for 2018:
Current (Jan, Feb, Mar, Apr) gross monthly annuity amount ...
(Note: keep in mind that this computation is based on the annuity amount received BEFORE the change in May!)

     Current Monthly FIXED  x 12.192 = Total Fixed for the entire year
     Current Monthly VARIABLE x 13.36 = Total Variable for the entire year (corrected March 22)


Example as PROOF ...

Suppose Judy's gross monthly annuity for March 2018 is
         $1,000 for fixed and
         $1,000 for variable. 

$1,000 fixed x 12.192 = $12,192
   (1st 4 months at $1,000/mo = $4,000)
   (Last 8 months at $1,024/mo = $8,192)
           ($1,024 reflects monthly increase by 2.4%)

$1,000 variable x 13.36 = $13,360
   (1st 4 months at $1,000/mo = $4,000)
   (Last 8 months at $1,170/mo = $9,360)
           ($1,170 reflects monthly increase by 17%)

Judy's total fixed amount for 2018 will be $12,192

Judy's total variable amount for 2018 will be $13,360