In Wisconsin, a beacon of support shines for eligible veterans and their surviving spouses with the Property Tax Credit. This benefit underlines Wisconsin’s appreciation for its veterans by lessening the fiscal burden on your treasured home. More than just figures on paper, this tax credit delivers substantial savings by covering the entirety of property taxes paid annually on your principal residence.
Key Takeaways
- Wisconsin Property Tax Credit for veterans/spouses equals total property taxes on primary residence.
- Eligibility: honorable service, Wisconsin residency at enlistment and currently, 100% service-connected disability or 'individual unemployability.'
- Unremarried surviving spouses with similar criteria also eligible.
- Must obtain eligibility certificate from Wisconsin Department of Veterans Affairs.
- Submit evidence of property taxes with income tax return within 4 years of due date to Wisconsin Department of Revenue.
What is the property tax credit for veterans and surviving spouses?
The property tax credit for veterans and surviving spouses is a credit equivalent to the amount of property taxes paid on a qualifying veteran's or surviving spouse's principal abode during the year. The credit must be claimed on a Wisconsin tax return. Before claiming the credit, the veteran or surviving spouse must acquire confirmation from the Wisconsin Department of Veterans Affairs that he or she is eligible (WDVA). For the initial year that the credit is claimed, a copy of this verification must be submitted to the Wisconsin income tax return.
Who can take use of the credit?
- A qualifying un-remarried surviving spouse or a veteran can take advantage of the veterans and surviving spouses property tax benefit.
- An "eligible un-remarried surviving spouse" is an un-remarried surviving spouse of an individual who fits all of the following criteria (as confirmed by the Wisconsin Department of Veterans Affairs):
- Active duty in the United States armed forces or forces incorporated as part of the United States armed forces, or in the National Guard or a reserve component of the United States armed forces.
- Was a Wisconsin resident at the time of enlistment entry into active service or had been a Wisconsin resident for any five-year period following.
One of the following criteria was met:
- While on active duty and a Wisconsin resident, the resident died.
- Was a Wisconsin resident at the time of death and had either a 100 percent service-connected disability rating or a 100 percent disability rating based on individual un-employability under 38 USC 1114 or 1134.
- In the case of a Wisconsin resident who died in the line of duty while on active or inactive duty for training reasons, died while serving in the National Guard or reserve component
- Was a resident of Wisconsin at the time of his or her death for taxable years starting on or after January 1, 2014, and his or her spouse began to receive, and continues to receive, dependency and indemnity payments, as described in 38 USC 101, after the individual's death (14)
"Eligible veteran" refers to a person who has been certified as meeting all of the following criteria by the Wisconsin Department of Veterans Affairs:
- Served honorably in the United States armed forces or troops absorbed into the United States armed forces.
- Was a Wisconsin resident at the time of enlistment or had been a Wisconsin resident for any five-year period following enlistment.
- Is currently a Wisconsin resident for the purposes of obtaining veterans benefits under Wisconsin Statutes, Chapter 45.
Has a 100 percent service-connected disability rating or a 100 percent disability rating based on individual un-employability under 38 USC 1114 or 1134?
"Individual un-employability" is defined as a condition in which a veteran has a service-connected disability rating of 60 percent under 38 USC 1114 or 1134, or two or more service-connected disability conditions in which one condition has at least a 40 percent scheduler rating and the combined scheduler rating for all conditions is at least 70 percent, and has an administrative adjustment applied to it.
How can I get confirmation that I'm eligible for the credit?
You must acquire WDVA proof of your eligibility. The WDVA website, dva.wi.gov, has all the necessary information, directions, and a request form. Your county veterans service officer can also provide you with information and forms. DVA will provide you a certificate confirming your eligibility after validating the information. For the first year that you claim the credit, you must provide this proof with your Wisconsin income tax return.
Although I did not enter service in Wisconsin, I have resided in the state for a long time and meet all of the other requirements for the credit. Do I meet the requirements?
If you lived in Wisconsin for at least five years after entering active duty military service in the United States armed forces or forces incorporated into the United States armed forces, you may be eligible for the credit. The WDVA must be able to verify your residency status.
Based on individual un-employability, I have a 100 percent service-connected disability rating. Is it true that I am eligible for the credit?
If you meet all of the other requirements, you may be eligible for the credit. After analyzing the information provided, the WDVA will assess eligibility.
Request a consultation with an attorney. Call our office at (630) 324-6666 or schedule a consultation with one of our experienced lawyers today. You can also fill out our confidential contact form and we will get back to you shortly.
To learn about a new property tax exemption in Illinois, click here.
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