Wisconsin Senate Bill SB243

Wisconsin 2023-2024 Regular Session

• Introduced: 4/14/23
• Refer: 4/14/23
• Failed: 4/15/24

Caption

Allowing certain married persons to claim the earned income tax credit when filing a separate return. (FE)

Impact

This bill establishes that married claimants who live separately due to domestic abuse can file independently and still claim the EITC. By defining domestic abuse comprehensively, the bill ensures that tax relief can be accessible in situations where safety is a concern. The amount claimable by these individuals is proportionate to their marital status, recognizing their eligibility as if they were single, thereby addressing an important gap in tax law regarding abused spouses.

Summary

Senate Bill 243 focuses on expanding the options for married individuals who face domestic abuse, allowing them to claim the Wisconsin Earned Income Tax Credit (EITC) through a separate tax return. Under current laws, married individuals typically must file joint returns to qualify for the EITC. This legislation aims to provide a necessary financial avenue for those affected by domestic violence, enabling them to receive financial assistance without being compelled to remain in a potentially harmful joint financial situation.

Contention

Notable points of contention regarding SB243 may involve concerns about the definition of domestic abuse and who qualifies as a claimant. Legislators may debate the interpretation of domestic abuse that influences eligibility, as well as the implications of allowing separate tax filings. Additionally, there could be discussions around the fiscal impact of this change on state revenues and whether it broadly addresses the needs of those escaping abusive situations. The balance between providing support and ensuring tax compliance will likely be a significant point of discussion during deliberations.