Wisconsin Child and Dependent Care Deduction
A Department of Revenue release reminds taxpayers they may subtract child and dependent care expenses on their Wisconsin returns starting in tax year 2011. The new subtraction was originally enacted in 2007 but delayed by subsequent legislation until 2011. For 2011, the maximum subtraction is limited to $750 for one qualifying person and $1,500 for two qualifying persons. The amounts will increase each year until 2014, when the maximum subtraction will be $3,000 for one qualifying person and $3,000 for two qualifying persons.
Unlike the federal tax benefit for child and dependent care expenses, the Wisconsin benefit is a deduction rather than a credit. Taxpayers should use the qualifying expenses shown on line 6 of the federal Form 2441, Child and Dependent Care Expenses, subject to the 2011 limitations stated above. The subtraction amount will be shown on a general subtraction line of Wisconsin Form 1, Wisconsin long-form income tax return.
Unlike the federal tax benefit for child and dependent care expenses, the Wisconsin benefit is a deduction rather than a credit. Taxpayers should use the qualifying expenses shown on line 6 of the federal Form 2441, Child and Dependent Care Expenses, subject to the 2011 limitations stated above. The subtraction amount will be shown on a general subtraction line of Wisconsin Form 1, Wisconsin long-form income tax return.