SB 126

This bill creates a nonrefundable individual income tax credit for qualified

expenses incurred by a family caregiver (claimant) to assist a qualified family

member. To be qualified, a family member must be at least 18 years of age, must

require assistance with one or more daily living activities as certified by a physician,

and must be the claimant's spouse or related to the claimant by blood, marriage, or

adoption within the third degree of kinship. Subject to a number of limitations, a

claimant may claim 50 percent of the costs of qualified expenses the claimant paid

for in the year to which the claim relates. These expenses include amounts spent to

improve the claimant's primary residence to assist the family member, equipment

to help the family member with daily living activities, and obtaining other goods or

services to help the claimant care for the family member.

The maximum amount of credit that may be claimed each year for a particular

family member is $1,000 or $500 if married spouses file separately. If more than one

claimant may file a claim related to that family member, the amount of credit each

may claim is based on the percentage of the family member's qualified expenses for

which each claimant paid during the year. No credit may be claimed by a claimant

whose Wisconsin adjusted gross income in the year to which the claim relates exceeds

$75,000 if the claimant is single or is married and files separately or $150,000 if the

claimant is married and files jointly. Generally under the bill, qualified expenses

may not include general food, clothing, transportation, or household repair costs, or

amounts that are paid or reimbursed by an insurance company or the government.

The credit first applies to taxable years beginning after December 31, 2019. Because

the credit is nonrefundable, it may be claimed only up to the amount of the claimant's

tax liability.