Child Sales Tax Rebate Common Questions

Transcription

1 Page 1 of 5 State of Wisconsin Department of Revenue Child Sales Tax Rebate Common Questions 1. What is the Child Sales Tax Rebate? 2. Who may claim the Child Sales Tax Rebate? 3. Who is considered a qualified child? 4. Must a claimant file a 2017 income tax return to show a child was his or her dependent? 5. If a claimant is divorced, legally separated, or filed a federal income tax return separate from their spouse for the 2017 tax year, who can claim the rebate for their child? 6. Is a child that was born in 2017 a qualified child? 7. Is a child that was born in 2018 a qualified child? 8. Is a child that died in 2017 or 2018 a qualified child? 9. How does a claimant apply for the Child Sales Tax Rebate? 10. When can a claimant apply for the Child Sales Tax Rebate? 11. What information does a claimant need to know before using the online application? 12. How does a claimant determine his or her Wisconsin residency for 2017? 13. Must a claimant be a full-year resident of Wisconsin to claim the Child Sales Tax Rebate? 14. Must a nonresident or part-year resident of Wisconsin provide documents to claim the Child Sales Tax Rebate? 15. Will a claimant get confirmation when his or her Child Sales Tax Rebate is accepted? 16. When will a claimant receive his or her Child Sales Tax Rebate? 17. How can a claimant check the status of his or her Child Sales Tax Rebate claim?

2 Page 2 of Can the Child Sales Tax Rebate be used to pay a debt owed? 19. Do I have to pay income tax on the child sales tax rebate I receive? 1. What is the Child Sales Tax Rebate? It is a $100 rebate for Wisconsin sales and use tax paid on purchases made for raising a qualified child in Sound fiscal management and a strong economy have resulted in a state budget surplus of almost $400 million for the State of Wisconsin. Governor Walker and the State Legislature have determined that some of the surplus should be returned to taxpayers in the form of a Child Sales Tax Rebate. 2. Who may claim the Child Sales Tax Rebate? A person may claim the rebate if they have a qualified child. Only one person may claim the rebate for that child. A person may claim a $100 rebate for each qualified child. A rebate may not be claimed on behalf of a deceased person. 3. Who is considered a qualified child? A qualified child must be: Under the age of 18 on December 31, 2017 The claimant's dependent for tax year 2017, as defined under sec. 152 of the Internal Revenue Code. A dependent is defined as a qualifying child or a qualifying relative. For more information, and for definitions of a qualifying child and qualifying relative, see federal Publication 501, Exemptions, Standard Deduction, and Filing Information. A United States citizen, and A resident of Wisconsin on December 31, Must a claimant file a 2017 income tax return to show a child was his or her dependent? No. However, the department may request additional information from the claimant to show that the child would have been eligible to be claimed as his or her dependent on a 2017 income tax return. 5. If a claimant is divorced, legally separated, or filed a federal income tax return separate from their spouse for the 2017 tax year, who can claim the rebate for their child? The person that claimed the child as a dependent on his or her 2017 federal income tax return may claim the rebate for the child. Only one person may claim the rebate for that child. 6. Is a child that was born in 2017 a qualified child? Yes, if the child is otherwise a qualified child of the claimant. 7. Is a child that was born in 2018 a qualified child? No. A qualified child must have been born before January 1, 2018, to be claimed for the rebate. 8. Is a child that died in 2017 or 2018 a qualified child?

3 Page 3 of 5 Yes, if the child is otherwise a qualified child of the claimant. 9. How does a claimant apply for the Child Sales Tax Rebate? A claimant can file: Online at childtaxrebate.wi.gov. Available 24 hours per day/7 days per week, this method is the fastest and most convenient way to claim the rebate. A person can use a computer, tablet or smart phone. By phone using KIDS (5437). Available Monday Friday, 7:45 a.m. 4:30 p.m., a customer service representative will file a rebate claim on a claimant's behalf. This option is available for persons who do not have access to the internet or have trouble using our online application. There may be significant wait times for a representative. 10. When can a claimant apply for the Child Sales Tax Rebate? A claimant can apply for the rebate May 15, 2018, through July 2, Late claims will not be accepted. 11. What information does a claimant need to know before using the online application? The claimant should know: Claimant's: Social Security number Wisconsin residency for calendar year 2017 If married, your spouse's Social Security number (if you do not know this information, this data is optional) Qualified child's: Legal name Social Security number Date of birth Wisconsin residency on December 31, 2017 United States citizenship Wisconsin nonresidents and part-year residents that moved out of Wisconsin before December 31, 2017, must provide documentation, as described in question # How does a claimant determine his or her Wisconsin residency for 2017? Full-year Wisconsin resident means an individual who was a legal resident of Wisconsin for the entire 2017 calendar year Nonresident means an individual who was not a legal resident of Wisconsin for any part of 2017 Part-year resident means an individual who was a legal resident of Wisconsin for some part of Must a claimant be a full-year resident of Wisconsin to claim the Child Sales Tax Rebate? No. Wisconsin nonresidents and part-year residents may claim the rebate. However, additional documentation is required, as described in question #14.

4 Page 4 of Must a nonresident or part-year resident of Wisconsin provide documents to claim the Child Sales Tax Rebate? Yes. A Wisconsin nonresident or a part-year resident that moved out of Wisconsin before December 31, 2017, must provide the following documents: Sale receipts to prove at least $100 of non-business Wisconsin sales or use tax was paid in 2017 for each qualified child. A claimant may scan the sale receipts and attach them within the online application or the department will send a letter requesting the sale receipts from the claimant after the application has been filed. Proof that each qualified child was a Wisconsin resident on December 31, Proof can be: School records that child was enrolled in a Wisconsin school at end of 2017 Doctor/insurance records that child was covered in Wisconsin at end of 2017 Day care records that child was cared for in Wisconsin at end of 2017 List of complete addresses where each child lived on December 31, 2017 Explanation how the child was a Wisconsin resident on December 31, Will a claimant get confirmation when his or her Child Sales Tax Rebate is accepted? Yes. A confirmation number will be provided immediately after the rebate claim is submitted. The claimant should keep the confirmation number to check the status of their rebate claim. 16. When will a claimant receive his or her Child Sales Tax Rebate? Most rebates will be issued within three weeks of filing a rebate claim. Some claims could be delayed up to eight weeks if the claim is selected for review. Being selected for review does not necessarily mean that something is wrong with the rebate claimed. If the department needs additional information, a letter will be sent to the claimant. 17. How can a claimant check the status of his or her Child Sales Tax Rebate claim? Use "Where's My Rebate" the fastest way to get the latest information about your Child Sales Tax Rebate. The claimant must have their: Confirmation number OR last four digits of their Social Security number Last name Zip code 18. Can the Child Sales Tax Rebate be used to pay a debt owed? Yes. The Wisconsin Department of Revenue is authorized to intercept any state tax refund or refundable credit to pay debts owed to the department and other government agencies. 19. Do I have to pay income tax on the child sales tax rebate I receive? Federal tax treatment:

5 Page 5 of 5 The Wisconsin child sales tax rebate received in 2018 must be included in federal adjusted gross income if the claimant itemized deductions on their 2017 federal income tax return and sales taxes were included in the itemized deductions claimed on federal Schedule A. See federal Publication 525, Taxable and Nontaxable Income, for more information on recoveries of previously deducted amounts that must be included in taxable income. Wisconsin tax treatment: The Wisconsin child sales tax rebate received in 2018 is not included in a claimant's 2018 Wisconsin taxable income. If the rebate is included in their 2018 federal adjusted gross income, the claimant may take a subtraction for the amount on their 2018 Wisconsin tax return. FOR MORE INFORMATION PLEASE CONTACT: MS 5-77 WISCONSIN DEPARTMENT OF REVENUE Individual Income Tax Assistance PO Box 8949 Madison, WI Phone: KIDS (5437) additional questions to DORRebate@wisconsin.gov April 19, 2018 About Us Contact Us Employment Media Room Plain Language Privacy Training Copyright State of Wisconsin All Rights Reserved