Milwaukee, Wisconsin Taxes

[Pacun]

My clients moved to Milwaukee in August 2014 and wants me to do their taxes. In Milwaukee, they are employees but they bought a house. They moved because of a job offer so they will have moving expenses but that's it.

 

In MD, wife closed an LLC and husband worked as self employed and were renting a room from a house and after august they fully rented the house.

 

In reality, a Wisconsin preparer might difficulties doing the MD return AND I will have difficulties doing their Wisconsin return. I didn't want to their taxes but I believe this year I will be the best equipped for their situation so I am going to accept their request.

 

Any advice about part year residents in Wisconsin and/or Milwaukee?

[mcb39]

Wisconsin Form 1NPR for Part Year and/or Nonresidents of Wisconsin.   I don't know of any particular issues with Milwaukee.  I would imagine that MD also has a Part Year Resident Return Form.  If you need more help, you can PM me.

 

They will also probably have property taxes and maybe mortgage interest on the WI home.  Take a good look at the closing papers.  There won't be much effect on the WI return, but the info might help Fed.  Wisconsin does have a Property Tax and/or Rent Credit.  We also have a Married Couple Credit if both spouses have income.

[mcb39]

In addition:  Moving Expenses are deductible in Wisconsin if the taxpayer is moving INTO Wisconsin; but not deductible if the taxpayer is moving OUT OF Wisconsin.  In other words, you won't have to make an adjustment on the Wisconsin form for the Federal deduction for moving expenses.

Edited January 25, 2015 by mcb39

[Pacun]

Thank you.

 

DC also has a renter/real estate tax credit but only for household that make less than 20K AND they live the whole tax year in DC.

 

I think all the states allow moving in expenses and they don't honor moving out expenses.