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Wisconsin Recent Tax Law Changes For 2019

Wisconsin reduces the tax rates for the first and second tax brackets for 2019.  The first bracket is reduced from 4% to 3.86%.  The second bracket is reduced from 5.84% to 5.04%.

Certain business moving expenses are no longer deductible in Wisconsin.  Beginning in 2019 business expenses to move a business outside of Wisconsin or the United States are no longer deductible on a Wisconsin return.

Beginning in 2019, a partnership may elect to pay Wisconsin income tax at the entity level.  If elected the tax rate is 7.9%.  The partners of an electing partnership would exclude their proportionate share of all items of income, gain, loss or deduction of the electing partnership from their adjusted gross income.

Wisconsin increased the amount of allowable subtraction for a contribution to an eligible college savings account.  Beginning in 2019 the maximum allowable subtraction for a Wisconsin college savings account is increased from $3,200 to $3,280 ($1,640 if married filing separately or a divorced parent).