In Wisconsin, in addition to the state income tax, you also pay FICA (Social Security and Medicare) taxes on your paycheck. These taxes are deducted in fixed percentages from each paycheck. You can lower your taxable income by contributing to tax-advantaged accounts like 401(k)s and IRAs. You may also be able to reduce your taxable income by using your health savings account or flexible spending account (FSA) to pay for medical expenses.
You must file your state tax return by April 30 each year. If you don’t file, you could face a penalty of up to 100% of your tax liability. Additionally, the Department of Revenue may publish a list of delinquent individual and business taxpayers. This list includes information such as your name, social security number, and the amount of taxes owed. If your name is on the list, you can expect to receive a letter from the Department of Revenue asking you to file your tax returns. If you have trouble paying your taxes, you can file for a payment plan. The Department of Revenue has a form you can use to request a payment plan online or by mail.
Wisconsin Taxation Rules
In Wisconsin, the state income tax is based on your filing status and income level. The tax brackets are higher at the lower end of the spectrum and decline as your income increases. In addition, the state allows deductions for private school tuition worth up to $10,000 per student and contributions to ABLE accounts. Wisconsin also has a capital gains tax. However, the tax isn’t imposed on individuals who are 65 or older or married and filing jointly. Moreover, the state doesn’t have an inheritance or estate tax.
If you don’t pay your taxes, the state can seize assets and garnish wages. However, the Department of Revenue is willing to work with you to settle your debt. It offers payment plans and other relief programs for people who struggle to pay their taxes.
The state’s statute of limitations for assessing your tax liability is four to seven years. The department also has 20 years to collect unpaid taxes. This period starts when you filed your return or when the DOR mailed you a notice of assessment.
In Wisconsin, you can appeal changes to your return or account, negligence penalties, and delinquency interest. You can also file an appeal if the DOR has assessed your taxes incorrectly. To do so, submit a letter to the department within 60 days of receiving the notice you are appealing. Include the first page of your original notice along with any documentation you think supports your claim.
Wisconsin Tax Payment Portal
Wisconsin Tax Payment Portal offers an online tax payment portal. You can use this site to make a payment after you have e-filed your return or file an extension. You can also pay estimated taxes using this website. The portal requires you to select an account type and payment type (return or estimated). You will then need to enter your payment amount and agree to the terms of service. You can pay with a credit or debit card, but there are additional fees for using these options.
If you cannot afford to pay your tax debt, the Wisconsin DOR offers a payment plan for individuals and businesses. The state also has an offer-in-compromise program that lets you settle your tax debt for less than you owe. The offer-in-compromise program has strict eligibility requirements and a lengthy application process.
