New Year Brings Many State Tax Cuts in Wisconsin
The outset of a new year often brings state or federal policy changes. In 2011 the state changes include a number of targeted tax breaks that take effect in January.
A new report by the Wisconsin Budget Project identifies eight new or expanded tax deductions and credits that take effect in January and will save taxpayers about $210 million over the next two years.
One example is a new income tax deduction for child care expenses that begins in tax year 2011 and is expected to save taxpayers $16 million over the next two years. The new child care deduction allows individuals to deduct from their income a portion of child and dependent care expenses up to $750, or $1,500 for couples. The new deduction is gradually being phased in, and it will grow to $3,000 per year ($6,000 for couples) in tax year 2014 and thereafter. Read the full press release.