People who submit the Wisconsin Earned Income Credit on their 2020 state income tax return can expect repayment delays or even larger repayments. These delays are good news for taxpayers who could get larger credit than expected due to an adjustment in how the credit is calculated on federal and state taxes, according to the Wisconsin Department of Revenue.
To help make up for the losses suffered by many due to missed income in 2020 due to the pandemic, the IRS and the Wisconsin Department of Revenue are basing the EIC on the highest taxpayer income in 2019 and 2020 This tax law amendment was passed following the passage of the legislature and the signing by Governor Tony Evers of certain provisions of the tax law in the federal Consolidated Appropriations Act.
The change in tax law came in February when many taxpayers had already filed their tax returns, so Wisconsin DOR embarked on a project to adjust the tax returns of taxpayers who would have benefited from the application of 2019 income amounts, without requiring the taxpayer to redo the declaration. or modify their declarations. D
OR will automatically make these adjustments to make it easier for taxpayers who rely on their VIC.
If you have already applied for the earned income credit, you do not need to amend to receive the adjustment provided for by the amended law.
“We are excited to be able to help families streamline their tax filing process and maximize tax filing at a time when families need it most,” said DOR Secretary Peter Barca. “We hope families will understand that the slight delays are worth it. waiting for a larger return as our staff make sure to get the best possible feedback. And the extra money couldn’t have come at a better time as families count every dollar as we continue to beat this pandemic and move forward to better days ahead. “
While the extra layer of EIC review may increase the time it takes to get refunds into the hands of these taxpayers, it results in more money in their pockets to help struggling households when they need it most. the department said on Friday.
Getting refunds into the hands of taxpayers as soon as possible is a top priority for DOR. Submitting an individual tax return electronically is by far the fastest, safest, and most accurate way to file and expedite refunds. But the department also points out that in some cases returns can take up to 12 weeks to process due to identity verification and other security or quality assurance measures.
Taxpayers wishing to track their tax refund status can do so on the Where is my refund page of the DOR website or by downloading the WI Revenue app.