For veterans, homeownership is a major milestone in civilian life. Fortunately, Wisconsin recognizes the service and sacrifice of its veterans by offering property tax relief through the Wisconsin Veterans and Surviving Spouses Property Tax Credit. This tax credit is a game-changer for eligible veterans and their families, helping them reduce the financial burden of owning a home in cities like Madison, Sun Prairie, and Dane County.
What Is the Wisconsin Veterans and Surviving Spouses Property Tax Credit?
The Wisconsin Veterans and Surviving Spouses Property Tax Credit is a credit equal to the amount of property taxes paid during the year on an eligible veteran's or surviving spouse's principal dwelling. This credit is claimed on the Wisconsin income tax return and provides a dollar-for-dollar reduction in state income tax liability.
Verification Requirement
Before claiming the credit, the veteran or surviving spouse must obtain verification of their eligibility from the Wisconsin Department of Veterans Affairs (WDVA). A copy of this verification must be attached to the Wisconsin income tax return for the first year that the credit is claimed. Subsequent submissions are not required unless eligibility changes.
Who Qualifies for the Wisconsin Veterans Property Tax Credit?
1. Eligible Unremarried Surviving Spouse
An "eligible unremarried surviving spouse" means a person (certified by the WDVA) who meets all of the following:
Was married to a veteran who served on active duty in the U.S. Armed Forces, National Guard, or a reserve component.
The veteran was a Wisconsin resident at the time of entry into active service or had lived in Wisconsin for at least five consecutive years after entry into service.
The veteran died while on active duty or was a resident of Wisconsin at the time of death and had a 100% service-connected disability rating.
The surviving spouse has not remarried.
2. Eligible Veteran
An "eligible veteran" is an individual certified by the WDVA who:
Served on active duty under honorable conditions.
Was a Wisconsin resident at the time of entry into service, or lived in Wisconsin for five consecutive years after active service.
Is currently a Wisconsin resident and eligible for veterans benefits.
Has a 100% service-connected disability rating or a 100% rating based on individual unemployability.
How Much Can Veterans Save on Property Taxes?
This credit offers a dollar-for-dollar reduction in Wisconsin state income tax liability, covering 100% of property taxes paid on the veteran’s primary residence.
For example:
If a qualifying veteran in Sun Prairie pays $3,000 in annual property taxes, they can receive a $3,000 tax credit on their Wisconsin state income tax return.
Over 10 years, that’s $30,000 in savings—money that can be reinvested into home improvements, healthcare, or retirement.
How to Apply for the Wisconsin Veterans Property Tax Credit
1. Obtain VA Disability Certification
Eligible veterans must have documentation from the VA verifying their 100% service-connected disability rating.
2. Obtain Verification from WDVA
Veterans and surviving spouses must obtain verification of eligibility from the Wisconsin Department of Veterans Affairs. Forms and instructions can be found at dva.wi.gov or through county veteran service officers. Once approved, the WDVA will issue a certificate that must be attached to the first tax return where the credit is claimed.
3. File Wisconsin State Income Tax Return
Use Form 1 or 1NPR and claim the credit on Schedule VC (Wisconsin Veterans and Surviving Spouses Property Tax Credit).
Attach a copy of property tax bills and proof of payment.
4. Consult a Tax Professional (Optional)
A tax professional can help ensure accuracy and maximize your benefits.
Common Questions About Eligibility
1. I did not enter service from Wisconsin, but I have lived here for a long time. Do I qualify?
Yes, if you lived in Wisconsin for at least five consecutive years at any time after entry into active duty, you may qualify.
2. I have a 100% service-connected disability rating based on individual unemployability. Am I eligible?
Yes, if you meet all other conditions, you may qualify for the credit. The WDVA will verify your eligibility.
3. I am 35 years old and have a 100% service-connected disability rating. Do I qualify?
Yes, as long as you meet all other eligibility requirements.
Why This Tax Credit Matters for Wisconsin Veterans
The Wisconsin Veterans Property Tax Credit provides significant financial relief, helping veterans cover essential expenses such as:
Home maintenance and repairs
Medical expenses
Daily living costs
Retirement savings
By reducing the tax burden, this benefit allows veterans to stay in their homes longer and build financial stability in Wisconsin communities like Middleton, Waunakee, and Cottage Grove.
Final Thoughts: Take Advantage of Your Wisconsin Veterans Benefits
Wisconsin remains committed to honoring its veterans through meaningful financial programs like the Veterans and Surviving Spouses Property Tax Credit. If you or a loved one qualify, don’t leave money on the table—apply today!
Need Help Navigating Your Veteran Homeownership Benefits?
I specialize in helping veterans maximize their benefits and secure their dream homes in Wisconsin. If you're thinking of buying or selling, I’m here to guide you every step of the way.
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