Wisconsin Frequently Asked Questions
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Wisconsin Frequently Asked Questions
- What is electronic filing?
- Why should I electronically file my tax return?
- What are the costs involved in electronic filing?
- How long does it take to electronically file my return?
- Is electronic filing secure?
- Will my chances of being audited increase if I electronically file?
- Do I have to electronically file my federal and state income tax returns at the same time?
- Can all income tax forms and schedules be filed electronically?
- Is electronic filing completely paperless?
- When can I electronically file my 2005 income tax return?
- What payment alternatives are offered?
- What is electronic filing?
Electronic filing is a method of filing tax returns where the taxpayer information is transmitted to the revenue agencies electronically over the Internet, a modem, or a phone line.
- Why should I electronically file my tax return?
Electronic filing offers the taxpayer many benefits that cannot be achieved through paper filing, such as:
- Faster refunds using direct deposit
- Accuracy -- you or a tax preparer enters the information and confirms that it is correct
- Acknowledgment of receipt
- Speeds up processing
- Reduces costs for the Department of Revenue which saves you tax dollars
- Security
- If you owe, you can choose direct debit withdrawal from your financial institution. That allows you to select the date you want the transaction to take effect (up to April 15) without having to worry about writing and mailing a paper check.
- What are the costs involved in electronic filing?
The costs will vary according to your choice of electronic filing method. Many tax professionals prefer e-filing and encourage their clients to use it by not charging an additional fee. Other tax professionals incorporate the e-filing fee into their cost of doing business. Off-the-shelf software can vary in price from approximately $30 to $50. Online filing will also vary in price from approximately $10 to $40. You may be eligible for free online filing or Wisconsin Free-File.
- How long does it take to electronically file my return?
Simple returns can be prepared and transmitted in approximately 20 minutes. More complicated returns can take up to 2 hours.
- Is electronic filing secure?
Yes. No one sees your tax information except you, your tax professional (if applicable), the IRS, and the Wisconsin Department of Revenue. There are no worries about delivery or paper shuffling or inappropriate people seeing your personal or financial information. Internet companies that provide web-based tax preparation use the industry standard Secure Sockets Layer (SSL) protocol to encrypt your personal data.
- Will my chances of being audited increase if I electronically file?
No. However, you will be notified within 24 hours if there is a mistake on your electronic return. The IRS reviews e-filed returns and rejects those with errors related to social security number, name, or address mismatch.
- Do I have to electronically file my federal and state income tax returns at the same time?
No. Wisconsin is a "piggyback" state. This means that Wisconsin's electronic filing program works in conjunction with the federal electronic filing program. If you file online or through a tax preparer, you can file both your federal and state income tax returns together. If you e-file your federal return, you can still e-file your Wisconsin return at a later time, if your software supports state-only returns. The Wisconsin Free-File and TeleFile programs are only for filing Wisconsin state individual income tax returns.
- Can all income tax forms and schedules be filed electronically?
The following Wisconsin forms and schedules can be filed electronically:
- All federal individual income tax forms and schedules allowed by the IRS appears in their publication Handbook for Electronic Filers (IRS Publication 1345)
- Form 1, Wisconsin Income Tax Return
- Form 1A, Wisconsin Income Tax Return
- Form WI-Z, Wisconsin Income Tax Return
- Schedule DI, Dairy Investment Credit
- Schedule FC, Farmland Preservation Credit
- Schedule H or Schedule H-EZ, Wisconsin Homestead Credit Claim
- Rent Certificate and Shared Living Expenses
- Property Tax/Sale of Home Information
- Homestead Credit Notes
- Schedule I, Adjustment to Convert 2004 Federal Adjusted Gross Income and Itemized Deductions to the Amounts Allowable Under the Internal Revenue Code
- Schedule MS, Manufacturer's Sales Tax Credit
- Schedule MT, Wisconsin Alternative Minimum Tax
- Schedule RS, Recycling Surcharge
- Schedule WD, Capital Gains and Losses
- Schedule U, Underpayment of Estimated Tax by Individuals and Fiduciaries
- Schedule 2440W, Wisconsin Disability Income Exclusion
- Schedule EIC-A, Wisconsin Earned Income Credit Qualifying Children
- Wisconsin Forms require an accompanying copy of the taxpayer's federal return. The software developer will fulfill this requirement by copying the federal data into the unformatted records of the state packet before transmitting returns to the IRS.
Note: Software companies may not support all schedules above.
- Is electronic filing completely paperless?
Wisconsin returns that include Homestead or Farmland Preservation Credit Claims require a Form W-RA and attachments.
The Electronic Return Originator (ERO) or taxpayer must retain all income statements, such as W-2, W-2G, and 1099-R forms, normally attached to a paper return, for four years. The Department of Revenue may request these documents from the ERO or taxpayer at a later date.
In all other instances, signature documents with attachments must be mailed to this Department, as follows:
ERO Prepared Return and Online Filed Returns
For returns that include a homestead credit claim, the ERO or taxpayer must mail form W-RA * along with all the required attachments (W-2s, W-2Gs, 1099-Rs, original rent certificate(s) or copies of the 2004 property tax bill(s) payable in 2005, homestead credit notes, schedules, deeds, legal documents and statements, and all Schedule H attachments listed in the 2004 Schedule H instructions) to:
When using the U.S. Postal Service:
Wisconsin Department of Revenue
P.O. Box 34
Madison WI 53786-0001
When using a private mail service provider:
Wisconsin Department of Revenue
Mail Opening - Mail Drop 1-151
2135 Rimrock Road
Madison, WI 53713
For returns that include a farmland preservation credit claim, the ERO or tax payer must mail Form W-RA * along with all the required attachments (W-2s, W-2Gs, 1099-Rs, and all other real estate tax bills, Schedule FC attachments listed in the 2004 Schedule FC instructions) to:
When using the U.S. Postal Service:
Farmland Preservation Unit
Wisconsin Department of Revenue
P.O. Box 8967
Madison, WI 53708-8967
When using a private mail service provider:
Wisconsin Department of Revenue
Mail Opening - Mail Drop 1-151
2135 Rimrock Road
Madison, WI 53713
* Form W-RA is provided by your tax professional or is part of your software package or web-based filing program. It may be printed from your computer.
Telefile Returns
Telefile is paperless, unless you have tax due or the Wisconsin Department of Revenue requests information. If you owe money you will need to send Form TPV (Telefile Payment Voucher) with payment to:
Wisconsin Department of Revenue
P.O. Box 2942
Milwaukee, WI 53201-2942
- When can I electronically file my 2005 income tax return?
You can file any time between January and October 17, 2006. However, if you file after April 15, 2006, you must file a federal extension with the IRS. Wisconsin TeleFile is available from January through October 17, 2006. Wisconsin Free-File is available from January through October 17, 2006.
- What payment alternatives are offered?
- Pay by Credit Card Individual Income Taxpayers who filed a Wisconsin tax return with the Department of Revenue last year, Business Taxpayers who file returns and pay bills, and Taxpayers who have a delinquent tax notice payment key are all eligible to pay by Credit Card.
- Pay by Direct Debit Withdrawal -- For electronic filers only
- Direct Debit is available only to individual income taxpayers filing electronically, through the Federal/State program or the Wisconsin Free-File program.
- It' s free and the taxpayer decides when the tax payment is withdrawn from the bank account.
- Funds must be available in the taxpayer's account on the date the taxpayer specifies to withdraw the taxes owed through Direct Debit.
- A taxpayer may e-file early and, at the same time, authorize the withdrawal from a savings or checking account as late as April 15, 2005. If the authorized payment date is after April 15, the return will be rejected.
- For returns filed after April 15th, the payment is effective on the filing date. If the date is later than the return file date, the return will reject.
- Returns will be rejected if the payment date is missing or invalid.
- Pay by check
If you have filed electronically, enclose your check with Form EPV (Electronic Payment Voucher) and mail to:
Wisconsin Department of Revenue
PO Box 2942
Milwaukee , WI 53201-2942
If you have filed a paper return, enclose your check with your return. If you do not enclose a check, a bill will be sent to you after the return has been processed. Note: This may take several weeks and may result in interest being due in addition to the amount owed.
To access OnLine Taxes at olt.com's comprehensive, searchable Knowledge Base, click here.
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