Wednesday, November 19, 2008

Why We Hate Jim Doyle

Doyle-ie, kissing the butts of the Unions, doesn't want Wisconsin tax law to conform with Federal tax law on health savings accounts.

So here's the easy solution!

Wisconsin personal income tax guidance previously issued by the Department of Revenue regarding the state's lack of conformity with federal health savings account provisions (see CCH PAYROLL MANAGEMENT GUIDE Newsletter Issue 2031, dated February 26, 2008) has been updated with respect to the use of Wisconsin Schedule I to adjust for differences between the state and federal treatment. The guidance now specifies that when completing Part II of Schedule I, it will be necessary to complete a revised federal Schedule A to determine the allowable medical expenses for use in determining the Wisconsin itemized deduction credit. Medical expenses paid from the health savings account are included in line 1 of the revised federal Schedule A as a medical expense. All medical expenses are then reduced by 7.5% of federal adjusted gross income. (News for Tax Practitioners, Wisconsin Department of Revenue, November 4, 2008.).

Got that? It shouldn't take more than an hour or two to re-jigger all that shit.

--CCH newsletter

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