Dept. of Revenue: Earned Income Credit recipients trade delays for larger tax refunds
Individuals who submit the Wisconsin earned income credit (EIC) on their 2020 state income tax return submission can expect refund delays, yet possibly larger refunds. These delays are good news for taxpayers who may get a larger credit than expected due to an adjustment in how the credit is calculated on federal and state taxes. To help offset losses many people experienced from missed income in 2020 due to the pandemic, the IRS and Wisconsin Department of Revenue (DOR) are basing EIC on the greater of the taxpayer’s 2019 and 2020 incomes. This tax law change was adopted as a