Wisconsin DOR: Some taxpayers can expect delayed but larger refunds

Individuals who submit the Wisconsin earned income credit (EIC) on their 2020 state income tax return can expect refund delays -- but possibly larger refunds -- the state Department of Revenue (DOR) said Friday, April 16. 

To help offset losses many people experienced from missed income in 2020 due to the COVID-19 pandemic, the IRS and DOR are basing EIC on the greater of the taxpayer's 2019 and 2020 incomes.

The tax law change was adopted as a result of the Wisconsin Legislature passing, and Gov. Tony Evers signing, certain tax law provisions in the federal Consolidated Appropriations Act. 

The tax law change happened in February when many taxpayers had already filed their tax returns, so the DOR states it is working to adjust the returns for taxpayers who would have benefited from applying the 2019 income amounts, without requiring the taxpayer to re-file or amend their returns. 

DOR will automatically make these adjustments to make it easier for taxpayers who rely on their EIC.

If you have already filed your Earned Income Credit claim, you do not need to amend to receive the adjustment the law change provides.

The DOR also stresses that in some cases returns may take up to 12 weeks to process due to ID verification and other security or quality assurance measures.

Taxpayers wishing to track their tax refund status may do so on the Where's My Refund page of DOR's website or by downloading the WI Revenue app.

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