MADISON, Wis. (WRN) — Wisconsin would create a new tax exemption for tips under legislation passed in the state Assembly Thursday.
The author of legislation creating a new state income tax exemptions for tips urges the Wisconsin Department of Revenue to get ready for the change.
“This bill is going to pass, and it’s going to get signed by the governor. But if the Department of Revenue doesn’t get ready for that, they will not have their forms ready for the tip earners come tax time. Those tip earners will end up paying their taxes for 2025, and then they’ll have to refile their taxes to get their tip refund back,” said Representative Ron Tusler.
Tusler spoke prior to the state Assembly passing the bill, and another exempting overtime pay from state taxes. Both are now ready for action in the state Senate.