Tax Withholding Rules Interfere With Wisconsin Rate Cut

The Wisconsin Department of Revenue is weighing options for fixing a glitch in state withholding tax rules hampering taxpayers’ ability to quickly claim their share of the state’s $2 billion income tax cut, an agency official said Tuesday.

Revenue Secretary Peter Barca is considering modifying the state tax withholding tables to permit taxpayers to immediately take advantage of a 2021-2023 budget provision that cut the largest bracket in the individual income tax code. Without the change, taxpayers would have to wait until next April and seek a bumper refund from the state.

The budget chopped ...