Volunteer Firefighter and Emergency Medical Responder Benefits
For federal income tax purposes, an exclusion from gross income is available to volunteer firefighters and emergency medical responders who are members of a qualified volunteer emergency response organization. For taxable years beginning in 2008 and 2009, gross income does not include:
- Rebates or reductions of property or income taxes provided by a state or local government for providing services as a member of a qualified emergency response organization.
- Qualified payments made by a state or local government for providing services as a member of a qualified emergency response organization. The exclusion is limited to $30 multiplied by the number of months the member performs such services.
The employer can exclude any qualified state or local tax benefit and any qualified payment from the employee's federal wages.
Wisconsin does not follow the above exclusion from income for the volunteer firefighters and emergency medical responders.
Employers must either (1) include the amount that is taxable for Wisconsin purposes (but not taxable for federal purposes) in Box 16 of the Form W-2, or (2) provide employees with a supplemental "Wisconsin only" Form W-2 with the taxable benefits shown in Box 16.
Individuals filing Form 1 or 1NPR should use Wisconsin Schedule I, Adjustments to Convert Federal Adjusted Gross Income and Itemized Deductions to the Amounts Allowable for Wisconsin, to adjust for the difference between the Wisconsin and federal income tax treatment of the volunteer firefighter and emergency medical responder benefits. Individuals filing Form 1A should fill in the adjusted Wisconsin wages on line 1 of Form 1A.
Last updated December 14, 2009