Wisconsin State Taxes on U.S. Department of Veterans Affairs Disability Dependency and Indemnity Compensation (DIC): DIC is a tax-free monetary benefit paid to eligible survivors of U.S. Armed Forces Service members who died in the line of duty or eligible survivors of Veterans whose death resulted from a service-connected injury or disease.
Military Survivor Benefit Plan (SBP) / Reserve Component Survivor Benefit Plan (RCSBP) / Retired Serviceman’s Family Protection Plan (RSFPP) Wisconsin State Tax Benefits: SBP, RCSBP and RSFPP are not taxed in Wisconsin.
Wisconsin Department of Revenue, How Retirement Benefits are Taxed (Publication 126)
The Wisconsin Veterans and Surviving Spouses Property Tax Credit The definitions of an eligible Veteran and an eligible not-remarried Surviving Spouse are expanded to include:
- Veteran that served on active duty in the U.S. Armed Forces and received an honorable discharge
- Was a Wisconsin resident at the time of entering the U.S. Armed Forces or for five consecutive years after entering the military
- Has a 100% service-connected disability rating from the VA or their branch of service or has been rated as individually unemployable and is eligible for compensation at the 100% rate
- Unremarried Surviving Spouse of a Service member serving in an active or reserve component of the U.S. Armed Forces who died in the line of duty (Service members must meet residency requirements, as listed above, at their time of death)
- Unremarried Surviving Spouse of a Veteran, who had a 100% service-connected disability rating from the VA or their branch of service or has been rated as individually unemployable and is eligible for compensation at the 100% rate (Veteran must meet residency requirements as listed above at their time of death)
- Unremarried Surviving Spouse of a Veteran, who following the Veteran’s death, began to receive and continues to receive Dependency and Indemnity Compensation (DIC) from the VA (Veteran must meet residency requirements as listed above at their time of death).
Applicants must submit verifying documentation and request a Veteran’s Residency Affidavit from the WDVA before they are eligible to apply. The Wisconsin Disabled Veterans and Unremarried Surviving Spouses Tax Credit Information, Instructions and Request Forms Booklet (WDVA B0106) has all documentation requirements, forms and submission instructions.
Wisconsin Department of Revenue, Veteran and Surviving Spouses Property Tax Credit, Frequently Asked Questions
Wisconsin CVSO Directory
Learn more about the Wisconsin Veterans and Surviving Spouses Property Tax Credit
Moving to or within Wisconsin? START WITH MILITARY RELOCATION PROFESSIONAL
When military staff and their families relocate, the services of a Military Relocation Professional who understands their needs and timetables makes the transfer easier, faster, and less stressful.
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