Walker Signs Law That Allows Health Insurance Deductions For Adult Dependents

Gov. Scott Walker signed a bill into law today that will allow more than 15,000 Wisconsin families to exempt income related to health care coverage for adult dependent children from state taxes.

Senate Bill 203, authored by Senator Van Wanggaard (R-Racine), removes Wisconsin as the last state in the country to provide the exemption.
“Without our strong bipartisan action, Wisconsin families would have seen a tax increase when they were least expecting it,” Wanggaard stated in a press release. “Now is not the time to be raising taxes. We need to be lowering the tax burden on our middle class families and easing administrative burdens for employers.”

In most cases, health insurance companies are required to cover dependent children until they reach age 26. Because Wisconsin and the federal government both have a law, which was confusing for employees and employers because the laws were created at different times and in different forms.

The new law corrects this.
“This bill is a win for taxpayers and employers alike,” said Wanggaard. “Taxpayers will see needed tax relief and Wisconsin employers are saved from the administrative nightmare of determining the value of this benefit. Rather than spending resources to update payroll systems and hire consultants, employers can now spend those resources growing jobs in Wisconsin.”