Tax Savings Strategies for Married Couples Filing Jointly in Wisconsin: 2025 Edition

Are you a married couple living in Wisconsin, filing jointly, with W-2 income, some interest income, and taxable income around $100,000? If you pay real estate taxes, make mortgage payments, and have no children, you may be wondering how to maximize your tax savings for 2025. Here’s a comprehensive guide to help you make the most of your federal and Wisconsin state tax returns.

1. Federal Standard Deduction and Tax Brackets for 2025

• Standard Deduction: For 2025, the standard deduction for married couples filing jointly is $30,000. If either spouse is 65 or older, you can add $1,600 per qualifying spouse.

  
  

Tax Brackets: With taxable income around $100,000, you’ll fall into the 22% federal tax bracket. The first $96,950 is taxed at lower rates, and income above that up to $206,700 is taxed at 22%.

2. Senior Deduction

   A new $6,000 deduction is allowed for seniors (ages 65+) through 2028, phased out at higher incomes. This is an addition to the existing additional standard deduction for seniors.

   
   

3. Itemized Deductions vs. Standard Deduction

• Real Estate Taxes & Mortgage Interest: If your total itemized deductions (mortgage interest, real estate taxes, charitable contributions, etc.) exceed $30,000, itemizing may save you more than taking the standard deduction.

• SALT Deduction Cap: For 2025, the deduction for state and local taxes (SALT), including property and income taxes, is capped at $40,000 for joint filers. This only matters if you itemize.

  
  

4. Wisconsin State Tax Considerations

• Wisconsin Standard Deduction: Wisconsin uses its own standard deduction, which phases out as income increases. For joint filers with $100,000 in income, the deduction is reduced but still available.

• Itemized Deduction Credit: Wisconsin offers a credit based on certain federal itemized deductions, including mortgage interest and charitable contributions. This credit can help reduce your state tax bill even if you take the standard deduction federally.

  
  

5. Charitable Contributions

• Above-the-Line Deduction: For 2025, you can deduct up to $2,000 in charitable contributions above the line, even if you don’t itemize. This is a great way to support your favorite causes and reduce your taxable income.

• Wisconsin Credit: Charitable contributions also count toward the Wisconsin itemized deduction credit.

  
  

6. Retirement Contributions

• Traditional IRA/401(k): Maximize contributions to tax-deferred retirement accounts. For 2025, you can contribute up to $7,000 per person to an IRA ($8,000 if age 50+), and up to $23,000 per person to a 401(k) ($30,500 if age 50+). These contributions reduce your taxable income.

• Roth IRA: Consider Roth contributions if you expect to be in a higher tax bracket in retirement.

  
  

7. Tax Payments and Withholding

• Withholding: Make sure your W-4 forms are up to date to avoid underpayment penalties.

• Estimated Tax: If you have significant non-wage income (like interest), consider making estimated tax payments.

  
  

8. Recordkeeping and Documentation

Keep all documentation for deductible expenses, including mortgage interest statements (Form 1098), property tax bills, and charitable donation receipts. Good records make tax time easier and help you substantiate your deductions if needed.

9. Planning Tips

• Review Withholding Annually: Adjust your withholding as your income or deductions change.

• Bunch Deductions: If your itemized deductions are close to the standard deduction, consider bunching charitable contributions or other deductible expenses into one year to exceed the threshold and itemize that year.

  
  

Summary Table: Key Federal Deductions and Credits for 2025

Deduction/Credit	2025 Limit/Amount	Notes
Standard Deduction (MFJ)	30,000	Add $1,600 per spouse 65+
SALT Deduction Cap	$40,000	Applies if itemizing; includes state/local income & property taxes
Mortgage Interest Deduction	Interest on up to $750,000	Applies if itemizing
Charitable Contribution (above line)	Up to $2,000	Available even if not itemizing
IRA Contribution Limit	$7,000 per person (<50)	$8,000 if 50+; phaseouts apply

Need personalized advice? Consult a tax professional to review your specific numbers and maximize your tax savings for 2025!