Amish in Wisconsin Pay Some Taxes
Amish in Wisconsin generally pay excise taxes, property taxes on businesses, and employment taxes for non-farm labor. They are exempt from Social Security and Medicare taxes due to religious objections to participation in government social insurance programs. Self-employment tax rules apply to their business income.
Religious Freedom and Tax Exemptions
- Religious Conscience: Amish beliefs often prevent participation in state-sponsored social programs.
- Federal Law: The U.S. Federal Government recognizes this exemption, influencing state laws.
- Selective Conscientious Objection: Exemptions are not blanket; they apply to specific programs.
Types of Taxes Paid
- Excise Taxes: Paid on goods like fuel, telephone services, and certain manufactured items.
- Property Taxes: Levied on business property, but often not on farmland used for personal sustenance.
- Employment Taxes: If Amish individuals work outside of their farming operations, they pay these taxes.
Tax Comparison
| Tax Type | Who Pays | Basis of Calculation |
|---|---|---|
| Excise Tax | Businesses & Individuals | Quantity or value of specific goods/services |
| Property Tax (Business) | Business Owners | Assessed value of business property |
| Employment Tax | Amish Employees (non-farm) | Wages earned from outside employment |
Self-Employment Considerations
- Business Income: Income from Amish-owned businesses is subject to income tax.
- Form 1040 Schedule C: Used to report profit or loss from a business.
- No Tax Avoidance: Exemptions are based on religious belief, not a strategy to avoid taxes.
Wisconsin Department of Revenue Resources
For detailed information, consult official publications from the Wisconsin Department of Revenue regarding tax obligations for religious groups and self-employment income.