The CMO Survey - Highlights and Insights Report - Spring 2024
Complete Instructions
1. NEW for 2008
FREE - SECURE - ACCURATE -
is a new way to file your state tax returns – just visit
revenue.wi.gov and click “ ” to get started
• FREE – file state tax returns without charge
• SECURE – safe and secure submission
• ACCURATE – fewer errors than paper
Plus, refunds within five business days with direct deposit
New for 2008
Questions?
Social Security Benefits Social security benefits are no longer taxable by Wisconsin
Taxpayer Assistance
(page 12).
page 6
Medical Care Insurance The subtraction for medical care insurance is expanded to
Para assistencia gratuita
include a person whose employer pays a portion of the cost of the insurance. Such
en Español
persons may subtract 10% of amount they paid for the insurance (page 13).
ver página 4
Section 179 Expense for Farmers Farmers may be able to claim a sec. 179 expense
Free Tax Preparation
deduction of up to $115,000. Complete Schedule I before completing line 1 of Form 1.
page 2
Schedule CR Certain business credits must be consolidated on Schedule CR (pages 27
Filing Deadline
and 33).
Wednesday,
New Business Credits See pages 22, 25, 27, and 33.
April 15, 2009
Expenses Paid to Related Parties The treatment of interest and rental expenses paid
to a related party has changed (pages 12 and 20).
revenue.wi.gov
FEDERAL PRIVACY ACT In compliance with federal law, you are hereby notified that the request for your social security number on the Wisconsin income tax return is made under
the authority of Section 71.03(6)(a) of the Wisconsin Statutes. The disclosure of this number on your return is mandatory. It will be used for identification purposes throughout the
processing, filing, and auditing of your return and the issuance of refund checks.
Printed on
Recycled Paper
I-111
3. TIPS ON PAPER FILING YOUR RETURN
E‑filed returns can be processed quickly by the department. However, if you decide to paper file, there are
several things you can do that will speed-up the processing of your return. Faster processing means faster
refunds.
Paper returns are electronically scanned. The processing of the return (and any refund) is delayed when
the scanner cannot correctly read the information on the return. To aid in the scanning process, be sure
to do the following:
• Do not submit photocopies to the department. Photocopies can cause unreadable entries.
Your legal last name Legal first name M.I.
• Use BLACK INK. Pencils, colored SMITH JOSEPH J
ink, and markers do not scan well. If a joint return, spouse’s legal last name Spouse’s legal first name M.I.
SMITH MARY E
• Write your name and address clearly Home address (number and street)
2375 N 7 ST
using BLOCK CAPITAL LETTERS
like this City or post office State Zip code
ANYWHERE WI 55555
• NEVER USE COMMAS OR DOLLAR SIGNS when filling in dollar amounts. They can be misread by
scanners.
• Round off amounts to WHOLE DOLLARS – NO CENTS.
• Do not use parentheses ( ) for a negative number. Use a negative sign, ‑ 8300 rather than (8300).
• Print your numbers like this: Do not use:
• Do not add cents in front of the preprinted zeros on entry lines as shown below.
School property tax credit
}
.00
a Rent paid in 008–heat included
Find credit from
.00
table page 4 . 23a
.00
Rent paid in 008–heat not included
Find credit from
.00 .00
b Property taxes paid on home in 008 table page 5 . 23b
• Do not cross out entries. Use correction fluid, if available, or start over.
• Do not write in the margins.
• Always put entries on the lines, not to the side, above, or below the line.
• Lines where no entry is required should be left blank. Do not fill in zeros or zeros with lines through
them.
• Do not draw vertical lines in entry fields. They can be read as a “1” by scanners.
• Do not use staples.
4. Which Form To File For 2008
4
You may file Form WI‑Z You may file Form 1A You must file Form 1 You must file Form 1NPR
if you: if you: if you: if you:
• File federal Form 1040EZ • Were single all year or married • Were a Wisconsin resident • Were domiciled* in another
and file a joint return or file as all year AND state or country at any time
AND
head of household AND during the year OR
• Were a Wisconsin resident • Were married and file a
all year AND • Were a Wisconsin resident all separate return, or were • Are married filing a joint
year AND divorced during the year return and your spouse was
• Were under age 65 on De- domiciled* in another state
OR
cember 1, 008, AND • Have income only from wag- or country at any time during
es, salaries, tips, taxable • Have income which may not the year.
• Do not have W‑2s that scholarships and fellowships, be reported on Form WI-Z
include active duty military interest, dividends, capital or 1A (such as capital gain, * Your domicile is your true,
pay received as a member gain distributions, unemploy- rental, farm, or business fixed, and permanent home to
of the National Guard or ment compensation, pensions, income) OR which, whenever absent, you
Reserves AND annuities, and IRAs AND intend to return. You can be
• Claim adjustments to income
• Did not have inter- physically present or residing
• Have no adjustments to income (such as for alimony paid,
est income from state, in one locality but maintain your
(except deductions for an IRA, tuition expense, or disability
municipal, or U.S. bonds domicile in another.
medical care insurance, or stu- income exclusion) OR
AND dent loan interest) AND Your domicile, once estab-
• Claim credit for itemized de-
lished, does not change unless
• Did not receive unemploy- • Are not claiming credit for ductions, tax paid to another
all three of the following cir-
ment compensation AND itemized deductions, tax paid state, historic rehabilitation,
cumstances occur or exist:
to another state, historic re- venture capital, or repay-
• Are not claiming any
(1) You intend to abandon
habilitation, venture capital, or ment of income previously
credits other than Wis-
your old domicile and take
repayment of income previously taxed OR
consin tax withheld from
actions consistent with that
taxed AND
wages, renter’s and hom- • Are subject to a Wisconsin intent AND
eowner’s school property • Are not subject to a Wisconsin penalty on an IRA, qualified
tax credit, working families () You intend to acquire a new
penalty on an IRA, qualified retirement plan, or Coverdell
tax credit, or the married domicile and take actions
retirement plan, or Coverdell education or medical sav-
couple credit AND consistent with that intent
education or medical savings ings account OR
AND
account.
• Are not claiming Wiscon- • Are subject to the alternative
() You are physically present
sin homestead credit. Exception If you used fed- minimum tax.
in the new domicile.
eral Form 497, you must file
Form 1.
Servicio en Español
La Temporada de Impuestos (Taxes) puede ser confusa. Puede ser aun más confusa si nuestro primer idioma no
es el inglés. Pero ahora hay ayuda. Las siguientes organizaciones ofrecen asistencia gratis en español. Por favor
llamar para los horarios.
SDC (Social Development Commission) Centro Hispano
UMOS, Inc. Southside Neighborhood Service Center 85 W Badger Road
910 W Mitchell St 931 W Madison St Madison WI 53713
Milwaukee WI 53204 Milwaukee WI 53204 (608) 55-018
(414) 89-6600 (414) 64-8444
Algunas preguntas frecuentes han sido traducidas al español. Se pueden encontrar las repuestas a esas preguntas
en el vinculo (link) “En Español” en la columna izquierda de la página principal del Wisconsin Department of Revenue
www.revenue.wi.gov.
5. General Instructions 5
Who Must File Who Should File
Even if you do not have to file, you should file to get a refund
Refer to the table to see if you are required to file a return for
if:
2008.
• You had Wisconsin income tax withheld from your wages.
You must file if your
• You paid estimated taxes for 2008.
Age as of gross income* (or total gross
• You claim the earned income credit or the veterans and
December 31, income of husband and wife)
Filing status 2008 during 2008 was: surviving spouses property tax credit.
Single Under 65 . . . . . . . $9,660 or more
E-Filing (Electronic Filing)
65 or older . . . . . . $9,910 or more
Electronic filing is the fastest way to get your federal and state
Married‑filing Both spouses
income tax refunds. If you choose to have your Wisconsin
joint return under 65 . . . . . . . . $18,000 or more
refund deposited directly in a financial institution account, it
One spouse
may be issued in as few as five working days. Checks may be
65 or older . . . . . . $18,000
issued in as few as seven working days.
Both spouses
65 or older . . . . . . $18,040
You may pay by electronic funds transfer if you file
Married‑filing Any age . . . . . . . . $9,000 or more (applies to
electronically. File early and schedule payment as late as
separate return each spouse individually –
April 15. Go to www.revenue.wi.gov/faqs/pcs/e-faq3.html for
must use Form 1)
more information.
Head of Under 65 . . . . . . . $1,70 or more
household 65 or older . . . . . . $1,50 or more
To file your Wisconsin income tax return electronically, you
can use ...
* Gross income means all income (before deducting expenses)
reportable to Wisconsin. The income may be received in the
• Wisconsin e-file Available for free on the Department of
form of money, property, or services. It does not include items
Revenue website at www.revenue.wi.gov. These Wisconsin
that are exempt from Wisconsin tax. For example, it does not
forms are submitted electronically after you complete them.
include social security benefits or U.S. government interest.
• A tax professional Check your local telephone directory for
Other Filing Requirements the names of tax professionals who offer electronic filing, or
visit our website at www.revenue.wi.gov/eserv/city/index.
You may have to file a return even if your income is less than
html.
the amounts shown on the table. You must file a return for
2008 if: • Tax preparation software Purchase off-the-shelf tax prepara-
tion software to install on your computer, or connect to one
• You could be claimed as a dependent on someone else’s
of the private vendor websites that offer electronic filing. For
return and either of the following applies:
more information, visit our website at www.revenue.wi.gov/
(1) Your gross income was more than $900 and it eserv/webased.html or www.revenue.wi.gov/eserv/offshelf.
included at least $301 of unearned income, or html.
(2) Your gross income (total unearned income and
When to File/Extension of Time to File
earned income) was more than –
$8,960 if single, Your return is due April 15, 2009.
$11,570 if head of household,
If you cannot file on time, you can get an extension. You may
$16,140 if married filing jointly, or
use any federal extension provision for Wisconsin, even if you
$7,660 if married filing separately.
are filing your federal return by April 15.
Unearned income includes taxable interest, dividends,
capital gain distributions, and taxable scholarship and
How to get an extension You do not need to submit a request for
fellowship grants that were not reported to you on a W-2.
an extension to the department prior to the time you file your
Earned income includes wages, tips, and scholarship and
Wisconsin return. When you file your Form 1 enclose either:
fellowship grants that were reported to you on a W-2.
• a copy of your federal extension application (for example,
• You owe a penalty on an IRA, retirement plan, Coverdell Form 4868) or
education savings account, or Archer medical savings
• a statement indicating which federal extension provision
account.
you want to apply for Wisconsin (for example, the federal
• You were a nonresident or part-year resident of Wisconsin automatic 6-month extension provision).
for 2008 and your gross income was $2,000 or more. If you
Note You will owe interest on any tax that you have not paid
were married, you must file a return if the combined gross
by April 15, 2009. This applies even though you may have
income of you and your spouse was $2,000 or more. (You
an extension of time to file. If you do not file your return by
must file Form 1NPR.)
6. General Instructions
6
April 15, 2009, or during an extension period, you are subject to Milwaukee –
additional interest and penalties. If you expect to owe tax with State Office Bldg., 819 N. 6th St., Rm. 408
your return, you can avoid the 1% per month interest charge (zip code 53203-1682)
during the extension period by paying the tax by April 15, 2009. income tax information (414) 227-4000
Submit the payment with a 2008 Wisconsin Form 1-ES. You forms requests (414) 227-4000
can get this form from our website at www.revenue.wi.gov or
at any Department of Revenue office. (Exception You will not Appleton –
be charged interest during an extension period if (1) you served 265 W. Northland Ave.
in support of Operation Iraqi Freedom in the United States, or (zip code 54911-2091)
(2) you qualify for a federal extension because of service in a phone: (920) 832-2727
combat zone. See Special Conditions below.)
Eau Claire –
If you were a farmer or fisher and you did not make estimated
State Office Bldg., 718 W. Clairemont Ave.
tax payments, you must file your return and pay any tax due
(zip code 54701-6190)
by March 2, 2009, to avoid paying interest for underpayment
phone: (715) 836-2811
of estimated tax. Farmers and fishers are individuals who
earn at least two-thirds of their gross income (gross income
Other offices open on a limited schedule (generally Mondays)
of both spouses if married filing a joint return) from farming
are: Fond du Lac, Green Bay, Hudson, Janesville, Oshkosh,
or fishing.
Rhinelander, Superior, Waukesha, Wausau, and Wisconsin
Rapids.
Special Conditions A “Special Conditions” section is located
to the right of the Filing Status section on page 1 of Form 1. If
Internet Address You can access the department’s website
you have an extension of time to file due to service in support
24 hours a day, seven days a week, at www.revenue.wi.gov.
of Operation Iraqi Freedom in the United States, fill in “01”
From this website, you can:
in the Special Conditions box. If you qualify for an extension
• Complete electronic forms and submit them for free
because of service in a combat zone, fill in “02” in the box. If
• Download forms, schedules, instructions, and publications
you qualify for an extension because of a presidentially-declared
• View answers to frequently asked questions
disaster, fill in “03” in the box and indicate the specific disaster
• E-mail us comments or request help
on the line provided.
• File your return electronically
Tax Help or Additional Forms
TTY Equipment Telephone help is available using TTY
You can get tax help, forms, or publications at any of the
equipment. Call (608) 267-1049 in Madison or (414) 227-4147
following Department of Revenue offices:
in Milwaukee. These numbers are to be used only when calling
with TTY equipment.
(Note Do not mail your completed return to any of the addresses
listed below. Completed returns should be mailed to the address
Informational Publications Available
shown on the return.)
Following is a list of some of the department publications.
These publications give detailed information on specific areas
Madison –
of Wisconsin tax law. You can get these publications from any
Customer assistance:
department office or from our Internet website.
2135 Rimrock Rd.
Mail Stop 5-77
Number and Title
PO Box 8949
(zip code 53708-8949) 102 Wisconsin Tax Treatment of Tax-Option (S) Corpora-
phone: (608) 266-2772 tions and Their Shareholders
e-mail: income@revenue.wi.gov
103 Reporting Capital Gains and Losses for Wisconsin
Forms requests:
Mail Stop 5-77 104 Wisconsin Taxation of Military Personnel
PO Box 8949
106 Wisconsin Tax Information for Retirees
(zip code 53708-8949)
phone: (608) 266-1961 109 Tax Information for Married Persons Filing Separate
website: www.revenue.wi.gov Returns and Persons Divorced in 2008
111 How to Get a Private Letter Ruling From the Wisconsin
Department of Revenue
7. General Instructions 7
113 Federal and Wisconsin Income Tax Reporting
Nine Steps To Filing Your Return
Under the Marital Property Act
1 Get
114 Wisconsin Taxpayer Bill of Rights
all of your records together Make sure
that you have all of your income and expense
117 Guide to Wisconsin Information Returns
records so you can fill in your return correctly. This
120 Net Operating Losses for Individuals, Estates, includes wage statements and interest and dividend
and Trusts
statements.
121 Reciprocity
2 Decide if you will e‑file or paper‑file your return
122 Tax Information for Part-Year Residents and See “E‑Filing” on page 5 for the benefits of e‑filing. If
Nonresidents you decide to e‑file, follow the instructions provided
in the software you use. If you decide to paper‑file,
125 Credit for Tax Paid to Another State
continue with Steps through 9 below.
126 How Your Retirement Benefits Are Taxed
3 Fill in your federal return Before completing Wis-
205 Do You Owe Wisconsin Use Tax? consin Form 1, first fill in your federal return and its
supporting schedules. If you are not required to file a
400 Wisconsin’s Recycling Surcharge
federal return, list the sources and amounts of your
405 Wisconsin Taxation of Native Americans income and your deductions on a separate sheet.
4 Fill
503 Wisconsin Farmland Preservation Credit in your Wisconsin return Follow the line
instructions as you fill in your return.
600 Wisconsin Taxation of Lottery Winnings
5 Sign your Wisconsin return A joint return must be
601 Wisconsin Taxation of Pari-Mutuel Wager
signed by both spouses.
Winnings
6 Check over your Wisconsin return Check the
Questions About Refunds –
following items on your return carefully. Your Form 1
Call: (608) 266-8100 in Madison or may be returned to you or its processing delayed
for:
1-866-WIS-RFND (1-866-947-7363)
toll-free within the U.S. or Canada • missing wage statements,
Visit our Website at: www.revenue.wi.gov. • missing signature,
• missing copy of your federal return (a copy of
If you need to contact us about your refund, please
your federal return must be enclosed with your
wait at least 10 weeks after filing your Form 1. Refund
Wisconsin return),
information may not be available until that time.
• incomplete renter’s or homeowner’s information
(if school property tax credit claimed),
You may call one of the numbers indicated above or
write to: Department of Revenue, Mail Stop 5-77, • incomplete schedules for the itemized deduction
PO Box 8949, Madison WI 53708-8949. If you call, and married couple credits (if credit claimed), or
you will need your social security number and the
• missing list of sources and amounts of income if
dollar amount of your refund.
not required to file a federal return.
An automated response is available 24 hours a day,
7 Assemble your return See page 4 for information
7 days a week, when you call one of the numbers listed
on how to assemble your return. Do not staple your
above. If you need to speak with a person, assistance
return. Stapling your return may delay processing.
is available Monday through Friday from 7:45 a.m.
8 Mail your return
to 4:15 p.m. by calling (608) 266-2772 in Madison or Mail your return and all required
(414) 227-4000 in Milwaukee (long-distance charges, enclosures to the appropriate address listed on
if applicable, will apply).
page 5 under “Where to File.” Be sure to put
sufficient postage on the envelope.
You may also get information on your refund using
9 Keep a copy of your return.
our secure Internet website at www.revenue.wi.gov.
8. Line Instructions
8
Married filing joint return Most married couples will pay less
Before completing Form 1, first fill in your federal return and
its supporting attachments. If you are not required to file a tax if they file a joint return. You may check “married filing
joint return” if any of the following is true:
federal return, list the sources and amounts of your income
and deductions on a separate sheet and include it with your • You were married as of December 31, 2008.
Form 1.
• Your spouse died in 2008 and you did not remarry in 2008.
Follow these instructions to complete Form 1. Prepare • You were married at the end of 2008, and your spouse died
one copy for your records and another to be filed with the in 2009 before filing a 2008 return.
department.
A marriage means only a legal union between a man and a
Use black ink to complete the copy of Form 1 that you woman as husband and wife.
submit to the department. Do not use pencil or red ink.
A husband and wife may file a joint return even if only one had
income or if they did not live together all year. However, both
Period Covered File your 2008 return for calendar year
spouses must sign the return. If you file a joint return, you may
2008 and fiscal years that begin in 2008. For a fiscal year, a
not, after the due date for filing that return, amend it to file as
52-53 week period, or a short-period return, fill in the taxable
married filing separately. A joint return cannot be filed if you
year beginning and ending dates in the taxable year space at
and your spouse have different tax years.
the top of the form. If your return is for a fiscal year, a 52-53
If you file a joint return, both you and your spouse are responsible
week period, or a short-period, also fill in “11” in the Special
for any tax due on the return. This means that if one spouse
Conditions box located to the right of the Filing Status section
does not pay the tax due, the other may have to.
on page 1 of Form 1.
Married filing separate return If you file separate returns, you
Social Security Number Fill in your social security number.
will usually pay more state tax than if you file a joint return.
You must also fill in your spouse’s social security number if
Your tax may be higher on separate returns because:
you are married filing a joint return or married filing a separate
• You cannot take the married couple credit.
return.
• If you lived with your spouse at any time in 2008, a greater
Name and Address Print or type your legal name and amount of any unemployment compensation that you
address. If you are married filing a joint return, fill in your received may be taxable.
spouse’s legal name (even if your spouse did not have any • You will not qualify for the disability income exclusion.
income). If you filed a joint return for 2007 and you are filing
• You will not qualify for the earned income credit.
a joint return for 2008 with the same spouse, be sure to enter
your names and social security numbers in the same order as Head of household If you qualify to file your federal return
on your 2007 return. as head of household, you may also file as head of household
for Wisconsin. Unmarried individuals who paid over half the
Fill in your PO Box number only if your post office does not
cost of keeping up a home for a qualifying person (such as a
deliver mail to your home.
child) can use this filing status. Certain married persons who
lived apart from their spouse for the last 6 months of 2008 who
Filing Status Check the appropriate space to indicate your
paid over half the cost of keeping up a home that was the main
filing status. More than one filing status may apply to you. If
home of their child, stepchild, or foster child for more than half
it does, choose the one that will give you the lowest tax.
of 2008 may be able to use this status.
Note If you became divorced during 2008 or are married and If you are married and qualify to file as head of household,
will file a separate return (including a married person filing be sure to check both “head of household” filing status and
as head of household), you should get Publication 109, Tax “married” on the same line next to the arrow.
Information for Married Persons Filing Separate Returns and
If you do not have to file a federal return, contact any Depart-
Persons Divorced in 2008, for information on what income
ment of Revenue office to see if you qualify. If you file your
you must report.
federal return as a qualifying widow(er), you may file your
Single You may check “single” if any of the following was Wisconsin return as head of household.
true on December 31, 2008:
State Election Campaign Fund You may designate $1 to
• You were never married.
this fund. If you are married, your spouse may also designate
• You were legally separated under a final decree of divorce $1 to this fund. Designating an amount will neither change
or separate maintenance. your tax nor reduce your refund.
• You were widowed before January 1, 2008, and did not Tax District Check either city, village, or town and fill
remarry in 2008. in the name of the Wisconsin city, village, or town in which
you lived on December 31, 2008. Also fill in the name of the
county in which you lived.
9. Line Instructions 9
Line 1 instructions – continued
If any provision of federal law which does not apply for Wis-
School District Number See the list of school district
consin purposes affects your federal adjusted gross income,
numbers on page 37. Fill in the number of the school district
you must complete Wisconsin Schedule I and enclose it with
in which you lived on December 31, 2008.
your Form 1. The amount you fill in on line 1 of Form 1 (and
Special Conditions Certain persons have to enter amounts filled in on Schedule 1 on page 4 of Form 1) should
information in the Special Conditions section. For information be the revised amount determined on Schedule I. See page 6
on when to use the Special Conditions section, see: for how to get Schedule I.
• Special Conditions under When to File/Extension of Time
If Schedule I adjustments in a prior year affect income or
to File, page 6.
expense items in 2008 (e.g., the special 30% or 50% bonus
• Period Covered, page 8. depreciation could not be claimed for Wisconsin purposes),
you must also make adjustments on Schedule I for 2008.
• Interest and Rental Expenses Paid to Related Entities,
page 20.
You may also be required to complete Schedule I if you sold
• Death of a Taxpayer, page 36. assets during 2008, and the gain or loss from the sale is different
for Wisconsin and federal purposes due to Schedule I adjust-
• Instructions for enclosing a divorce decree or injured spouse
ments made in a prior year. This would occur, for example,
form, page 35.
if different rates of depreciation were allowed for Wisconsin
If more than one special condition applies, fill in “99” in the and federal purposes. See the instructions for Schedule I for
Special Conditions box. more information.
Rounding Off to Whole Dollars The form has
Line 2 State and Municipal Interest
preprinted zeros in the place used to enter cents. All amounts
Fill in the amount of interest you received from state and
filled in the form should be rounded to the nearest dollar. Drop
municipal bonds. This will generally be the amount shown on
amounts under 50¢ and increase amounts from 50¢ to 99¢ to
line 8b of your federal Form 1040 or 1040A or the amount iden-
the next whole dollar. For example, $129.39 becomes $129 and
tified as tax-exempt interest on line 2 of Form 1040EZ. (If you
$236.50 becomes $237.
were required for federal purposes to allocate expenses to this
Round off all amounts. But if you have to add two or more income, reduce the amount to be filled in by such expenses.)
amounts to figure the amount to fill in on a line, include cents
Exception If you received interest income which is exempt
when adding and only round off the total. If completing the form
for state and federal tax purposes, do not include this interest
by hand, DO NOT USE COMMAS when filling in amounts.
income on line 2. Interest income which is exempt for federal
and Wisconsin tax purposes includes interest from:
Line 1 Federal Adjusted Gross Income
(1) public housing authority or community development
Fill in your federal adjusted gross income from:
authority bonds issued by municipalities located in Wis-
• line 37 of your federal Form 1040, consin,
• line 21 of federal Form 1040A, or (2) Wisconsin Housing Finance Authority bonds,
• line 4 of federal Form 1040EZ. (3) Wisconsin municipal redevelopment authority bonds,
(4) Wisconsin higher education bonds,
Exception The federal adjusted gross income that you fill
(5) Wisconsin Housing and Economic Development
in on line 1 may not be the same as the amount reported as
Authority bonds issued on or after December 11, 2003,
adjusted gross income on your federal Form 1040. Differences
to fund multifamily affordable housing or elderly housing
may occur because Wisconsin generally uses the provisions
projects,
of federal law amended to December 31, 2006. Laws enacted
after December 31, 2006, may not be used for Wisconsin. (6) Wisconsin Housing and Economic Development Author-
ity bonds issued before January 29, 1987, except business
A comprehensive list of provisions of federal law that may not
development revenue bonds, economic development
be used for Wisconsin for 2008 can be found in the instructions
revenue bonds, and CHAP housing revenue bonds,
for Wisconsin Schedule I. Following is a partial list of the items
(7) public housing agency bonds issued before January 29,
that may affect the largest number of taxpayers.
1987, by agencies located outside Wisconsin where the
• Educator expenses. interest therefrom qualifies for exemption from federal
taxation for a reason other than or in addition to section
• Tuition and fees deduction.
103 of the IRC,
• Increase in sec. 179 expensing.
(8) local exposition district bonds,
• Deduction for health savings accounts and related items.
(9) Wisconsin professional baseball park district bonds,
• Exclusion for 50% of the gain from the sale or exchange of (10) bonds issued by the Government of Puerto Rico, Guam,
qualified small business stock. the Virgin Islands or, for bonds issued after October 16,
2004, the Government of American Samoa,
10. Line Instructions
10
Line 2 instructions – continued Line 4 instructions – continued
(11) local cultural arts district bonds, • The total amount of labor and management which is
necessary for such a farming operation in the area.
(12) Wisconsin professional football stadium bonds, and
(13) Wisconsin Aerospace Authority bonds. In order to be considered to be actively engaged in a farming
operation, you must have (1) a share of the profits or losses
Interest from these sources is exempt from Wisconsin income
from the farming operation which is commensurate with
tax whether received by a direct owner of these securities
your contributions to the operation, and (2) contributions
or by a shareholder in a mutual fund which invests in these
to the farming operation which are at risk.
securities.
Your combined net losses from farming operations in which
Line 3 Capital Gain / Loss Addition you are not actively engaged in farming are limited if your
If your federal adjusted gross income includes capital gains nonfarm Wisconsin adjusted gross income is more than
and/or losses (see line 13, Form 1040), you must complete $55,000 ($27,500 if married filing separately).
Schedule WD.
To figure your combined net losses from farming op-
Schedule WD determines whether any capital gain/loss addi- erations, add together any losses you have from farming
tion must be reported on line 3. For example, after completing operations in which you were not actively engaged (for
Schedule WD, you may be required to include an amount as example, these could be losses from a farm partnership or
an addition to income on line 3 because Wisconsin law limits tax-option (S) corporation). Do not reduce these losses by
the deduction for a net capital loss to $500. any net farm gains. If the total of these losses is more than
the maximum allowable loss shown in the tables below,
Note If the only amount reported on line 13 of Form 1040 include the excess on line 4.
(line 10 of Form 1040A) is a capital gain distribution from a
Example A single taxpayer reports a loss of $25,000 on
mutual fund or real estate investment trust and you have no
Schedule E from a farm partnership (the taxpayer is not
Wisconsin capital loss carryover, do not complete line 3. See
actively engaged in this farming operation), and a profit of
line 10 instructions.
$5,000 from the rental of farmland. The taxpayer’s nonfarm
Wisconsin adjusted gross income is $60,000. Therefore,
Line 4 Other Additions
only $20,000 of the $25,000 farm loss may be deducted.
Fill in the code number and amount of any of the additions
The taxpayer must fill in code 01 and $5,000 in the space
described below that apply to you. The code number is printed
provided on line 4.
to the left of the various additions. For example, if you are mak-
ing an addition for a federal net operating loss carryover, you
Farm Loss Limits –
would fill in the numbers 02 in the code number space , Single persons and married persons
and fill in the amount of your federal net operating loss car- filing joint return
ryover on the line next to the code number space. Also, fill in Nonfarm Wisconsin
the total of all your additions on line 4. Adjusted Gross Income
But Not Maximum
Note See Additions To or Subtractions From Income on More Than More Than Allowable Loss
page 20 for information on other items which may have to be $ 0 . . . . . .$ 55,000 . . . . . . . . . . . Full Amount
55,000 . . . . . . . .75,000 . . . . . . . . . . . . . $0,000
included on line 4.
75,000 . . . . . . .100,000 . . . . . . . . . . . . . . 17,500
100,000 . . . . . . .150,000 . . . . . . . . . . . . . . 15,000
01 Farm Losses An addition may be required if farm losses 150,000 . . . . . . .00,000 . . . . . . . . . . . . . . 1,500
00,000 . . . . . . .50,000 . . . . . . . . . . . . . . 10,000
were deducted on your federal tax return and you were not
50,000 . . . . . . .00,000 . . . . . . . . . . . . . . . 7,500
actively engaged in the farming operations that produced 00,000 . . . . . . .600,000 . . . . . . . . . . . . . . . 5,000
those losses. 600,000 . . . . . . . . . . . . . . . . . . . . . . . . . . . No Loss
To be “actively engaged in farming” with respect to a farm- Farm Loss Limits –
ing operation, you must make a significant contribution of Married persons filing separate returns
(1) capital, equipment, or land, or a combination of capital, (including married filing as head of household)
equipment, or land; and (2) active personal labor or active Nonfarm Wisconsin
Adjusted Gross Income
personal management, or a combination of both.
But Not Maximum
More Than More Than Allowable Loss
Factors you must take into consideration in determining
$ 0 . . . . . .$ 7,500 . . . . . . . . . . . Full Amount
if you contribute a significant amount of active personal
7,500 . . . . . . . .7,500 . . . . . . . . . . . . . $10,000
labor or active personal management include: 7,500 . . . . . . . .50,000 . . . . . . . . . . . . . . . 8,750
50,000 . . . . . . . .75,000 . . . . . . . . . . . . . . . 7,500
• The type of crops and livestock produced;
75,000 . . . . . . .100,000 . . . . . . . . . . . . . . . 6,50
• The normal and customary farming practices of the area; 100,000 . . . . . . .15,000 . . . . . . . . . . . . . . . 5,000
15,000 . . . . . . .150,000 . . . . . . . . . . . . . . . ,750
and
150,000 . . . . . . .00,000 . . . . . . . . . . . . . . . ,500
00,000 . . . . . . . . . . . . . . . . . . . . . . . . . . . No Loss
11. Line Instructions 11
Line 4 instructions – continued Line 4 instructions – continued
02 Federal Net Operating Loss Carryover Fill in any 08 Dairy and Livestock Farm Investment Credit Fill in the
amount deducted as a federal net operating loss carryover. amount of dairy and livestock farm investment credit you
(See the instructions for line 11, Item 10, for information computed for 2008. The amount of your credit is income
about the Wisconsin net operating loss carryforward.) and must be reported on Form 1. This is true even if you
cannot take the full credit this year and must carry part
03 Income (Lump-Sum Distributions) Reported on of it forward. (Note Do not include on line 4 any credit
Federal Form 4972 Income from a lump-sum distribu- passed through to you from a partnership, limited liability
tion is taxable to Wisconsin. If you reported a lump-sum company, or tax-option (S) corporation. This will be ac-
distribution on federal Form 4972, you must also include counted for when you make the adjustment described in
the distribution in Wisconsin income. Fill in the total of Items 51 and 52 on page 20.)
(1) the capital gain part of the lump-sum distribution from
09 Dairy Manufacturing Facility Investment Credit Fill
line 6 of Form 4972 and (2) the taxable amount from
line 10 of Form 4972. You may reduce this amount by in the amount of dairy manufacturing facility investment
any federal estate tax on line 18 of Form 4972. credit you computed for 2008. The amount of your credit
is income and must be reported on Form 1. (Note Do not
CAUTION If the amount on line 10 of Form 4972 was include on line 4 any credit passed through to you from
computed using the rules for multiple recipients of a lump- a partnership, limited liability company, or tax-option (S)
sum distribution, include only your share of the taxable corporation. This will be accounted for when you make the
amount on line 10 less your share of any federal estate tax adjustment described in Items 51 and 52 on page 20.)
attributable to the lump-sum distribution on line 18.
10 Internet Equipment Credit Fill in the amount of Internet
Note No portion of a lump-sum distribution may be
equipment credit you computed for 2008. The amount of
reported as a capital gain on Wisconsin Schedule WD.
your credit is income and must be reported on Form 1. This
is true even if you cannot take the full credit this year and
04 Farmland Preservation Credit and Farmland Tax
must carry part of it forward. (Note Do not include on line 4
Relief Credit The total amount of farmland preservation
any credit passed through to you from a partnership, limited
credit and farmland tax relief credit you received during
liability company, or tax-option (S) corporation. This will
2008 must be reported as income. Fill in as an addition any
be accounted for when you make the adjustment described
portion of your farmland preservation credit and farmland
in Items 51 and 52 on page 20.)
tax relief credit which was not included as income on your
federal tax return.
11 Film Production Company Investment Credit Fill in
the amount of film production company investment credit
05 Development Zones Credit and Technology Zone Cred-
computed for 2008. The amount of your credit is income
it Fill in the amount of your development zones credit
and must be reported on Form 1. This is true even if you
from Wisconsin Schedule DC and your technology zone
cannot take the full credit this year and must carry part
credit from Schedule TC that you computed for 2008. The
of it forward. (Note Do not include on line 4 any credit
amount of your credit is income and must be reported on
passed through to you from a partnership, limited liability
your Wisconsin Form 1. This is true even if you cannot take
company, or tax-option (S) corporation. These will be ac-
the full credit this year and must carry part of it forward.
counted for when you make the adjustment described in
(Note Do not include on line 4 any credit passed through
Items 51 and 52 on page 20.)
to you from a partnership, limited liability company, or
tax-option (S) corporation. These will be accounted for
12 Film Production Services Credit Fill in the amount of
when you make the adjustment described in Items 51 and
film production services credit computed for 2008. The
52 on page 20.)
amount of your credit is income and must be reported on
Form 1. This is true even if you cannot take the full credit
06 Excess Distribution From a Passive Foreign Investment
this year and must carry part of it forward. (Note Do not
Company Fill in the excess distribution from a passive
include on line 4 any credit passed through to you from
foreign investment company that was not included in
a partnership, limited liability company, or tax-option (S)
federal adjusted gross income (see federal Form 8621).
corporation. These will be accounted for when you make
the adjustment described in Items 51 and 52 on page 20.)
07 Enterprise Zone Jobs Credit Fill in the amount of enter-
prise zone jobs credit you computed for 2008. The amount
13 Manufacturing Investment Credit Fill in the amount of
of your credit is income and must be reported on Form 1.
manufacturing investment credit computed for 2008. The
(Note Do not include on line 4 any credit passed through
amount of your credit is income and must be reported on
to you from a partnership, limited liability company, or tax-
Form 1. This is true even if you cannot take the full credit
option (S) corporation. This will be accounted for when
this year and must carry part of it forward. (Note Do not
you make the adjustment described in Items 51 and 52 on
include on line 4 any credit passed through to you from
page 20.)
12. Line Instructions
1
Line 4 instructions – continued
a partnership, limited liability company, or tax-option (S) Line 8 Unemployment Compensation
corporation. These will be accounted for when you make You may have a different amount of unemployment
the adjustment described in Items 51 and 52 on page 20.) compensation taxable for Wisconsin and federal purposes.
Complete the worksheet below to see if you can subtract
14 Ethanol and Biodiesel Fuel Pump Credit Fill in the any portion of the unemployment compensation which you
amount of ethanol and biodiesel fuel pump credit computed included as income on your federal tax return.
for 2008. The amount of your credit is income and must
be reported on Form 1. This is true even if you cannot take
Unemployment Compensation Worksheet
the full credit this year and must carry part of it forward.
(Note Do not include on line 4 any credit passed through Check only one box.
to you from a partnership, limited liability company, or A. Married filing a joint return – write $18,000 on line 3 below.
tax-option (S) corporation. These will be accounted for B. Married not filing a joint return and lived with your spouse
at any time during the year – write -0- on line below.
when you make the adjustment described in Items 51 and
C. Married not filing a joint return and DID NOT live with your
52 on page 20.)
spouse at any time during the year – write $1,000 on
line below.
15 Interest and Rental Expenses Paid to Related Entities D. Single – write $1,000 on line below.
Fill in the amount deducted or excluded from your federal
income for interest and rental expenses paid, accrued, or 1. Fill in unemployment compensation
incurred to a related entity (person or business entity). You from line 19 of federal Form 1040
(line 1 of Form 1040A, or line of
must make this addition even though you may be eligible
Form 1040EZ) ................................... 1.
for a deduction for these expenses. If you are eligible for a
2. Fill in your federal adjusted
deduction, you may then make a subtraction for the amount
gross income from line 1 of
that qualifies (see Item 21 on page 20).
Form 1 .............................................. .
. Fill in –
16 Amounts Not Deductible for Wisconsin Fill in any
• $18,000 if you checked box A; or
amount deducted in computing your federal adjusted gross • -0- if you checked box B; or
income that is not allowed as a deduction for Wisconsin. • $12,000 if you checked box C or D .. .
4. Fill in taxable social security
Example You deducted a passive activity loss on your
benefits, if any, from line 20b of
federal return for losses incurred when you were a resi-
federal Form 1040 (line 14b of
dent of another state. The passive activity losses were not Form 1040A) ............................... 4.
allocable to Wisconsin. The passive activity losses are not
5. Fill in taxable refunds, credits,
deductible for Wisconsin and must be included on line 4. or offsets, if any, from line 10 of
federal Form 1040 ....................... 5.
Line 6 State Income Tax Refund 6. Add lines , 4, and 5 ......................... 6.
Refunds of state and local income taxes are not taxable for Wis- 7. Subtract line 6 from line 2. If zero or
consin. Fill in the amount from federal Form 1040, line 10. less, fill in ‑0‑ here and on line 9 of
this worksheet and do not complete
Line 7 United States Government Interest line 8. Otherwise, go on to line 8 ........ 7.
8. Fill in one-half of the amount
Fill in the amount of interest on U.S. bonds and interest and
on line 7 ............................................. 8.
dividends of certain U.S. government corporations that is in-
cluded on line 1 of Form 1. This income is not taxable. 9. Fill in the smaller amount of line 1
or line 8. ............................................. 9.
A mutual fund may invest in U.S. government securities. If 10. Subtract line 9 from line 1. Fill in
this amount on line 8 of Form 1 as
it does, a portion or all of its ordinary dividend may not be
your subtraction for unemployment
taxable by Wisconsin. If a mutual fund advised you that all or
compensation. If lines 1 and 9 are
a portion of its ordinary dividend is from investments in U.S. equal, fill in ‑0‑ ................................. 10.
government securities, include that portion on line 7.
CAUTION Do not fill in on line 7, interest from Ginnie Mae
Line 9 Social Security Adjustment
(Government National Mortgage Association) securities and
other similar securities which are “guaranteed” by the United Social security benefits are not taxable for Wisconsin. You may
States government. You must include interest from these subtract any social security benefits that were taxable on your
securities in your Wisconsin taxable income. federal return. Fill in on line 9 the amount from line 20b of
federal Form 1040 or line 14b of Form 1040A.
