Wisconsin Wisconsin Form 1 Instructional Booklet
Extracted from PDF file 2020-wisconsin-income-tax-instructions.pdf, last modified February 2021
Wisconsin Form 1 Instructional BookletImportant Notice for Persons Claiming the Earned Income Tax Credit Federal law, as explained below, provides that if a taxpayer's earned income for 2020 is less than the earned income for 2019, the taxpayer may elect to use their 2019 earned income to compute the 2020 earned income tax credit. Wisconsin has not adopted this federal provision. Therefore, if a taxpayer elected to use their 2019 earned income to compute their 2020 federal earned income tax credit, they must recompute the federal earned income tax credit using their 2020 earned income amount for Wisconsin purposes, as explained on page 25 of the Form 1 instructions. This federal provision was enacted in section 211 of division EE of The Consolidated Appropriations Act (CAA), 2021 (Public Law 116-260) on December 27, 2020. Additional Adjustments Required as a Result of CAA • Wisconsin did not adopt sections 276(a) and 278(a) of Division N of Public Law 116-260, relating to the first round of Paycheck Protection Program (PPP) loan proceeds. Taxpayers may exclude from income the forgiveness of debt on these PPP loan proceeds. However, taxpayers may not deduct expenses paid with PPP loan proceeds that have been forgiven or are reasonably expected to be forgiven. The expenses must be added back to Wisconsin income in the year incurred or paid. • Wisconsin did not adopt section 276(b) of Division N of Public Law 116-260, relating to forgiveness of subsequent PPP loans. Taxpayers may deduct expenses paid with subsequent PPP loan proceeds that would otherwise be deductible. However, taxpayers must include in Wisconsin income subsequent PPP loan proceeds that have been forgiven. • Wisconsin did not adopt section 278(b) of Division N of Public Law 116-260, relating to emergency grants of economic injury disaster loans (EIDL) and targeted EIDL advances. Taxpayers may deduct expenses paid with EIDL grants or advances that would otherwise be deductible. However, taxpayers must include the grants or advances in Wisconsin gross income. • Wisconsin did not adopt section 278(c) of Division N of Public Law 116-260, relating to subsidy for certain loan payments. Taxpayers may deduct expenses paid with the subsidy that would otherwise be deductible. However, taxpayers must include the subsidy in Wisconsin gross income. • Wisconsin did not adopt section 278(d) of Division N of Public Law 116-260, relating to grants for shuttered venue operations. Taxpayers may deduct expenses paid with the grants that would otherwise be deductible. However, taxpayers must include the grants in Wisconsin gross income. Note: These additional adjustments may be made on lines 2 h, i, and j or lines 4 g, h, and i of Schedule I, Adjustments to Convert 2020 Federal Adjusted Gross Income and Itemized Deductions to the Amounts Allowable for Wisconsin. See the Schedule I instructions for additional information on making these adjustments. Itemized Deduction Credit If the $300 above-the-line deduction (sec. 2204 of division A of Public Law 116-136) is claimed on line 10b of federal Form 1040, that amount may not be claimed as an itemized deduction for federal purposes. Wisconsin adopted this federal provision. As a result, the amount may not be claimed as an itemized deduction for purposes of Wisconsin's itemized deduction credit. See page 15 of the Form 1 instructions. 1 Wisconsin Income Tax 2020 Form 1 Instructions WI file is: FREE: file your state tax return at no charge ACCURATE: it does the math for you SECURE: safe and secure website Visit revenue.wi.gov to file your Wisconsin state tax return online for FREE. Click on WI file to get started! NEW IN 2020 Tax Rates Reduced – The tax rate for the first and second tax bracket is reduced from 4% to 3.54% and from 5.21% to 4.65%, respectively. This rate reduction is built into the tax table on pages 36-41. Form 1 Redesigned – The format of Form 1 has changed this year. The addition and subtraction modifications previously listed on Form 1 have moved to two new schedules: Schedules AD, Additions to Income, and SB, Subtractions from Income. See these new schedules if you are claiming any of these addition or subtraction modifications. College Savings Account – The subtraction for contributions to a Wisconsin state-sponsored college savings account is increased to $3,340 per beneficiary ($1,670 per beneficiary if you are married filing a separate return or a divorced parent). See page 6 of the Schedule SB instructions. Tuition and Fee Expenses – The subtraction for tuition and fees is decreased to $6,972 per student. The phase-out range has been increased. See page 4 of the Schedule SB instructions. REMINDERS IRS Adjustments – If the IRS adjusted any of your federal income tax returns, you must notify the department within 90 days of any adjustment that affects your Wisconsin income tax returns. See page 8. Tax Returns Are Due: Thursday April 15, 2021 Need Help With Your Taxes? You may be eligible for free tax help. See page 2 for: • Who can get help • How to find a location • What to bring with you Para Assistencia Gratuita en Español Ver página 2 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 sec. 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. I-111 (R. 02-21) 2 Table of Contents Page General Instructions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 • Which Form to File . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 • Who Must File . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 • Age . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 • Other Filing Requirements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 • Who Should File . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 • How To Get An Extension Of Time To File . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 • Filing Your Return . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 • Questions About Refunds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 • Amending Your Return . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 Special Instructions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 Tax Help / Resources . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 Line Instructions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 2020 Standard Deduction Table . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34 2020 Tax Table . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36 2020 Tax Computation Worksheet . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42 Wisconsin School District Number . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43 Index . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44 Servicio en Español Para ayuda gratuita para la declaración de sus impuestos y de el Crédito por Vivienda Familiar, llame al “211” para encontrar un sitio de Asistencia de Voluntarios para Impuestos (Volunteer Income Tax Assistance también conocido como VITA) cerca de usted. Muchos lugares ofrecen servicios en español. Para respuestas a las preguntas sobre impuestos, por favor llame el Departamento de Impuestos al (608) 266‑2486 para impuestos individuales y al (608) 266‑2776 para impuestos de negocios. Oprima el “2” para ayuda en español. Para más información, visite revenue.wi.gov, en el vinculo (link) “En Español” usted encontrará información sobre el Credito por Ingreso de Trabajo, información del Crédito por Vivienda Familiar, y mucho más – todo disponible en español. Free Tax Preparation Available (commonly referred to as VITA or TCE) Need help filing your taxes? Wisconsin residents can have their taxes prepared for free at any IRS sponsored Volunteer Income Tax Assistance (VITA) site or at any AARP sponsored Tax Counseling for the Elderly (TCE) site. These two programs have helped millions of individuals across the country in preparing their taxes. Trained volunteers will fill out your tax return. Many sites will even e‑file your return. Who can use these services? • Low to moderate income individuals • Individuals who qualify for the homestead credit or the earned income tax credit • Individuals with disabilities • Elderly individuals What should you bring? • W-2 wage and tax statements • Information on other sources of income and any deductions • Photo ID of taxpayer(s) • Social security cards of taxpayer(s) and dependents • If you are claiming a homestead credit, bring a • Both spouses must be present to file a joint return completed rent certificate or a copy of your 2020 property tax bill, a record of any Wisconsin Works (W2) payments received in 2020, and a statement from your physician or the Veteran’s Administration, or a document from the Social Security Administration if disabled and under age 62 VITA and TCE locations: • In Wisconsin, call 1‑800‑906‑9887 • Call the AARP at 1‑888‑227‑7669 • Visit revenue.wi.gov and search “VITA sites” • Call “211” for local free tax sites General Instructions 3 Which Form to File You must file Form 1 if you were a full-year resident of Wisconsin. You must file Form 1NPR if you: • Were domiciled* in another state or country at any time during the year, OR • Are married filing a joint return and your spouse was domiciled* in another state or country at any time during the year. *Your domicile is your true, fixed, and permanent home to which, whenever absent, you intend to return. You can be physically present or residing in one locality but maintain your domicile in another. Your domicile, once established, does not change unless all three of the following circumstances occur or exist: (1) You intend to abandon your old domicile and take actions consistent with that intent (2) You intend to acquire a new domicile and take actions consistent with that intent (3) You are physically present in the new domicile Who Must File Refer to the table to see if you are required to file a return for 2020. Filing status Age as of December 31, 2020 You must file if your gross income* (or total gross income of a married couple) during 2020 was: Single Under 65 65 or older $11,750 or more $12,000 or more Married-filing joint return Both spouses under 65 One spouse 65 or older Both spouses 65 or older $21,870 or more $22,120 or more $22,370 or more Married-filing separate return Under 65 65 or older $10,420 or more $10,670 or more (applies to each spouse individually) Head of household Under 65 $14,980 or more $15,230 or more 65 or older * Gross income means all income (before deducting expenses) reportable to Wisconsin. The income may be received in the form of money, property, or services. It does not include items that are exempt from Wisconsin tax. For example, it does not include social security benefits or U.S. government interest. Age If your birthday falls on January 1, 2021, you are considered to be a year older as of December 31, 2020. Example: If you were born on January 1, 1956, you are considered to be age 65 as of December 31, 2020. Other Filing Requirements You may have to file a return even if your income is less than the amounts shown on the table. You must file a return for 2020 if: • You could be claimed as a dependent on someone else’s return and either of the following applies: (1) Your gross income was more than $1,100 and it included at least $351 of unearned income, or (2) Your gross income (total unearned income and earned income) was more than – $11,050 if single, $14,280 if head of household, $20,470 if married filing jointly, or $9,720 if married filing separately. Unearned income includes taxable interest, dividends, capital gain distributions, and taxable scholarship and fellowship grants that were not reported to you on a Form W‑2. Earned income includes wages, tips, self-employment income, and scholarship and fellowship grants that were reported to you on a Form W‑2. • You owe a penalty on an IRA, retirement plan, Coverdell education savings account (excess contribution), ABLE account, health savings account, or Archer medical savings account. • You were a nonresident or part-year resident of Wisconsin for 2020 and your gross income was $2,000 or more. If you were married, you must file a return on Form 1NPR if the combined gross income of you and your spouse was $2,000 or more. A return does not have to be filed by a nonresident of Wisconsin if all income is exempt from tax as disaster relief work performed during a state of emergency declared by the Governor. For further information, see Publication 411, Disaster Relief. General Instructions 4 Who Should File Even if you do not have to file, you should file to get a refund if: • You had Wisconsin income tax withheld from your wages • You paid estimated taxes for 2020 • You claim the earned income credit or the veterans and surviving spouses property tax credit How To Get An Extension Of Time To File Your return is due April 15, 2021. If you cannot file on time, you can get an extension. You can use any federal extension provision for Wisconsin, even if you are filing your federal return by April 15. How to get an extension You do not need to submit a request for an extension to us prior to the time you file your Wisconsin return. When you file your Form 1 enclose either of the following: • A copy of your federal extension application (for example, Form 4868) • A statement indicating which federal extension provision you want to apply for Wisconsin (for example, the federal automatic 6‑month extension provision) Note You will owe interest on any tax that you have not paid by April 15, 2021. This applies even though you may have an extension of time to file. If you do not file your return by April 15, 2021, or during an extension period, you may have to pay additional interest and penalties. If you expect to owe tax with your return, you can avoid the 1% per month interest charge during the extension period by paying the tax by April 15, 2021. Submit the payment with a 2020 Wisconsin Form 1‑ES. You can get this form from our website at revenue.wi.gov or at any Department of Revenue office. Use Form 1‑ES to make an extension payment even if you will be filing your return electronically – do not use Form EPV. Exception: You will not be charged interest during an extension period if (1) you served in support of Operation Freedom’s Sentinel in the United States, (2) you qualify for a federal extension because of service in a combat zone or contingency operation, or (3) you qualify for a federal extension due to a federally-declared disaster. See Special Conditions below. If you were a farmer or fisher and you did not make estimated tax payments, you must file your return and pay any tax due by March 1, 2021, to avoid paying interest for underpayment of estimated tax. Farmers and fishers are individuals who earn at least two-thirds of their gross income (gross income of both spouses if married filing a joint return) from farming or fishing. Special Conditions A “Special Conditions” section is located to the right of the Filing Status section on page 1 of Form 1. If you have an extension of time to file due to service in support of Operation Freedom’s Sentinel in the United States, enter “01” in the Special Conditions box. If you qualify for an extension because of service in a combat zone or contingency operation, enter “02” in the box. If you qualify for an extension because of a federally-declared disaster, enter “03” in the box and indicate the specific disaster on the line provided. Filing Your Return Preparing to file Before filing your return, follow the steps below in the order listed: 1. Gather your records – Make sure that you have all of your income expense records (for example, wage, interest, and dividend statements) 2. Electronic filing (e-file) vs. paper filing – If you e-file, follow the instructions included in your software; otherwise, for paper filing, continue with step 3 3. Complete federal return – Complete your federal return and its supporting schedules; however, if you are not required to file a federal return, list the sources and amounts of your income and deductions on a separate sheet Electronic filing (E‑filing) Electronic filing is the fastest way to get your federal and state income tax refunds. We can deposit your Wisconsin refund directly into a financial institution account. You may pay by electronic funds transfer if you file electronically. File early and schedule payment as late as April 15. Go to revenue. wi.gov/Pages/FAQs/pcs-e-faq.aspx for more information. There are several options to file your Wisconsin income tax return electronically: • Wisconsin e-file – Available for free on the Department of Revenue website at revenue.wi.gov/Pages/WI-efile/home.aspx • Tax professional – Visit our website at revenue.wi.gov/Pages/OnlineServices/city-home.aspx for information on finding a tax professional • Tax preparation software – Purchase off-the-shelf tax preparation software to install on your computer (see revenue.wi.gov/Pages/OnlineSer vices/offshelf.aspx), or connect to one of the private vendor websites that offer electronic filing (see revenue.wi.gov/Pages/OnlineSer vices/webased.aspx) General Instructions 5 Paper filing Electronic filing (e-filing) is the fastest way to receive your refund. However, if you paper file, there are several things you can do to ensure you receive your refund faster. Important information: • • • • • • • • • • • • • Send original copies Use black ink Clearly write your name and address using capital letters (do not use mailing labels) Do not use commas and dollar signs as they can be misread when scanned Round amounts to whole dollars Do not add cents in front of the preprinted zeros on entry lines To indicate a negative number, use a negative sign (for example, -8300 not (8300)) Print your numbers clearly: Do not use: If you make a mistake, erase or start over (do not cross out entries) Put entries on the lines, and do not write in the margins, above or below the lines Lines where no entry is required should be left blank (do not enter zeros) Do not draw vertical lines in entry fields (they can be read as a “ı” when scanned) Do not staple your return as stapling will delay the processing of your return and any refund Filing your return When filing your return, complete the steps below in the order listed: 1. Complete Wisconsin return – Follow the line instructions as you fill in your return and sign your complete return (a joint return must be signed by both spouses) 2. Check and assemble return – Check your return for any errors or missing documents and see below for information on how to assemble your return 3. Make a copy – Make a copy of your return for your records 4. Mail return – Mail your return and all required documents (see page 6 for the address) Assembling your return Begin by putting the four pages of Form 1 in numerical order. Then, attach, using a paper clip, the following in the order listed. Note: If filing Form 804, Claim for Decedent's Wisconsin Income Tax Refund, with the return, place Form 804 on top of Form 1. Do not attach a Form W-RA if you are filing your return on paper. Form W-RA is used only when submitting information for an electronically-filed return. 1. Payment – If you owe an amount with your return, paper clip your payment to the front of Form 1, unless you are paying by credit card or online. 2. Wisconsin schedules – Copies of appropriate Wisconsin schedules and supporting documents, such as Schedule H or H‑EZ (homestead credit), Schedule FC or FC‑A (farmland preservation credit), or Schedule CR. If you are reporting income and expenses of a disregarded entity, attach Schedule DE, Disregarded Entity Schedule. 3. Amended return – Enclose Schedule AR, Explanation of Amended Return, with your amended return and all supporting forms and schedules for items changed. Don’t send a copy of your original return. 4. Forms W-2 or 1099 – The appropriate copy of each of your withholding statements (Forms W‑2, W‑2G, 1099‑G, 1099‑R, 1099‑MISC, and 1099-NEC). 5. Federal return – A complete copy of your federal return (Form 1040 or 1040-SR) and its supporting schedules and forms (such as federal Form 8886, Reportable Transaction Disclosure Statement.) 6. Extension form or statement – A copy of your federal extension application form or required statement if you are filing under an extension of time to file. 7. Divorce decree – • Persons divorced after June 20, 1996, who compute a refund - If your divorce decree apportions any tax liability owed to the department to your former spouse, enclose a copy of the decree with your Form 1. Enter “04” in the Special Conditions box on page 1 of Form 1. This will prevent your refund from being applied against such tax liability. • Persons divorced who file a joint return – If your divorce decree apportions any refund to you or your former spouse, or between you and your former spouse, the department will issue the refund to the person(s) to whom the refund is awarded under the terms of the divorce. Enclose a copy of the portion of your divorce decree that relates to the tax refund with your Form 1. Enter “04” in the Special Conditions box on page 1 of Form 1. 8. Injured spouse – If you are filing federal Form 8379, Injured Spouse Allocation, enclose a copy with your Form 1. Enter “05” in the Special Conditions box on page 1 of Form 1. CAUTION Be sure to file all four pages of Form 1. Send the original of your return. Do not send a photocopy. General Instructions 6 Where to File Mail your return (an original return or amended return) to the Wisconsin Department of Revenue at: (if tax is due) PO Box 268 Madison WI 53790-0001 (if refund or no tax due) PO Box 59 Madison WI 53785-0001 (if homestead credit claimed) PO Box 34 Madison WI 53786-0001 Envelopes without enough postage will be returned to you by the post office. Your envelope may need additional postage if it contains more than five pages or is oversized (for example, it is over ¼” thick). Also, include your complete return address. Private Delivery Services You can use certain private delivery services approved by the Internal Revenue Service (IRS) to meet the timely filing rule. The approved private delivery services are listed in the instructions for your federal tax form. Items must be delivered to Wisconsin Department of Revenue, 2135 Rimrock Rd., Madison WI 53713. Private delivery services cannot deliver items to PO boxes. The private delivery service can tell you how to get written proof of the mailing date. Questions About Refunds Call: (608) 266‑8100 in Madison, Visit our website at: revenue.wi.gov (414) 227‑4907 in Milwaukee, or 1‑866‑WIS‑RFND (1‑866‑947‑7363) toll-free within the U.S. or Canada If you need to contact us about your refund, please wait at least 12 weeks after filing your Form 1. Refund information may not be available until that time. The department may not issue a refund before March 1 unless both the individual and the individual’s employer have filed all required returns and forms with the department for the taxable year for which the refund was claimed. You may call one of the numbers listed above or write to: Mail Stop 5-77 Wisconsin Department of Revenue PO Box 8949 Madison WI 53708-8949 If you call, you will need your social security number and the dollar amount of your refund. An automated response is available when you call one of the numbers listed above. If you need to speak with a person, assistance is available Monday through Friday from 7:45 a.m. to 4:15 p.m. by calling (608) 266‑2486 in Madison (long-distance charges, if applicable, will apply). You may also get information on your refund using our secure website at revenue.wi.gov. Amending Your Return File an amended return only after you file your original return. Generally, a claim for refund must be filed within 4 years after the unextended due date of your original return (for example, April 15, 2025, for 2020 calendar-year returns). However, a claim for refund to recover all or part of any tax paid as a result of an office or field audit may be filed within 4 years after the date assessed. This applies only if you paid the tax and did not file a petition for redetermination (written appeal). If you filed an amended return with the IRS or another state, you generally must also file an amended Wisconsin return within 90 days. You must file an amended Wisconsin return if the changes affect your Wisconsin income, any credit, or tax payable. You should also file an amended Wisconsin return to claim a refund or pay any additional tax due even though you are not amending your federal or other state return. If your original return was filed on Form 1, you would file an amended return using Form 1 and checking the amended return space at the top of page 1. Exception: If you incurred a net operating loss (NOL) on your 2020 Form 1 and elect to carry the NOL back to 2018 and 2019, you must file Form X-NOL, Carryback of Wisconsin Net Operating Loss, for the appropriate year to amend your return and claim a refund. Be sure to enclose Schedule AR with your amended return to explain all changes and the reason for the change. Check the space on Form 1 to indicate your filing status on the amended return. If you are changing from separate returns to a joint return, both of you must sign the amended return. If there is any tax due, it must be paid in full. You cannot change from joint to separate returns after the due date for filing your original return has passed. General Instructions 7 If you are changing your filing status, the amount to fill in on line 1 of Form 1 as federal adjusted gross income must be based on the same filing status used for Wisconsin. For example, you and your spouse both originally filed Form 1 as married filing a separate return. You are amending to change your filing status to married filing a joint return. The amount to fill in on line 1 must be taken from a federal return based on a married filing joint status. If you did not file a joint federal return, you should prepare a pro forma federal return using a married filing joint return status. The federal adjusted gross income and other amounts from this pro forma return are then used to complete the amended return. Follow the Form 1 instructions to complete your amended return. If you are changing an amount on any line of Form 1, fill in the corrected amount on that line. If you are not changing an amount on a line, fill in the amount from your 2020 return as originally filed or as you later amended it. If your latest filed return was changed or audited by the department, use the corrected figures from the adjustment notice. Credit Repayments If you are required to repay a Wisconsin credit, you must amend your Wisconsin return for the year in which you originally claimed the credit to reduce the amount of your credit by your repayment. See below for examples of credits which you may have to repay. • State historic rehabilitation credit You may have to repay all or part of the state historic rehabilitation credit if you disposed of the property within 5 years after the date on which the preservation or rehabilitation work was complete or the Wisconsin Historical Society determines that you have not complied with all of the requirements. Visit any Department of Revenue office or contact the department’s Customer Service Bureau at (608) 266-2486 for information on determining the amount to be repaid. • Angel investment credit or early stage seed investment credit If an investment for which you claimed the angel investment credit or early stage seed investment credit in a prior year was held for less than three years, you must repay the amount of the credit that you received related to the investment. This does not apply if the investment becomes worthless, as determined by Wisconsin Economic Development Corporation (WEDC), during the 3-year period or if you kept the investment for at least 12 months and a bona fide liquidity event, as determined by WEDC, occurs during the 3-year period. • Supplement to federal historic rehabilitation credit Were you required to repay to the IRS a portion of the federal historic rehabilitation credit? If yes and you claimed the same qualified rehabilitation expenditures for the Wisconsin credit, you must repay to the department a proportionate amount of the Wisconsin credit. Visit any Department of Revenue office or contact the department’s Customer Service Bureau at (608) 266-2486 for information on determining the amount to be repaid. • Low-income housing credit If the qualified basis of the qualified development is less than the amount of the qualified basis of the last day of the immediately preceding taxable year, you must repay an amount equal to the amount you were required to repay to the IRS for the federal low-income housing credit. Applicable Laws and Rules This document provides statements or interpretations of the following laws and regulations in effect as of February 2, 2021: 26 USC 6081, 26 USC 7508A, 26 USC 7508, 26 USC 50, 26 USC 42, 26 USC 265, 26 USC 67, 26 USC 72, 26 USC 530, 26 USC 529A, 26 USC 220, 26 USC 223, 26 USC 4975, 26 USC 6402, and ch. 71, Wis. Stats. Special Instructions 8 Penalties for Not Filing Returns or Filing Incorrect Returns If you do not file an income tax return which you are required to file, or if you file an incorrect return due to negligence or fraud, penalties and interest may be assessed against you. The interest rate on delinquent taxes is 18% per year. Civil penalties can be as much as 100% of the amount of tax not reported on the return. Criminal penalties for failing to file or filing a false return include a fine up to $10,000 and imprisonment. Fraudulent or Reckless Credit Claims Fraudulent or reckless claims for any refundable credit, including, but not limited to, the earned income credit, homestead credit, or the veterans and surviving spouses property tax credit, are subject to filing limitations. If you file a “fraudulent claim,” you will not be allowed to take any refundable credit for 10 years. “Fraudulent claim” means a claim that is false or excessive and filed with fraudulent intent. If you file a “reckless claim,” you will not be allowed to take any refundable credit for 2 years. “Reckless claim” means a claim that was improper, due to reckless or intentional disregard of income tax law or department rules and regulations. You may also have to pay penalties. Internal Revenue Service Adjustments Did the IRS adjust any of your federal income tax returns? If yes, you may have to notify the Department of Revenue of such adjustments. You must notify the department if the adjustments affect your Wisconsin income, any credit, or tax payable. The department must be notified within 90 days after the adjustments are final. You must submit a copy of the final federal audit report by doing one of the following: (1) Including it with an amended return that reflects the federal adjustments (2) Mailing the copy to: Wisconsin Department of Revenue Audit Bureau PO Box 8906 Madison WI 53708-8906 Estimated Tax Payments Required for Next Year If your 2021 Wisconsin income tax return will show a tax balance due to the department of $500 or more, you must do one of the following: • Make estimated tax payments for 2021 in installments beginning April 15, 2021, using Wisconsin Form 1-ES • Increase the amount of income tax withheld from your 2021 pay For example, you may have a tax balance due with your return if you have income from which Wisconsin tax is not withheld. If you do not make required installment payments, you may be charged interest. For more information, contact the department’s Customer Service Bureau at (608) 266‑2486 or visit any Department of Revenue office. If you must file Form 1‑ES for 2021 and do not receive a form in the mail, go to our website at revenue.wi.gov to obtain a personalized copy of Form 1‑ES or contact any Department of Revenue office. Armed Forces Personnel If you were a Wisconsin resident on the date you entered military service, you are considered a Wisconsin resident during your entire military career unless you take action to change your legal residency. For more information, get Fact Sheet 1118, Income Tax Information for Active Military Personnel. Homestead Credit The Wisconsin homestead credit program provides direct relief to homeowners and renters. You may qualify if you were: – At least 18 years old on December 31, 2020 – If you were under age 62, and not disabled, you must have earned income to qualify 9 Special Instructions – A legal resident of Wisconsin for all of 2020 – Not claimed as a dependent on anyone’s 2020 federal tax return (unless you were 62 or older on December 31, 2020) – Not living in tax-exempt public housing for all of 2020 (Note: Some exceptions apply to this rule and are explained in the instructions for the homestead credit schedule) – Not living in a nursing home and receiving medical assistance (Title XIX) when you file for homestead credit – Had total household income, including wages, interest, social security, and income from certain other sources, below $24,680 in 2020 If you (or your spouse if married) claim the veterans and surviving spouses property tax credit or farmland preservation credit, you are not eligible for homestead credit. For more information about homestead credit, contact our Homestead Unit in Madison at (608) 266-8641 or any department office. See page 10 for information on obtaining Schedule H or H‑EZ, which you must complete to apply for the credit. Schedules H and H‑EZ are also available at many libraries. Farmland Preservation Credit The farmland preservation credit program provides an income tax credit to Wisconsin residents who own farmland in Wisconsin. If you claim homestead credit or the veterans and surviving spouses property tax credit, you are not eligible for farmland preservation credit. For more information about farmland preservation credit, contact our Farmland Preservation Unit in Madison at (608) 266‑2442 or visit any department office. See page 10 for information on obtaining Schedule FC or FC‑A, which you must complete to apply for the credit. Death of a Taxpayer A return for a taxpayer who died in 2020 should be filed on the same form which would have been used if he or she had lived. Include only the taxpayer’s income up to the date of his or her death. If there is no estate to probate, a surviving heir may file Form 1 for the person who died. If there is an estate, the personal representative for the estate must file the return. The person filing the Form 1 should sign it and indicate his or her relationship to the person who died (for example, “surviving heir” or “personal representative”). Be sure to fill in the surviving heir’s or personal representative’s mailing address in the address area of Form 1. If the taxpayer did not have to file a return but paid estimated tax or had tax withheld, a return must be filed to get a refund. If you are filing a return on behalf of a decedent, submit Form 804, Claim for Decedent’s Wisconsin Income Tax Refund, with the return and check the box below the special conditions box on page 1 of Form 1. If you did not submit Form 804 with the return, you were issued a refund, and you are not able to cash the refund check, complete Form 804 and mail the completed form and refund check to the address shown on Form 804. If your spouse died during 2020 and you did not remarry in 2020, you can file a joint return. You can also file a joint return if your spouse died in 2021 before filing a 2020 return. A joint return should show your spouse’s 2020 income before death and your income for all of 2020. Write “Filing as surviving spouse” in the area where you sign the return. If someone else is the personal representative, he or she must also sign. If the return for the decedent is filed as single, head of household, or married filing separate, enter “06” in the Special Conditions box and indicate the date of death on the line provided. If a joint return is being filed, enter “06” in the box if it is the primary taxpayer (person listed first on the tax form) who is deceased and the date of death. If it is the spouse who is deceased, enter “07” in the box and the date of death. If both spouses are deceased, enter “08” in the box and both dates of death. If your spouse died before 2020 and you have not remarried, you must file as single or, if qualified, as head of household. For more information about the final income tax return to be filed for a deceased person, visit any Department of Revenue office or call the department’s Customer Service Bureau at (608) 266‑2486. Requesting Copies of Your Returns The Department of Revenue will provide copies of your Wisconsin returns for prior years. Persons requesting copies should complete the online application at tap.revenue.wi.gov/mta, then click on Quick-Links and select Request Tax Record Copy under Income Taxes or Business Taxes. Include all required information and fee with your application. Tax Help / Resources 10 Tax Help and Additional Forms You can get tax help, forms, or publications at any of the following Department of Revenue offices: (Note: Mail completed returns to the address shown on the return.) Customer assistance: phone: (608) 266-2486 email: [email protected] Appleton – 265 W. Northland Ave. Appleton WI 54911-2016 Forms requests: phone: (608) 266-1961 website: revenue.wi.gov Eau Claire – State Office Bldg., 718 W. Clairemont Ave. Eau Claire WI 54701-4558 Madison – Mail Stop 5‑77 2135 Rimrock Rd. PO Box 8949 Madison WI 53708-8949 Green Bay – 200 N. Jefferson St., Rm. 140 Green Bay WI 54301-5189 The Wausau office is open on a limited schedule. Milwaukee – State Office Bldg., 819 N. 6th St., Rm. 408 Milwaukee WI 53203-1606 Internet Address Our website, revenue.wi.gov, has many resources to help you with your tax needs, including: • Complete electronic forms and submit them for free • Download forms, schedules, instructions, and publications • View answers to common questions • Email us comments or request help • File your return electronically TTY Equipment – Telephone help is available using TTY equipment. Call the Wisconsin Telecommunications Relay System at 711. Publications Available The following is a list of some of our publications. These publications give detailed information on specific areas of Wisconsin tax law. You can get these publications from any department office or from our website. Number and Title 102 Wisconsin Tax Treatment of Tax-Option (S) Corporations and Their Shareholders 103 Reporting Capital Gains and Losses for Wisconsin 106 Wisconsin Tax Information for Retirees 109 Tax Information for Married Persons Filing Separate Returns and Persons Divorced in 2020 111 How to Get a Private Letter Ruling From the Wisconsin Department of Revenue 113 Federal and Wisconsin Income Tax Reporting Under the Marital Property Act 117 Guide to Wisconsin Wage Statements and Information Returns 120 Net Operating Losses for Individuals, Estates, and Trusts 121 Reciprocity 122 Tax Information for Part-Year Residents and Nonresidents 125 Credit for Tax Paid to Another State 126 How Your Retirement Benefits Are Taxed 127 Wisconsin Homestead Credit Situations and Solutions 401 Extensions of Time to File 405 Wisconsin Taxation Related to Native Americans 503 Wisconsin Farmland Preservation Credit 600 Wisconsin Taxation of Lottery Winnings 601 Wisconsin Taxation of Pari-Mutuel Wager Winnings Line Instructions 11 Before completing Form 1, first fill in your federal return and its supporting attachments. If you are not required to file a federal return, list the sources and amounts of your income and deductions on a separate sheet and include it with your Form 1. Follow these instructions to complete Form 1. Prepare one copy for your records and another to be filed with the department. Use black ink to complete the copy of Form 1 that you submit to the department. Do not use pencil or red ink. Amended Return If you already filed your original return and this is an amended return, place a check mark where indicated at the top of Form 1. For more information, see Amending Your Return on page 6 of these instructions. Be sure to enclose a copy of Schedule AR with your amended return. Period Covered File your 2020 return for calendar year 2020 and fiscal years that begin in 2020. For a fiscal year, a 5253 week period, or a short-period return, fill in the taxable year beginning and ending dates in the taxable year space at the top of the form. If your return is for a fiscal year, a 52-53 week period, or a short-period, also enter “11” in the Special Conditions box located to the right of the Filing Status section on page 1 of Form 1. Name and Address Print or type your legal name and address. Include your apartment number, if any. If you are married filing a joint return, fill in your spouse’s legal name (even if your spouse did not have any income). If you filed a joint return for 2019 and you are filing a joint return for 2020 with the same spouse, be sure to enter your names and social security numbers in the same order as on your 2019 return. Fill in your PO Box number only if your post office does not deliver mail to your home. Social Security Number Fill in your social security number. You must also fill in your spouse’s social security number if you are married filing a joint return or married filing a separate return (including married filing as head of household). Filing Status Check the appropriate space to indicate your filing status. More than one filing status may apply to you. If it does, choose the one that will give you the lowest tax. If you became divorced during 2020 or are married and will file a separate return (including a married person filing as head of household), you should get Publication 109, Tax Information for Married Persons Filing Separate Returns and Persons Divorced in 2020, for information on what income you must report. Single You may check “single” if any of the following was true on December 31, 2020: • You were never married • You were legally separated under a final decree of divorce or separate maintenance • You were widowed before January 1, 2020, and did not remarry in 2020 Married filing joint return Most married couples will pay less tax if they file a joint return. You may check “married filing joint return” if any of the following is true: • You were married as of December 31, 2020 • Your spouse died in 2020 and you did not remarry in 2020 • You were married at the end of 2020, and your spouse died in 2021 before filing a 2020 return A married couple may file a joint return even if only one had income or if they did not live together all year. However, both spouses must sign the return. If you file a joint return, you may not, after the due date for filing that return, amend it to file as married filing separately. A joint return cannot be filed if you and your spouse have different tax years. If you file a joint return, both you and your spouse are responsible for any tax due on the return. This means that if one spouse does not pay the tax due, the other may have to. Married filing separate return If you file separate returns, you will usually pay more state tax than if you file a joint return. Your tax may be higher on separate returns because: • You cannot take the married couple credit • If you lived with your spouse at any time in 2020, a greater amount of any unemployment compensation that you received may be taxable • You will not qualify for the disability income exclusion • You will not qualify for the earned income credit Line Instructions 12 Head of household If you qualify to file your federal return as head of household, you may also file as head of household for Wisconsin. Unmarried individuals who paid over half the cost of keeping up a home for a qualifying person (such as a child) can use this filing status. Certain married persons who lived apart from their spouse for the last 6 months of 2020 who paid over half the cost of keeping up a home that was the main home of their child, stepchild, or foster child for more than half of 2020 may be able to use this status. If you qualify to file as head of household and are NOT married, check "Head of household, NOT married". If you are married and qualify to file as head of household, be sure to check “Head of household, married". Also fill in your spouse’s name and social security number in the spaces provided. If you do not have to file a federal return, contact any Department of Revenue office to see if you qualify. If you file your federal return as a qualifying widow(er), you may file your Wisconsin return as head of household. Tax District Check either city, village, or town and fill in the name of the Wisconsin city, village, or town in which you lived on December 31, 2020. Also fill in the name of the county in which you lived. School District Number See the list of school district numbers on page 43. Fill in the number of the school district in which you lived on December 31, 2020. Special Conditions Below is a list of the special condition codes that you may need to enter in the special conditions box on Form 1. Be sure to read the instruction on the page listed for each code before using it. Using the wrong code or not using a code when appropriate could result in an incorrect tax computation or a delay in processing your return. Code Code Code Code Code Code Code Code 01 Extension – Operation Freedom’s Sentinel (page 4) 07 Spouse deceased if joint return (page 9) 02 Extension – Combat zone (page 4) 08 Both taxpayers deceased (page 9) 03 Extension – Federally declared disaster (page 4) 11 Fiscal filer (page 11) 04 Divorce decree (page 5) 16 Schedule RT attached (Schedule SB instructions, page 11) Code 05 Injured spouse (page 5) Code 99 Multiple special conditions Code 06 Single decedent or primary taxpayer if joint return (page 9) If more than one special condition applies, only enter “99” in the Special Conditions box and list the separate code numbers on the line next to the box, in addition to any other information required on the line. Rounding Off to Whole Dollars The form has preprinted zeros in the place used to enter cents. All amounts filled in on the form should be rounded to the nearest dollar. Drop amounts under 50¢ and increase amounts from 50¢ to 99¢ to the next whole dollar. For example, $129.39 becomes $129 and $236.50 becomes $237. Round off all amounts. But if you have to add two or more amounts to figure the amount to fill in on a line, include cents when adding and only round off the total. If completing the form by hand, DO NOT USE COMMAS when filling in amounts. Line 1 Federal Adjusted Gross Income Fill in your federal adjusted gross income from line 11 of your federal Form 1040 or 1040-SR. Exception The federal adjusted gross income that you fill in on line 1 may not be the same as the amount reported as adjusted gross income on your federal Form 1040 or 1040-SR. Differences may occur because Wisconsin uses the provisions of federal law amended to December 31, 2017, with certain exceptions. Laws enacted after December 31, 2017, may not be used for Wisconsin unless adopted by the Legislature. A comprehensive list of provisions of federal law that may not be used for Wisconsin for 2020 can be found in the instructions for Wisconsin Schedule I. Following is a partial list of the items that may affect the largest number of taxpayers. • Bonus depreciation • Excess business losses Line Instructions 13 Line 1 Federal Adjusted Gross Income – continued If any provision of federal law which does not apply for Wisconsin purposes affects your federal adjusted gross income, you must complete Wisconsin Schedule I and enclose it with your Form 1. The amount you fill in on line 1 of Form 1 (and amounts filled in on Schedule 1 on page 4 of Form 1) should be the revised amount determined on Schedule I, line 5 (or in Part II of Schedule I.) If Schedule I adjustments in any prior year affect income or expense items, depreciation, amortization, or sec. 179 expense in 2020, you must also make adjustments on Schedule I for 2020. For example, you had to make an adjustment on Schedule I because Wisconsin did not allow bonus depreciation. You must continue to make an adjustment on Schedule I each year until the depreciable asset is fully depreciated or you sell or otherwise dispose of the asset. You may also be required to complete Schedule I if you sold assets during 2020, and the gain or loss from the sale is different for Wisconsin and federal purposes due to Schedule I adjustments made in a prior year. Note: The basis of a depreciated or amortized asset owned on December 31, 2013, or on the last day of your tax year beginning in 2013, is the same for federal and Wisconsin purposes and no further Schedule I adjustment is required. Line 2 Total Additions to Income from Schedule AD Complete Schedule AD if you are affected by any of the modifications listed below. See Schedule AD instructions for more information on these modifications. Enter the amount from Schedule AD, line 33, on line 2. • • • • • • • • • • • • • • State and municipal interest Capital gain/loss addition Nonqualified distributions from Edvest and Tomorrow's Scholar college savings account Nonqualified distributions from ABLE accounts Federal net operating loss deduction Income (lump-sum distributions) reported on federal Form 4972 Excess distribution from a passive foreign investment company Expenses paid to or incurred with related entities Expenses for moving business outside Wisconsin or the United States Differences in federal and Wisconsin basis of assets Differences in federal and Wisconsin basis of partnership interest prior to 1975 Differences in federal and Wisconsin reporting of marital property (community) income Farmland preservation credit Addition required for certain credits – Development zone credit Line 4 – Enterprise zone jobs credit – Manufacturing investment credit – Economic development tax credit – Jobs tax credit – Capital investment credit – Community rehabilitation program credit – Research credit – Manufacturing and agriculture credit – Business development credit – Electronics and information technology manufacturing zone credit – Employee college savings account contribution credit • Tax-option (S) corporation adjustments • Tax-option (S) corporation entity level tax election adjustments • Partnership, limited liability company, trust, or estate adjustments • Partnership entity level tax election adjustments • Other additions to income Total Subtractions from Income from Schedule SB Complete Schedule SB if you are affected by any of the modifications listed below. See the Schedule SB instructions for more information on these modifications. Enter the amount from Schedule SB, line 47, on line 4. • • • • • • • • • • Taxable refund of state income tax United States government interest Unemployment compensation Social security adjustment Capital gain/loss subtraction Medical care insurance Long-term care insurance Tuition and fee expenses Private school tuition Contributions to Edvest or Tomorrow's Scholar college savings account • • • • • • • • • • Distribution of certain earrings from Wisconsin state-sponsored college tuition programs Child and dependent care expenses Military and uniformed services retirement benefits Local and state retirement benefits Federal retirement benefits Railroad retirement benefits, railroad unemployment insurance, and sickness benefits Retirement income exclusion Reserve or National Guard members Combat zone related death Adoption expenses Line Instructions 14 Line 4 Total Subtractions from Income from Schedule SB – continued • • • • • • • • • • • • • • • Contributions to ABLE accounts Disability income exclusion Wisconsin net operating loss deduction Farm loss carryover Native Americans Sale of business assets or assets used in farming to a related person Recoveries of federal itemized deductions Repayment of income previously taxed Human organ donation Expensed paid to related entities Income from a related entity Legislator's per diem Sales of certain insurance policies Physician or psychiatrist grant Olympic, Paralympic, and Special Olympic medals and United States Olympic Committee and Special Line 6 • • • • • • • • • Olympic Board of Directors prize money Differences in federal and Wisconsin basis of assets Differences in federal and Wisconsin basis of partnership interest prior to 1975 Differences in federal and Wisconsin reporting of marital property (community) income Charitable contributions from tax-option (S) corporations Partnership, limited liability company, trust, or estate adjustments Tax-option (S) corporation adjustments Tax-option (S) corporation entity level tax election adjustments Partnership entity level tax election adjustments Other subtractions Standard Deduction Most people can find their standard deduction by using the Standard Deduction Table on page 34. Use the amount on line 5 to find the standard deduction for your filing status. Do not use the table if any one of the following applies: • You (or your spouse if filing a joint return) can be claimed as a dependent on another person’s (for example, parent’s) income tax return. Use the Standard Deduction Worksheet for Dependents to figure your standard deduction. • You are filing a short period income tax return or are filing federal Form 4563 to claim an exclusion of income from sources within U.S. possessions. You are not allowed any amount of standard deduction. Enter 0 (zero) on line 6. Standard Deduction Worksheet for Dependents 1. Earned income * included on line 5 of Form 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1. .00 2. Addition amount . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2. 350.00 3. Add lines 1 and 2. If total is less than $1,100, enter $1,100 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3. .00 4. Using the amount on line 5 of Form 1, fill in the standard deduction for your filing status from table, page 34 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4. .00 5. Fill in the SMALLER of line 3 or 4 here and on line 6 of Form 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5. .00 * Earned income includes wages, salaries, tips, professional fees, and any other compensation received for services you performed. It does not include scholarship or fellowship income that is not reported on a Form W‑2. Line 8 Exemptions Complete lines 8a and 8b. Fill in the number of exemptions on the lines provided. Multiply that number by the amount indicated ($700 or $250), and fill in the result on line a or b, as appropriate. Add lines a and b and fill in on line 8c. Line 8a The exemptions allowed for you (and your spouse, if married) on line 8a are equal to: 0 – If you are single and can be claimed as a dependent on someone else’s return, or if you are married filing jointly and both you and your spouse can be claimed as a dependent on someone else’s return. 1 – If you are single and cannot be claimed as a dependent on someone else’s return, or if you are married filing jointly and either you or your spouse (not both) can be claimed as a dependent on someone else’s return. 2 – If you are married filing jointly and neither you nor your spouse can be claimed as a dependent on someone else’s return. Additional exemptions are allowed equal to the number of dependents you may claim, which is the number of dependents listed on the front of federal Form 1040 or 1040-SR. Enter an additional exemption for each dependent filled in on federal Form 1040 or 1040-SR. Line Instructions 15 Line 8 Exemptions – continued Line 8b If you or your spouse were 65 or older on December 31, 2020, check the appropriate lines. Your number of exemptions is equal to the number of lines checked. You may claim the $250 exemption on line 8b for you and/or your spouse only if you and/or your spouse are 65 years of age or older and are allowed the $700 exemption on line 8a. Line 10 Tax Use the amount on line 9 to find your tax in the Tax Table on pages 36-41. Find your income-level bracket and read across to the column showing your filing status to find your tax. Be sure you use the correct column in the Tax Table for your filing status. Fill in your tax on line 10. EXCEPTION If line 9 is $100,000 or more, use the Tax Computation Worksheet on page 42 to compute your tax. Line 11 Itemized Deduction Credit If the total of certain federal itemized deductions exceeds your Wisconsin standard deduction, you may be able to claim the itemized deduction credit. Complete Schedule 1 on page 4 of Form 1 to see if you can claim the credit. Schedule 1 lists the specific deductions to use from federal Schedule A (Form 1040 or 1040-SR) (see EXCEPTIONS below). If you claimed the $300 above-the-line deduction on line 10b of federal Form 1040, you may not use that amount for purposes of Wisconsin's itemized deduction credit. If you did not itemize deductions for federal tax purposes, use the amounts which would be deductible if you had itemized deductions. To determine the amounts to use, complete a federal Schedule A (Form 1040 or 1040-SR). Write “Wisconsin” at the top of this Schedule A and enclose it with your Form 1. EXCEPTIONS Even though Schedule 1 has entry lines for medical expenses, interest paid, and gifts to charity, not all of the amounts of these items that are deducted on federal Schedule A (Form 1040 or 1040-SR) can be used for the itemized deduction credit. The following describes the portion of these items that may not be used to compute the itemized deduction credit. • Amounts allocated to you on Schedule 5K-1 or 3K-1 by a tax-option (S) corporation or partnership if the entity elected to be taxed at the entity level. • Medical expenses – the amount of medical care insurance and long-term care insurance claimed as a subtraction on Schedule SB, lines 6 and 7. If this applies to you, complete the worksheet on the next page to figure the amount which you are allowed, if any, for purposes of the itemized deduction credit. • Interest – Paid to purchase a second home located outside Wisconsin – Paid to purchase a residence which is a boat – Paid to purchase or hold U.S. government securities – Mortgage insurance premiums treated as interest • Contributions and interest allocated to you by a tax-option (S) corporation if you treated the amount as a subtraction on Schedule SB, line 41. Line Instructions 16 Line 11 Itemized Deduction Credit – continued Worksheet for Medical Care Insurance and Long-Term Care Insurance Allowable for the Itemized Deduction Credit 1. Amount of medical care insurance (MCI) included on line 1 of federal Schedule A (Form 1040 or 1040-SR) If none, skip lines 1-5 and go to line 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1. 2. Total medical expenses from line 1 of federal Schedule A (Form 1040 or 1040-SR) . . . . . . . . . . . 2. 3. Divide the amount on line 1 by the amount on line 2. Carry the decimal to 4 places. This is your MCI ratio . . . . . . . . . . . . . . . . . 3. . 4. Fill in the amount from line 4 of federal Schedule A (Form 1040 or 1040-SR) 4. 5. Multiply line 4 by the decimal on line 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5. 6. Long-term care insurance (LTCI) included on line 1 of federal Schedule A (Form 1040 or 1040-SR). If none, skip lines 7 and 8 and go to line 9 . . . . . . 6. 7. Divide the amount on line 6 by the amount on line 2. Carry the decimal to 4 places. This is your LTCI ratio . . . . . . . . . . . . . . . . . 7. . 8. Multiply line 4 by the decimal amount on line 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8. 9. Add lines 5 and 8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9. 10. Subtract line 9 from line 4. If zero or less, enter 0 (zero) . . . . . . . . . . . . . . . 10. 11. MCI subtracted on line 6 of Schedule SB. If none, skip to line 13 . . . . . . . . . . . . . . . . . . . . . . . . . 11. 12. Subtract line 11 from line 5. If zero or less, enter 0 (zero) . . . . . . . . . . . . . . 12. 13. LTCI subtracted on line 7 of Schedule SB. If none, skip to line 15 . . . . . . . . . . . . . . . . . . . . . . . . . 13. 14. Subtract line 13 from line 8. If zero or less, enter 0 (zero) . . . . . . . . . . . . . . 14. 15. Add lines 10, 12, and 14. This is the amount that may be used as medical expenses for the itemized deduction credit on line 1 of Schedule 1. . . . . . . . 15. Line 12 Armed Forces Member Credit The armed forces member credit is available to certain members of the U.S. armed forces. You may claim the credit if you meet all of the following: • You were on active duty • You received military pay from the federal government in 2020 • The military pay was for services performed while stationed outside the United States You may not claim the armed forces member credit if you were on active duty as a member of the Reserves or National Guard and you excluded certain military pay from your income. See page 8 of the Schedule SB instructions for line 18 for information on the exclusion. The credit is equal to the amount of military pay you received for services performed while stationed outside the United States, but not more than $300. If you are married filing a joint return and both spouses qualify for the credit, each may claim up to $300. Line 13 Renter’s and Homeowner’s School Property Tax Credit You may claim a credit if you paid rent during 2020 for living quarters used as your primary residence OR you paid property taxes during 2020 on your home. You are eligible for a credit whether or not you claim homestead credit on line 30. You may not claim the school property tax credit if you or your spouse are claiming the veterans and surviving spouses property tax credit. Special Cases If You Paid Both Property Taxes and Rent You may claim both the renter’s credit and the homeowner’s credit. The total combined credit claimed on lines 13a and 13b may not be more than $300 ($150 if married filing a separate return or married filing as head of household). Married Persons Filing a
2020 I-111 Form 1 Instructions - Wisconsin Income Tax
More about the Wisconsin Income Tax Instructions Individual Income Tax TY 2020
This booklet includes instructions for filling out and filing Form 1 for Wisconsin residents.
We last updated the Wisconsin Form 1 Instructional Booklet in February 2021, so this is the latest version of Income Tax Instructions, fully updated for tax year 2020. You can download or print current or past-year PDFs of Income Tax Instructions directly from TaxFormFinder. You can print other Wisconsin tax forms here.
Other Wisconsin Individual Income Tax Forms:
|Form Code||Form Name|
|Form 1-ES||Estimated Income Tax Voucher|
|Form 1||Income Tax Return (Long Form)|
|Income Tax Instructions||Wisconsin Form 1 Instructional Booklet|
|Schedule H-EZ||Homestead Credit Claim (Easy Form)|
|Form 1-ES Instructions||Estimated Income Tax Instructions|
Wisconsin usually releases forms for the current tax year between January and April. We last updated Wisconsin Income Tax Instructions from the Department of Revenue in February 2021.
About the Individual Income Tax
The IRS and most states collect a personal income tax, which is paid throughout the year via tax withholding or estimated income tax payments.
Most taxpayers are required to file a yearly income tax return in April to both the Internal Revenue Service and their state's revenue department, which will result in either a tax refund of excess withheld income or a tax payment if the withholding does not cover the taxpayer's entire liability. Every taxpayer's situation is different - please consult a CPA or licensed tax preparer to ensure that you are filing the correct tax forms!
Historical Past-Year Versions of Wisconsin Income Tax Instructions
We have a total of six past-year versions of Income Tax Instructions in the TaxFormFinder archives, including for the previous tax year. Download past year versions of this tax form as PDFs here:
2020 I-111 Form 1 Instructions - Wisconsin Income Tax
2019 I-111 Form 1 Instructions - Wisconsin Income Tax
2018 I-111 Form 1 Instructions - Wisconsin Income Tax
2017 I-117 Forms 1A & WI-Z Instructions - Wisconsin Income Tax
2016 I-117 Forms 1A & WI-Z Instructions - Wisconsin Income Tax
2015 I-117 Forms 1A and WI-Z Instructions
While we do our best to keep our list of Wisconsin Income Tax Forms up to date and complete, we cannot be held liable for errors or omissions. Is the form on this page out-of-date or not working? Please let us know and we will fix it ASAP.