Unemployment Compensation on 2020 Wisconsin Income Tax Returns
The federal American Rescue Plan Act of 2021 ( Public Law 117-2), signed into law on March 11, 2021, allows an exclusion of up to $10,200 of unemployment compensation (UC) on the 2020 federal income tax return. This federal law does not apply for Wisconsin tax purposes. This article will be replaced if Wisconsin law changes.
If you already filed your 2020 Wisconsin income tax return, and are amending your federal return solely to exclude UC, do NOT amend your 2020 Wisconsin return because there is no change to the amount of taxable income or tax due to Wisconsin.
If you have not filed your 2020 Wisconsin return, you must add the amount of UC excluded on your federal return on lines 2h, 2i, or 2j of Wisconsin Schedule I. This schedule determines the federal adjusted gross income using the Internal Revenue Code adopted for Wisconsin.
Wisconsin provides a subtraction from income for UC. After including all of your UC in federal adjusted gross income on your Wisconsin return, determine if you are eligible for the Wisconsin subtraction by completing the worksheet on page 2 of the Wisconsin 2020 Schedule SB instructions.
Applicable Laws and Rules
This document provides statements or interpretations of ch. 71, Wis. Stats. enacted as of March 17, 2021. Laws enacted and in effect after this date, new administrative rules, and court decisions may change the interpretations in this document. Guidance issued prior to this date that is contrary to the information in this document is superseded by this document, pursuant to sec. 73.16(2)(a), Wis. Stats.
FOR QUESTIONS OR COMMENTS CONTACT:
MS 5-77
WISCONSIN DEPARTMENT OF REVENUE
Customer Service Bureau
PO Box 8949
Madison, WI 53708-8949
Phone: (608) 266-2772
Fax: (608) 267-1030
Email additional questions to DORIncome@wisconsin.gov
The department welcomes your input on our guidance. Submit comments on this guidance document.
March 17, 2021