Per the Wisconsin Form 1 filing instructions: Enter the amount of any of the subtractions described below that apply to you.
NOTE: Effective tax year 2020 the Subtractions from Income are listed on Schedule SB - the codes no longer apply for tax years starting in 2020, only for prior years.
Medical Care Insurance - Code 01
You may be able to subtract all or a portion of the cost of your medical care insurance. For more detailed description of what is considered deductible, click here.
If you are self employed, complete Worksheet 1 or 2. (Note: If you are self employed and deducted 100% of your medical care insurance cost on line 29 of your federal Form 1040 as a self-employed health insurance deduction, do not complete Worksheet 1 or 2. No additional deduction is allowed.)
Long-Term Care Insurance - Code 02
This subtraction is available if you paid long-term care insurance costs during 2021. This includes long-term or custodial care or care for a chronic or terminal illness that takes place in your home or a community based setting. This does NOT include a Medicare supplement policy or Medicare replacement policy or a continuing care contract. Do not include any premiums paid with tax-free distributions from a retirement plan.
Tuition and Fee Expenses - Code 03
If you paid tuition in 2021 or mandatory student fees for you, your spouse and/or children, you may be able to claim a subtraction of up to $6,973 paid per student. This subtraction does not apply to tuition paid for pre-schools, elementary, or secondary schools. For a more detailed description of what this subtraction supports, click here. Caution: If you claimed a tuition and fees deduction on your federal return, be sure you have completed Wisconsin Schedule I. This amount is not allowed for Wisconsin purposes and must be added to your federal adjusted gross income.
Military and Uniformed Services Retirement Benefits – Code 04
You can subtract retirement benefits if they are received from the U.S. Military Retirement System (including survivors' benefits) and benefits received from the U.S. government that relates to the Coast Guard, the National Oceanic and Atmospheric Administration or the commissioned corps of the Public Health Service.
Local and State Retirement Benefits - Code 05
You may subtract any payments received from the retirement systems listed below provided that:
- You were retired from the system before January 1, 1964, or
- You were a member of the system as of December 31, 1963, retiring at a later date and payments you receive are from an account established before 1964, or
- You are receiving payments from the system as the beneficiary of an individual who met either condition 1 or 2.
The specific retirement systems are: Milwaukee City Employees, Milwaukee City Police Officers, Milwaukee Firefighters, Milwaukee Public School Teachers, Milwaukee County Employees, Milwaukee Sheriff and Wisconsin State Teachers retirement systems. Please click here for additional information.
Federal Retirement Benefits - Code 06
You may subtract payments received from a federal retirement system provided:
- You were retired from the system before January 1, 1964, or
- You were a member of the system as of December 31, 1963, retiring at a later date and payments you receive are from an account established before 1964, or
- You are receiving payments from the system as the beneficiary of an individual who met either condition 1 or 2.
These retirement benefits are paid from the U.S. Office of Personnel Management. Payments from the federal Thrift Savings Plan do not qualify for the subtraction.
Railroad Retirement Benefits, Railroad Unemployment Insurance, and Sickness Benefits - Code 07
The state of Wisconsin does not tax benefits received from the U.S. Railroad Board. Subtract railroad retirement benefits included on line 5b of the Federal 1040 Form or 1040-SR
Adoption Expenses - Code 08
If a final order of adoption was entered by a court in any state for a child that you adopted during 2022, you may subtract up to $5,000 of the amount you paid for adoption fees, court costs, and any legal fees relating to the adoption. You cannot subtract any amounts that were reimbursed under any adoption assistance program. You may include amounts paid in 2020, 2021, and 2022.
Recoveries of Federal Itemized Deductions - Code 09
Fill in any amount included as income on your federal tax return that is a recovery of a federal itemized deduction from a prior year for which you did not receive a Wisconsin tax benefit.
Wisconsin Net Operating Loss Carry forward - Code 10
If you had a net operating loss (NOL) in an earlier year to carry forward to 2021, include the allowable amount. An NOL carryforward cannot be used unless the loss that was incurred was computed on a return that was filed within 4 years of the extended due date.
Native Americans - Code 11
Some income earned by Native Americans who live and work on their reservation is not subject to Wisconsin income tax. This income can be subtracted on your Wisconsin return.
Amounts Not Taxable by Wisconsin - Code 12
You can subtract amounts that are not taxable by WI that was included in your federal income or excluded from your itemized deductions. If you use Code 12 as a subtraction from income, you must enclose a statement of the subtractions. *The program does not support attachments during E-file. You will need to print, sign and mail the return to include this information.
Farm Loss Carryover - Code 13
If you were subject to farm loss limitation on your 2005-2013 or subsequent year Wisconsin income tax returns, you may be able to claim a subtraction for all or a portion of the farm loss disallowed in those years. For more information regarding this subtraction, click here.
Distributions from Wisconsin State-Sponsored College Tuition Programs -Code 15
If you received a refund from a Wisconsin Edvest account because the beneficiary completed the program and did not use the tuition credits purchased or received a scholarship, tuition waiver or similar subsidy, you may deduct any amount that is included as earnings in your Federal Adjusted Gross Income.
Disability Income Exclusion - Code 16
If you are retired on permanent and total disability and have included your disability income on line 1 of Form 1, you may be able to subtract up to $5,200 of your disability income. You must meet ALL these tests:
- You did not reach mandatory retirement age before January 1, 2022.
- You were under age 65 on December 31, 2022.
- You were permanently and totally disabled –
a. When you retired, or
b. On January 1, 1976, or January 1, 1977, if you retired before January 1, 1977, on disability or under circumstances which entitled you to retire on disability. - If you were married at the end of 2022, you must file a joint return.
- You did not in any year prior to 1984 choose to treat your disability income as a pension instead of taking the exclusion.
- Your federal adjusted gross income is less than $20,200 ($25,400 if married and both spouses are eligible)
See Schedule 2240W at the top of this article for more information.
Sale of Business Assets or Assets Used in Farming to a Related Person - Code 17
You may subtract the taxable portion of a gain you received from the sale/disposition to a related person of business assets or assets used in a farming. For a complete list of qualifications and conditions, click here.
Repayment of Income Previously Taxed - Code 18
If you had an amount that you included in your Wisconsin income in an earlier that you had to pay back in 2022, you may be able to subtract the amount that was repaid. For a more detailed description of this subtraction, click here.
Human Organ Donation - Code 19
You may subtract up to $10,000 of unreimbursed expenses if you, your spouse or any of your dependents donated one or more of their organs to another human for an organ transplant. Up to $10,000 of travel expenses, lodging expenses or lost wages can be claimed.
Reserve or National Guard Members - Code 20
Members of the Reserves or the National Guard that were active duty under 10 USC 12302(a) or 10 USC 12304 or special state service under 32 USC 502(f), may subtract any military pay that was included on their W-2 and:
- Received from the federal government
- Received after being called into active federal service or special state service authorized by the DOD, AND
- Paid for the time you were on active duty
Expenses Paid to Related Entities - Code 21
You may be able to take a subtraction if you were required to make an addition modification for interest, rental expenses, intangible expenses, or management fees paid to a related entity.
Legislator’s Per Diem- Code 23
You may subtract the amount of Per Diem reimbursement that is included as wages on your W-2 if you were a Wisconsin legislator.
Contributions to ABLE Accounts - Code 24
For 2022, a subtraction can be claimed up to $16,000 for contributions made to an ABLE account whose beneficiary is a disabled person. Distributions must be used to pay for qualified disability expenses of the disabled person. For more information on this subtraction, click here.
Interest, Rental Payments, Intangible Expenses, and Management Fees Reported as Income by a Related Entity - Code 25
You may be able to subtract income that was reported from interest, rental payments, intangible expenses, or management fees made by a related entity that was not able to claim a deduction for such payments.
Retirement Income Exclusion - Code 26
You may subtract up to $5,000 of certain retirement income if:
- You (or your spouse if married filing a joint return) were 65 years of age or older on December 31, 2022, and
- Your federal adjusted gross income (line 1 of Form 1) is less than $15,000 ($30,000 if married filing a joint return). If married filing a separate return, the sum of both spouses’ federal adjusted gross income must be less than $30,000.
If you meet the qualifications, complete the worksheet found in the program under Subtractions From Income. The worksheet can also be found in the Schedule SB Instructions.
Sales of Certain Insurance Policies - Code 27
Certain sales of insurance policies can be entered as a subtraction from income from original policy holders who have a catastrophic or life-threatening illness.
Combat Zone Related Death - Code 29
You can subtract all military income received by an individual if the individual died in a combat zone or due to wounds, disease or injury incurred while in a combat zone while on active duty during 2022.
Physician or Psychiatrist Grant - Code 30
To the extent included in federal adjusted gross income, any amount received by a physician or psychiatrist from the primary care and psychiatry shortage grant program under sec. 39.385, Wis. Stats., may be subtracted.
Olympic, Paralympic, and Special Olympic medals and United States Olympic Committee and Special Olympic Board of Directors prize money - Code 32
Persons who win medals at the Olympic and Paralympic Games generally exclude the value of such medals and the amount of prize money received from the U.S. Olympic Committee from federal income. Because the starting point for computing Wisconsin taxable income is federal adjusted gross income (FAGI), the amount that is excluded from federal income is automatically excluded from Wisconsin income and no additional subtraction is allowed for Wisconsin.
Other Subtractions from Income - amounts not taxable by Wisconsin but included on your federal return. Example: Relocation assistance payments received by individuals who have been required to move due to condemnation are not taxed by Wisconsin.
Codes 51-58 are no longer applicable in 2020 (only in prior years) may be either an addition to or subtraction from income. Please click on the links to visit the Knowledgebase article for more information about the entry.
Tax-Option (s) Corporation Adjustments- Code 51
Your share of Partnership, Limited Liability Company, Trust or Estate Adjustments- Code 52
Charitable Contributions from Tax Option (S) Corps Code 53
Differences in Federal and Wisconsin Basis of Asserts- Code 54
Differences in Federal and Wisconsin Basis of Partnership Interest- Code 55
Differences in Federal and Wisconsin Reporting of Marital Property (Community) Income- Code 56
Entity Level Tax for Tax-Option (S) Corporations- Code 57
Entity Level Tax for Partnerships- Code 58
For further information regarding any of these Wisconsin subtractions, please click here.