According to the Wisconsin Department of Revenue, "A nonresident spouse's income from services performed (for example, wages or service from self-employment) in Wisconsin is not taxable to Wisconsin as long as the nonresident spouse is in Wisconsin solely to be with the servicemember who is serving in Wisconsin in compliance with military orders."
How do I claim an exemption from Wisconsin withholding?
To claim an exemption from Wisconsin withholding, the nonresident spouse of the service member must file Wisconsin Form W-221, Nonresident Military Spouse Withholding Exemption, with his/her employer. It is not necessary for this form to be filed annually. It remains in effect until revoked. If you no longer qualify for the exemption, complete Form W-221 and a WT-4 to claim your withholdings.
How do I claim a refund on the taxes withheld from my Wisconsin income?
You will need to file a nonresident Wisconsin return and exclude the military spouse earnings within the W-2 entry page.
- Federal Section
- Wages and Salaries
- Edit Military Spouse W-2 do not report any Wisconsin income in Box 16 of your W-2. Report the withholdings in Box 17 of the W-2 within the Federal Section.
- State Section
- Nonresident Wisconsin Return
- Basic Information
- Select the Resident state
- Special Condition Code = Military Spouse. Enter the military spouse income in the box. (If filing joint with Military Service Member, enter Nonresident Service Member as Code and include both military service member's and spouse's income in box.)
Reminder: Military Spouse income may be taxable on your resident state return.