Wisconsin allows for a subtraction for Local, State and Federal retirement benefits included on the federal return. You can take this subtraction if you meet the following qualifications:
- You were retired from the system before January 1, 1964
- You were a member of the system as of December 31, 1963, retired at a later date and received payments before 1964.
- You are receiving payments from the system as a beneficiary that meets the qualifications above.
To make this manual entry in the program, go to:
- State Section
- Edit (three dots)
- Subtractions from Income
- Retirement Income Exclusion Worksheet
What else do I need to know?
The subtraction entry may not be more than the amount included on the federal return. To view which retirement systems qualify for the state and local subtraction, click here.
See also Is my military pension/retirement income taxable to Wisconsin?