What is this?
If you were a shareholder of a tax-option (S) Corporation, you can elect to subtract your charitable contributions reported on your 5K-1 line 12a as a subtraction instead of an itemized deduction. If the corporation elected to be taxed at the entity level, you cannot take a subtraction for the charitable contributions reported on the 5K-1 here or use them to figure the itemized deduction credit.
Where do I enter it?
If the adjustment is an addition to income for Wisconsin, enter it in the Additions to Income Section. If it is a subtraction, enter it in the Subtractions from Income Section. Use Code 53 for either entry for prior years not applicable for tax year 2020.
If you are choosing to claim the Subtraction from Income rather then the Itemized Deduction, you will need to remove the Charitable Contributions from the Schedule A prior to filing the state return.
The subtraction is limited to the amount actually deductible for federal purposes on the federal Schedule A. If you are not able to itemize on the federal return, you cannot take this subtraction.
What else do I need to do?
You are required to attach a copy of the 5K-1 to your return. To attach a copy of your K-1 to your return, visit the Credits section of your state return. You can also download it on the state website.
For more information, get Publication 102, Wisconsin Tax Treatment of Tax-Option (S) Corporations and Their Shareholders.