Wisconsin allows certain income adjustments that don't fit into one of the specifically listed subtraction categories. These adjustments are reported as Other Subtractions From Income on Schedule SB.
If you're claiming one of these subtractions, you'll generally need to enter the subtraction amount, the applicable code, and a description explaining the adjustment.
When Should I Use Other Subtractions From Income?
Use the Other Subtractions section when Wisconsin law allows a subtraction from income, but the adjustment is not entered elsewhere in the Wisconsin return.
Many of these subtractions are unique situations that apply only to certain taxpayers.
Common Other Subtractions From Income
Income Earned While a Nonresident of Wisconsin
In some situations, income reported on your federal return may not be taxable by Wisconsin because it was earned while you were a nonresident.
If Wisconsin law excludes the income, an adjustment may be appropriate.
Certain Tribal or Native American Income
Certain income earned by enrolled members of federally recognized tribes may qualify for a Wisconsin subtraction when the income meets Wisconsin's exclusion requirements.
Eligibility generally depends on:
- Tribal membership
- Residency
- Source of the income
- Location where the income was earned
Military-Related Income Exclusions
Certain military income that remains taxable federally may qualify for a Wisconsin subtraction.
Examples may include:
- Qualifying military benefits
- Certain military compensation
- Other military-related income specifically excluded under Wisconsin law
Disaster Assistance Payments
Certain disaster-related assistance payments that are included in federal income may qualify for a Wisconsin subtraction if Wisconsin law provides an exclusion.
Settlement Payments and Specialized Income Exclusions
Wisconsin occasionally provides subtraction modifications for specific settlements, claims, restitution payments, grants, or other special categories of income.
Eligibility depends on the specific law authorizing the subtraction.
Income Previously Taxed by Wisconsin
In some circumstances, income may have already been included in Wisconsin taxable income in a prior year.
If Wisconsin law allows an adjustment to prevent double taxation, a subtraction may be available.
Other Wisconsin-Specific Adjustments
Wisconsin periodically creates subtraction modifications for:
- Economic development programs
- Education programs
- Agricultural programs
- Military programs
- Public benefit programs
- Certain federally taxed income not taxable in Wisconsin
If you received documentation instructing you to claim a Wisconsin subtraction, report the adjustment using the appropriate code and description.
What Information Do I Need?
For each Other Subtraction, you'll generally need:
- The subtraction amount
- The Wisconsin subtraction code
- A description of the adjustment
- Any supporting schedules, worksheets, or documentation
The description should clearly explain why the subtraction is being claimed.
Program Entry
To enter an Other Subtraction:
- State Section
- Edit (three dots)
- Subtractions From Income
- Other Subtractions
- Enter the subtraction amount
- Enter the applicable Wisconsin subtraction code
- Enter a description of the subtraction
- Continue through the remainder of the Wisconsin return
What Records Should I Keep?
Keep copies of:
- Supporting worksheets
- Wisconsin schedules
- Forms 1099
- Forms W-2
- Tribal documentation, if applicable
- Military records, if applicable
- Grant or settlement documentation
- Any notices or schedules supporting the subtraction
These records can help support the subtraction if the Wisconsin Department of Revenue requests additional information after your return is filed.
Do I Need Documentation?
Yes. Most Other Subtractions require supporting documentation showing why the subtraction is allowed.
If you're unsure whether an adjustment belongs in another Wisconsin subtraction category or in Other Subtractions, review the instructions provided with the supporting documentation before entering the amount.