The credit for taxes paid to another state is automatically calculated in your account when you add a nonresident return to your already created resident Wisconsin return if you pay taxes to both Wisconsin and another state on the same income.
If you are completing a part-year resident return for the other state, complete the information in the credit for taxes paid to another state section.
Limitations: Does not apply to property tax, sales tax, or local taxes. The credit cannot exceed the Wisconsin tax attributable to that same income. The credit applies only to income that is taxable in Wisconsin and the other state. If the credit exceeds your Wisconsin tax, the excess is not refundable and cannot be carried forward.
Reciprocity Exception: Credit cannot be claimed for taxes paid to Illinois, Indiana, Kentucky or Michigan on earned income from working in one of these states. See our article regarding Reciprocity for more information.
Requirement: Wisconsin will request a copy of the other state's tax return before processing the return. After you e-file your state returns and they are accepted by the state, you will need to print a copy of the other state and attach it to Wisconsin Form W-RA (included in your Wisconsin print) and mail it to the state. Mailing and further instructions are found on Form W-RA.
If you fail to mail the other state return, Wisconsin will deny the other state tax credit shown on your Wisconsin return and will adjust your refund or balance due accordingly.
Please see the Wisconsin Department of Revenue website for more information.
Program Entry
To complete the information for taxes paid to another state, please follow the steps below:
- State
- Three dots (...), then select edit
- Credits
- Credit For Taxes Paid To Another State