71.05(6)(a)20.
20. The amount of any excess distribution, as that term is used in section
1291 (b) of the Internal Revenue Code, from a passive foreign investment company.
71.05(6)(a)21.
21. For taxable years beginning after December 31, 2007, and before January 1, 2009, any amount deducted as income attributable to domestic production activities under section
199 of the Internal Revenue Code if the individual claiming the deduction is a nonresident or part-year resident of this state and if the domestic production activities income is not attributable to a trade or business that is taxable by this state.
71.05(6)(a)22.
22. For taxable years beginning after December 31, 2007, and before January 1, 2009, if an individual is a nonresident or part-year resident of this state and a portion of the amount the individual deducted as income attributable to domestic production activities under section
199 of the Internal Revenue Code is attributable to a trade or business that is taxable by this state, the amount deducted under section 199 for federal income tax purposes and in excess of that amount, multiplied by a fraction, the numerator of which is the individual's net earnings from the trade or business that is taxable by this state and the denominator of which is the individual's total net earnings from the trade or business to which the deduction under section
199 of the Internal Revenue Code applies.
71.05(6)(a)23.
23. Any amount deducted by an individual under section
62 (a) (20) of the Internal Revenue Code related to attorney fees or court costs, involving an unlawful discrimination claim, if the individual is a nonresident or part-year resident of this state and if the judgment or settlement resulting from the claim is not taxable by this state.
71.05(6)(a)24.
24. The amount deducted or excluded under the Internal Revenue Code for interest expenses, rental expenses, intangible expenses, and management fees that are directly or indirectly paid, accrued, or incurred to, or in connection directly or indirectly with one or more direct or indirect transactions with, one or more related entities.
71.05(6)(a)25.
25. The amount computed under
s. 71.07 (5n) in the previous taxable year and not passed through by a partnership, limited liability company, or tax-option corporation that has added that amount to the partnership's, company's, or tax-option corporation's income under
s. 71.21 (4) (a) or
71.34 (1k) (m) and not included in federal adjusted gross income.
71.05(6)(a)26.
26. For the taxable year in which a distribution is received, all of the following amounts distributed from a college savings account, as described in
s. 16.641:
71.05(6)(a)26.a.
a. To the extent that the receipt of such amounts by the owner or beneficiary of the account results in a penalty as provided in
26 USC 529 (c) (6), any amount that was not used for qualified higher education expenses, as that term is defined in
26 USC 529 (e) (3), and was contributed to the account after December 31, 2013, except that this
subd. 26. a. applies only to amounts for which a subtraction was made under
par. (b) 32.
71.05(6)(a)26.b.
b. Any amount rolled over by an owner into another state's qualified tuition program, as described in
26 USC 529 (c) (3) (C) (i), to the extent that the amount was previously claimed as a deduction under
par. (b) 32.
71.05(6)(a)26.c.
c. To the extent that an amount is not otherwise added back under this subdivision, any amount withdrawn from a college savings account, as described in
s. 16.641, for any purpose if the withdrawn amount was contributed to the account within 365 days of the day on which the amount was withdrawn from such an account and if the withdrawn amount was previously subtracted under
par. (b) 32.
71.05(6)(a)27.
27. Except as provided in
subd. 28., to the extent that an amount is not included in federal adjusted gross income, any amount withdrawn from a qualified ABLE account described under section
529A (b) (1) of the Internal Revenue Code for any reason other than the payment of qualified disability expenses, as defined in section
529A (e) (5) of the Internal Revenue Code, for the account beneficiary.
71.05(6)(a)28.
28. Upon the termination of an account as described under
s. 16.643, any amount in the account that is returned to an account owner's estate.
71.05(6)(b)
(b)
Subtractions. From federal adjusted gross income subtract to the extent included in federal taxable or adjusted gross income unless the modification is an item, other than a capital gain deduction under
s. 71.36 or interest on U.S. obligations, that is passed through to an individual from a tax-option corporation and would be included in that corporation's income if it were not a tax-option corporation:
71.05(6)(b)1.
1. The amount of any interest or dividend income which is by federal law exempt from taxation by this state less the related expense in regard to both the distributable and nondistributable interest and dividend income on a fiduciary return.
71.05 Cross-reference
Cross-reference: See also ss.
Tax 3.095 and
3.096, Wis. adm. code.
71.05(6)(b)3.
3. Any other amount not subject to taxation under this chapter, less any amount allocable thereto which has been deducted in the computation of federal taxable or adjusted gross income except amounts used to calculate the credit under
s. 71.07 (5).
71.05 Cross-reference
Cross-reference: See also s.
Tax 3.098, Wis. adm. code.
71.05(6)(b)4.
4. Disability payments other than disability payments that are paid from a retirement plan, the payments from which are exempt under
sub. (1) (ae),
(am), and
(an), if the individual either is single or is married and files a joint return, to the extent those payments are excludable under section
105 (d) of the Internal Revenue Code as it existed immediately prior to its repeal in 1983 by section 122 (b) of
P.L. 98-21, except that if an individual is divorced during the taxable year that individual may subtract an amount only if that person is disabled and the amount that may be subtracted then is $100 for each week that payments are received or the amount of disability pay reported as income, whichever is less. If the exclusion under this subdivision is claimed on a joint return and only one of the spouses is disabled, the maximum exclusion is $100 for each week that payments are received or the amount of disability pay reported as income, whichever is less.
71.05(6)(b)5.
5. Any amounts that are recoveries of federal itemized deductions for which no tax benefit was received for Wisconsin purposes.
71.05(6)(b)6.
6. For the original purchaser of small business stock that is purchased at the time that the business is incorporated and before January 1, 2014, and that is sold before January 1, 2014, the amount of net capital gains on small business stock otherwise subject to the tax under
s. 71.02 if the taxpayer has not acquired the stock by gift, has not acquired the stock in a stock-for-stock exchange and submits with the taxpayer's return a copy of the certification under
s. 71.01 (10).
71.05(6)(b)8.
8. The difference between the amount included in federal adjusted gross income for the current year and the amount calculated under section
85 of the internal revenue code (relating to unemployment compensation) as that section existed on December 31, 1985.
71.05(6)(b)9.
9. On assets held more than one year and on all assets acquired from a decedent, 30 percent of the capital gain as computed under the internal revenue code, not including capital gains for which the federal tax treatment is determined under section 406 of
P.L. 99-514; not including amounts treated as ordinary income for federal income tax purposes because of the recapture of depreciation or any other reason; and not including amounts treated as capital gain for federal income tax purposes from the sale or exchange of a lottery prize. For purposes of this subdivision, the capital gains and capital losses for all assets shall be netted before application of the percentage.
71.05(6)(b)9m.
9m. On farm assets held more than one year and on all farm assets acquired from a decedent, to the extent that they are not subtracted under
subd. 9. or
10., 60 percent of the capital gain as computed under the Internal Revenue Code, not including capital gains for which the federal tax treatment is determined under section 406 of
P.L. 99-514; not including amounts treated as ordinary income for federal income tax purposes because of the recapture of depreciation or any other reason; and not including amounts treated as capital gain for federal income tax purposes from the sale or exchange of a lottery prize. In this subdivision, “farm assets" means livestock, farm equipment, farm real property, and farm depreciable property. For purposes of this subdivision, the capital gains and capital losses for all assets shall be netted before application of the percentage.
71.05(6)(b)10.
10. Farm losses added to income under
par. (a) 10. in any of the 15 preceding years, to the extent that they are not offset against farm income of any year between the loss year and the taxable year for which the modification under this subdivision is claimed and to the extent that they do not exceed the net profits or net gains from the sale or exchange of capital or business assets in the current taxable year from the same farming business or portion of that business to which the limits on deductible farm losses under
par. (a) 10. applied in the loss year.
71.05(6)(b)12.
12. Any amount recognized as a gain under section
1001 (c) of the Internal Revenue Code if a surviving spouse and a distributee exchange their interests in marital property under
s. 766.31 (3) (b).
71.05(6)(b)13.
13. Any amount of basic, special and incentive pay income or compensation, as those terms are used in
37 USC chapters 3 and
5, received from the federal government by a person who is a member of a reserve component of the U.S. armed forces, as defined in
26 USC 7701 (a) (15), and is below the grade of commissioned officer, for services performed for Operation Desert Shield or Operation Desert Storm. In this subdivision, “services performed for Operation Desert Shield or Operation Desert Storm" means service in a unit of the U.S. armed forces if:
71.05(6)(b)13.a.
a. The person is activated for Operation Desert Shield or Operation Desert Storm; and
71.05(6)(b)13.b.
b. The service occurs during the period that there is in effect a designation by the president of the United States that the service is part of Operation Desert Shield or Operation Desert Storm.
71.05(6)(b)14.
14. Up to $500 per month of basic, special and incentive pay income or compensation, as those terms are used in
37 USC chapters 3 and
5, received from the federal government by a person who is a member of a reserve component of the U.S. armed forces, as defined in
26 USC 7701 (a) (15), and is a commissioned officer, for services performed for Operation Desert Shield or Operation Desert Storm. In this subdivision, “services performed for Operation Desert Shield or Operation Desert Storm" means service in a unit of the U.S. armed forces if:
71.05(6)(b)14.a.
a. The person is activated for Operation Desert Shield or Operation Desert Storm; and
71.05(6)(b)14.b.
b. The service occurs during the period that there is in effect a designation by the president of the United States that the service is part of Operation Desert Shield or Operation Desert Storm.
71.05(6)(b)17.
17. For taxable years beginning after December 31, 1992, and before January 1, 1994, an amount paid by a self-employed person, or an amount paid by a person who is the employee of another person if the person's employer pays no amount of money toward the person's medical care insurance, for medical care insurance for the person, his or her spouse and the person's dependents, calculated as follows:
71.05(6)(b)17.a.
a. Twenty-five percent of the amount paid by the person for medical care insurance. In this subdivision, “medical care insurance" means a medical care insurance policy that covers the person, his or her spouse and the person's dependents and provides surgical, medical, hospital, major medical or other health service coverage, and includes payments made for medical care benefits under a self-insured plan, but “medical care insurance" does not include hospital indemnity policies or policies with ancillary benefits such as accident benefits or benefits for loss of income resulting from a total or partial inability to work because of illness, sickness or injury.
71.05(6)(b)17.b.
b. From the amount calculated under
subd. 17. a., subtract the amounts deducted from gross income for medical care insurance in the calculation of federal adjusted gross income.
71.05(6)(b)17.c.
c. For a person who is a nonresident or a part-year resident of this state, modify the amount calculated under
subd. 17. b. by multiplying the amount by a fraction the numerator of which is the person's net earnings from a trade or business taxable by this state and the denominator of which is the person's total net earnings from a trade or business.
71.05(6)(b)17.d.
d. Reduce the amount calculated under
subd. 17. b. or
c. to the person's aggregate net earnings from a trade or business that are taxable by this state.
71.05(6)(b)18.
18. For taxable years beginning after December 31, 1993, and before January 1, 1995, an amount paid by a self-employed person, or an amount paid by a person who is the employee of another person if the person's employer pays no amount of money toward the person's medical care insurance, for medical care insurance for the person, his or her spouse and the person's dependents, calculated as follows:
71.05(6)(b)18.a.
a. Fifty percent of the amount paid by the person for medical care insurance. In this subdivision, “medical care insurance" means a medical care insurance policy that covers the person, his or her spouse and the person's dependents and provides surgical, medical, hospital, major medical or other health service coverage, and includes payments made for medical care benefits under a self-insured plan, but “medical care insurance" does not include hospital indemnity policies or policies with ancillary benefits such as accident benefits or benefits for loss of income resulting from a total or partial inability to work because of illness, sickness or injury.
71.05(6)(b)18.b.
b. From the amount calculated under
subd. 18. a., subtract the amounts deducted from gross income for medical care insurance in the calculation of federal adjusted gross income.
71.05(6)(b)18.c.
c. For a person who is a nonresident or a part-year resident of this state, modify the amount calculated under
subd. 18. b. by multiplying the amount by a fraction the numerator of which is the person's net earnings from a trade or business taxable by this state and the denominator of which is the person's total net earnings from a trade or business.
71.05(6)(b)18.d.
d. Reduce the amount calculated under
subd. 18. b. or
c. to the person's aggregate net earnings from a trade or business that are taxable by this state.
71.05(6)(b)19.
19. For taxable years beginning on or after January 1, 1995, an amount paid by a self-employed person for medical care insurance for the person, his or her spouse and the person's dependents, calculated as follows:
71.05(6)(b)19.a.
a. One hundred percent of the amount paid by the person for medical care insurance, not including any amount that is paid with a premium assistance credit amount under
26 USC 36B. In this subdivision, “medical care insurance" means a medical care insurance policy that covers the person, his or her spouse and the person's dependents and provides surgical, medical, hospital, major medical or other health service coverage, and includes payments made for medical care benefits under a self-insured plan, but “medical care insurance" does not include hospital indemnity policies or policies with ancillary benefits such as accident benefits or benefits for loss of income resulting from a total or partial inability to work because of illness, sickness or injury.
71.05(6)(b)19.b.
b. From the amount calculated under
subd. 19. a., subtract the amounts deducted from gross income for medical care insurance in the calculation of federal adjusted gross income.
71.05(6)(b)19.c.
c. For a person who is a nonresident or a part-year resident of this state, modify the amount calculated under
subd. 19. b. by multiplying the amount by a fraction the numerator of which is the person's net earnings from a trade or business that are taxable by this state and the denominator of which is the person's total net earnings from a trade or business.
71.05(6)(b)19.d.
d. Reduce the amount calculated under
subd. 19. b. or
c. to the person's aggregate net earnings from a trade or business that are taxable by this state.
71.05(6)(b)20.
20. For taxable years beginning on or after January 1, 1995, and before January 1, 2006, an amount paid by a person who is the employee of another person if the person's employer pays no amount of money toward the person's medical care insurance, for medical care insurance for the person, his or her spouse and the person's dependents, calculated as follows:
71.05(6)(b)20.a.
a. Fifty percent of the amount paid by the person for medical care insurance. In this subdivision, “medical care insurance" means a medical care insurance policy that covers the person, his or her spouse and the person's dependents and provides surgical, medical, hospital, major medical or other health service coverage, and includes payments made for medical care benefits under a self-insured plan, but “medical care insurance" does not include hospital indemnity policies or policies with ancillary benefits such as accident benefits or benefits for loss of income resulting from a total or partial inability to work because of illness, sickness or injury.
71.05(6)(b)20.b.
b. From the amount calculated under
subd. 20. a., subtract the amounts deducted from gross income for medical care insurance in the calculation of federal adjusted gross income.
71.05(6)(b)20.c.
c. For a person who is a nonresident or a part-year resident of this state, modify the amount calculated under
subd. 20. b. by multiplying the amount by a fraction the numerator of which is the person's net earnings from a trade or business taxable by this state and the denominator of which is the person's total net earnings from a trade or business.
71.05(6)(b)20.d.
d. Reduce the amount calculated under
subd. 20. b. or
c. to the person's aggregate net earnings from a trade or business that are taxable by this state.
71.05(6)(b)21.a.a. For taxable years beginning before January 1, 2007, the difference between the amount of social security benefits included in federal adjusted gross income for the current year and the amount calculated under section
86 of the Internal Revenue Code as that section existed on December 31, 1992.
71.05(6)(b)21.b.
b. For taxable years beginning before January 1, 2008, the difference between the amount of social security benefits included in federal adjusted gross income for the current year and the amount calculated under section
86 of the Internal Revenue Code as that section existed on December 31, 1992.
71.05(6)(b)21.c.
c. For taxable years beginning after December 31, 2007
, the amount of social security benefits included in federal adjusted gross income under section
86 of the Internal Revenue Code.
71.05(6)(b)22.
22. For taxable years beginning after December 31, 1995, an amount up to $5,000 that is expended during the period that consists of the year to which the claim relates and the prior 2 taxable years, by a full-year resident of this state who is an adoptive parent, for adoption fees, court costs or legal fees relating to the adoption of a child, for whom a final order of adoption has been entered under
s. 48.91 (3) during the taxable year.
71.05(6)(b)23.
23. Any increase in value of a tuition unit that is purchased under a tuition contract under
s. 16.64, except that the subtraction under this subdivision may not be claimed by any individual who received a refund under
s. 16.64 (7) (a) 2.,
3. or
4.
71.05(6)(b)25.
25. All gains that are not excluded from taxation under
subd. 9., on business assets or on assets used in farming, including shares in a corporation or trust that meets the standards under
s. 182.001 (1), or both, held more than one year, that are sold or otherwise disposed of to persons who are related to the seller or transferor by blood, marriage or adoption within the 3rd degree of kinship as determined under
s. 990.001 (16), as computed under the Internal Revenue Code, not including amounts treated as ordinary income for federal income tax purposes because of the recapture of depreciation or any other reason.
71.05(6)(b)26.
26. For taxable years beginning on or after January 1, 1998, an amount paid by a person for a long-term care insurance policy for the person and his or her spouse, calculated as follows:
71.05(6)(b)26.a.
a. One hundred percent of the amount paid by the person for a long-term care insurance policy. In this subdivision, “long-term care insurance policy" means a disability insurance policy or certificate advertised, marketed, offered or designed primarily to provide coverage for care that is provided in the insured person's home or in institutional and community-based settings and that is convalescent or custodial care or care for a chronic condition or terminal illness; the term does not include a medicare supplement policy or medicare replacement policy or a continuing care contract, as defined in
s. 647.01 (2). “Long-term care insurance policy" applies to a policy that covers the person and his or her spouse.
71.05(6)(b)26.b.
b. From the amount calculated under
subd. 26. a., subtract the amounts deducted from gross income for a long-term care insurance policy in the calculation of federal adjusted gross income.
71.05(6)(b)26.c.
c. For a person who is a nonresident or a part-year resident of this state, modify the amount calculated under
subd. 26. b. by multiplying the amount by a fraction the numerator of which is the person's wages, unearned income and net earnings from a trade or business that are taxable by this state and the denominator of which is the person's total wages, unearned income and net earnings from a trade or business.
71.05(6)(b)26.d.
d. Reduce the amount calculated under
subd. 26. b. or
c. to the person's aggregate wages, unearned income and net earnings from a trade or business that are taxable by this state.
71.05(6)(b)28.
28. An amount paid by a claimant for tuition expenses and mandatory student fees for a student who is the claimant or who is the claimant's child and the claimant's dependent who is claimed under section
151 (c) of the Internal Revenue Code, to attend any university, college, technical college or a school approved under
s. 38.50, that is located in Wisconsin or to attend a public vocational school or public institution of higher education in Minnesota under the Minnesota-Wisconsin reciprocity agreement under
s. 39.47, calculated as follows:
71.05(6)(b)28.a.
a. Subject to
subd. 28. am., an amount equal to one of the following per student for each year to which the claim relates: for taxable years beginning before January 1, 2009, not more than twice the average amount charged by the board of regents of the University of Wisconsin System at 4-year institutions for resident undergraduate academic fees for the most recent fall semester, as determined by the board of regents by September 1 of that semester; for taxable years beginning after December 31, 2008, and subject to
subd. 28. am., $6,000.
71.05(6)(b)28.am.
am. Notwithstanding
subd. 28. a., for taxable years beginning after December 31, 2008, the department of revenue and the Board of Regents of the University of Wisconsin System shall continue making the calculation described under
subd. 28. a. Notwithstanding
subd. 28. a., once this calculation exceeds $6,000, the deduction for tuition expenses and mandatory student fees, as described in
subd. 28. (intro.), shall be based on an amount equal to not more than twice the average amount charged by the Board of Regents of the University of Wisconsin System at 4-year institutions for resident undergraduate academic fees for the most recent fall semester, as determined by the Board of Regents by September 1 of that semester, per student for each year to which the claim relates, and the deduction that may be claimed under this
subd. 28. am. first applies to taxable years beginning on the January 1 after the calculation of the Board of Regents, that must occur by September 1, exceeds $6,000.
71.05(6)(b)28.b.
b. From the amount calculated under
subd. 28. a. or
am., if the claimant is single or married and filing as head of household and his or her federal adjusted gross income is more than $50,000 but not more than $60,000, subtract the product of the amount calculated under
subd. 28. a. or
am. and the value of a fraction, the denominator of which is $10,000 and the numerator of which is the difference between the claimant's federal adjusted gross income and $50,000.
71.05(6)(b)28.c.
c. From the amount calculated under
subd. 28. a. or
am., if the claimant is married and filing jointly and the claimant's and his or her spouse's federal adjusted gross income is more than $80,000 but not more than $100,000, subtract the product of the amount calculated under
subd. 28. a. or
am. and the value of a fraction, the denominator of which is $20,000 and the numerator of which is the difference between the claimant's and his or her spouse's federal adjusted gross income and $80,000.
71.05(6)(b)28.d.
d. From the amount calculated under
subd. 28. a. or
am., if the claimant is married and filing separately and the claimant's federal adjusted gross income is more than $40,000 but not more than $50,000, subtract the product of the amount calculated under
subd. 28. a. or
am. and the value of a fraction, the denominator of which is $10,000 and the numerator of which is the difference between the claimant's federal adjusted gross income and $40,000.
71.05(6)(b)28.e.
e. For an individual who is a nonresident or part-year resident of this state, multiply the amount calculated under
subd. 28. a.,
am.,
b.,
c. or
d. by a fraction the numerator of which is the individual's wages, salary, tips, unearned income and net earnings from a trade or business that are taxable by this state and the denominator of which is the individual's total wages, salary, tips, unearned income and net earnings from a trade or business. In this
subd. 28. e., for married persons filing separately “wages, salary, tips, unearned income and net earnings from a trade or business" means the separate wages, salary, tips, unearned income and net earnings from a trade or business of each spouse, and for married persons filing jointly “wages, salary, tips, unearned income and net earnings from a trade or business" means the total wages, salary, tips, unearned income and net earnings from a trade or business of both spouses.
71.05(6)(b)28.f.
f. Reduce the amount calculated under
subd. 28. a.,
am.,
b.,
c.,
d. or
e. to the individual's aggregate wages, salary, tips, unearned income and net earnings from a trade or business that are taxable by this state.
71.05(6)(b)28.g.
g. No modification may be claimed under this subdivision by a claimant who is single or married and filing as head of household if the claimant's federal adjusted gross income is more than $60,000, by a claimant who is married and filing jointly if the claimant's and his or her spouse's federal adjusted gross income is more than $100,000 or by a claimant who is married and filing separately if the claimant's federal adjusted gross income is more than $50,000.
71.05(6)(b)28.h.
h. No modification may be claimed under this subdivision for an amount paid for tuition expenses and mandatory student fees, as described under this subdivision, if the source of the payment is an amount withdrawn from a college savings account, as described in
s. 16.641 or from a college tuition and expenses program, as described in
s. 16.64, and if the owner of the account or a parent, grandparent, great-grandparent, aunt, or uncle of the beneficiary, who contributed to the account, has claimed a deduction under
subd. 32. or
33. that relates to such an amount.
71.05(6)(b)28.i.
i. For taxable years beginning after December 31, 2012, the dollar amounts in
subd. 28. b.,
c.,
d., and
g. shall be increased each year by a percentage equal to the percentage change between the U.S. consumer price index for all urban consumers, U.S. city average, for the month of August of the previous year and the U.S. consumer price index for all urban consumers, U.S. city average, for the month of August 2011, as determined by the federal department of labor, except that the adjustment may occur only if the resulting amount is greater than the corresponding amount that was calculated for the previous year. Each amount that is revised under this
subd. 28. i. shall be rounded to the nearest multiple of $10 if the revised amount is not a multiple of $10 or, if the revised amount is a multiple of $5, such an amount shall be increased to the next higher multiple of $10. The department of revenue shall annually adjust the changes in dollar amounts required under this
subd. 28. i. and incorporate the changes into the income tax forms and instructions.
71.05(6)(b)29.
29. The amount claimed as a federal miscellaneous itemized deduction under the Internal Revenue Code for repayment of an amount included in income in a previous year to the extent that the repayment was previously included in Wisconsin adjusted gross income, except that no amount that is used in calculating the credit under
s. 71.07 (1) may be included in the calculation under this subdivision.
71.05(6)(b)30.
30. For taxable years beginning after December 31, 1998, any settlement received for claims against any person for any recovered assets, or any amount of assets or any gain generated on such assets, that were stolen from, hidden from or otherwise lost by an individual who was persecuted by Nazi Germany or any Axis regime during any period from 1933 to 1945 and have been recovered, returned or otherwise paid to the original victim or his or her heirs or beneficiaries. The assets to which this subdivision applies includes cash, bonds, stocks, deposits in a financial institution, proceeds from a life or other type of insurance policy, jewelry, precious metals, artwork or any other item of value owned by such a victim during any period from 1920 to 1945.
71.05(6)(b)31.
31. Any increase in value of a college savings account, as described in
s. 16.641, except that the subtraction under this subdivision may not be claimed by any individual who has made a nonqualified withdrawal, as described in
s. 16.641 (2) (e).
71.05(6)(b)32.
32. An amount paid into a college savings account, as described in
s. 16.641, in the taxable year in which the contribution is made or on or before the 15th day of the 4th month beginning after the close of a taxpayer's taxable year to which this subtraction relates, by the owner of the account or by any other individual, for the benefit of any beneficiary of an account, calculated as follows, except that each amount that is subtracted under this subdivision may be subtracted only once:
71.05(6)(b)32.a.
a. Except as otherwise provided in this subdivision, an amount equal to not more than $3,000 per beneficiary, by each contributor, or $1,500 by each contributor who is married and files separately, to an account for each year to which the claim relates, except that the total amount for which a deduction may be claimed under this subdivision and under
subd. 33., per beneficiary by any claimant may not exceed $3,000 each year, or $1,500 each year by any claimant who is married and files separately. In the case of a married couple, the total deduction under this subdivision and under
subd. 33., per beneficiary by the married couple may not exceed $3,000 each year. In the case of divorced parents, the total deduction under this subdivision and under
subd. 33., per beneficiary by the formerly married couple, may not exceed $3,000, and the maximum amount that may be deducted by each former spouse is $1,500, unless the divorce judgment specifies a different division of the $3,000 maximum that may be claimed by each former spouse. For taxable years beginning after December 31, 2013, the dollar amounts in this
subd. 32. a., and the dollar amounts in
subd. 33. a., shall be increased each year by a percentage equal to the percentage change between the U.S. consumer price index for all urban consumers, U.S. city average, for the month of August of the previous year and the U.S. consumer price index for all urban consumers, U.S. city average, for the month of August 2012, as determined by the federal department of labor, except that the adjustment may occur only if the resulting amount is greater than the corresponding amount that was calculated for the previous year. Each amount that is revised under this
subd. 32. a. and under
subd. 33. a. shall be rounded to the nearest multiple of $10 if the revised amount is not a multiple of $10 or, if the revised amount is a multiple of $5, such an amount shall be increased to the next higher multiple of $10. The department of revenue shall annually adjust the changes in dollar amounts required under this
subd. 32. a. and incorporate the changes into the income tax forms and instructions. Any amount that is paid into an account under this subdivision that exceeds the maximum amount that may be subtracted under this subdivision may be carried forward to the next taxable year, and thereafter, subject to the limitations in this subdivision.
71.05(6)(b)32.ae.
ae. No carryover that would otherwise be authorized under this subdivision may be allowed if the carryover amount was withdrawn from an account for any purpose and the withdrawal occurred within 365 days of the day on which the amount was contributed to the account.
71.05(6)(b)32.am.
am. Any carryover amount that is otherwise eligible for a subtraction under this subdivision shall be reduced by an amount equal to the amount of a withdrawal from an account that was not used for qualified higher education expenses, as that term is defined in
26 USC 529 (e) (3), to the extent that the withdrawn amount exceeds the amount that is added to income under
par. (a) 26.
71.05(6)(b)32.b.
b. For an individual who is a nonresident or part-year resident of this state, multiply the amount calculated under
subd. 32. a. by a fraction the numerator of which is the individual's wages, salary, tips, unearned income and net earnings from a trade or business that are taxable by this state and the denominator of which is the individual's total wages, salary, tips, unearned income and net earnings from a trade or business. In this
subd. 32. b., for married persons filing separately “wages, salary, tips, unearned income and net earnings from a trade or business" means the separate wages, salary, tips, unearned income and net earnings from a trade or business of each spouse, and for married persons filing jointly “wages, salary, tips, unearned income and net earnings from a trade or business" means the total wages, salary, tips, unearned income and net earnings from a trade or business of both spouses.
71.05(6)(b)32.c.
c. Reduce the amount calculated under
subd. 32. a. or
b. to the individual's aggregate wages, salary, tips, unearned income and net earnings from a trade or business that are taxable by this state.
71.05(6)(b)32m.
32m. Consistent with the limitations specified in
subd. 32., for rollovers occurring after April 15, 2015, any principal amount rolled over to a college savings account, as described in
s. 16.641, from another state's qualified tuition program, as described in
26 USC 529 (c) (3) (C) (i). Amounts eligible for the subtraction under this subdivision that are in excess of the annual limits specified under
subd. 32. may be carried forward to future taxable years of the taxpayer without limitation, other than the limits specified in
subd. 32. ae. and
am.
71.05(6)(b)33.
33. An amount paid into a college tuition and expenses program, as described in
s. 16.64, by the owner of the account or by a parent, grandparent, great-grandparent, aunt, or uncle of the beneficiary, if the beneficiary of the account is one of the following: the claimant; the claimant's child; the claimant's grandchild; the claimant's great-grandchild; or the claimant's niece or nephew; calculated as follows:
71.05(6)(b)33.a.
a. An amount equal to not more than $3,000 per beneficiary, by each contributor, or $1,500 by each contributor who is married and files separately, to an account for each year to which the claim relates, except that the total amount for which a deduction may be claimed under this subdivision and under
subd. 32., per beneficiary by any claimant may not exceed $3,000 each year, or $1,500 each year by any claimant who is married and files separately. In the case of a married couple, the total deduction under this subdivision and under
subd. 32., per beneficiary by the married couple may not exceed $3,000 each year. In the case of divorced parents, the total deduction under this subdivision and under
subd. 32., per beneficiary by the formerly married couple, may not exceed $3,000, and the maximum amount that may be deducted by each former spouse is $1,500, unless the divorce judgment specifies a different division of the $3,000 maximum that may be claimed by each former spouse.
71.05(6)(b)33.b.
b. For an individual who is a nonresident or part-year resident of this state, multiply the amount calculated under
subd. 33. a. by a fraction the numerator of which is the individual's wages, salary, tips, unearned income and net earnings from a trade or business that are taxable by this state and the denominator of which is the individual's total wages, salary, tips, unearned income and net earnings from a trade or business. In this
subd. 33. b., for married persons filing separately “wages, salary, tips, unearned income and net earnings from a trade or business" means the separate wages, salary, tips, unearned income and net earnings from a trade or business of each spouse, and for married persons filing jointly “wages, salary, tips, unearned income and net earnings from a trade or business" means the total wages, salary, tips, unearned income and net earnings from a trade or business of both spouses.
