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Can I subtract Wisconsin Retirement Benefits on my Wisconsin return?

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Question
Can I subtract Wisconsin Retirement Benefits on my Wisconsin return?

Answer

Retirement Income Exclusion 

Subtract up to $5,000 of certain retirement income if you (and/or your spouse if married filing a joint return):

• You (or your spouse if married filing a joint return) were 65 years of age or older on December 31, 2018, and

• Your federal adjusted gross income (line 1 of Form 1) is less than $15,000 ($30,000 if married filing a joint return).

If married filing a separate return, the sum of both spouses’ federal adjusted gross incomes must be less than $30,000.

Federal Retirement Benefits

You may subtract payments received from a federal retirement system provided:

(1) You were retired from the system before January 1, 1964, or

(2) You were a member of the system as of December 31, 1963, retiring at a later date and payments you receive are from an account established before 1964, or

(3) You are receiving payments from the system as the beneficiary of an individual who met either condition 1 or 2. 

See “05 Local and State Retirement Benefits” on page 21 for further information. The limitations and examples that apply to local and state retirement benefits also apply to federal retirement benefits. A “federal retirement system” is a United States government civilian employee retirement system. Examples of such retirement systems include the Civil Service Retirement System and the Federal Employees’ Retirement System. These retirement benefits are paid from the U.S. Office of Personnel Management. Payments from the federal Thrift Savings Plan do not qualify for the subtraction.

Railroad Retirement Benefits, Railroad Unemployment In surance, and Sickness Benefits 

Wisconsin does not tax amounts received from the U.S. Railroad Retirement Board. You may subtract railroad retirement benefits included on line 4b of your federal Form 1040.

Local and State Retirement Benefits 

You may subtract any payments received from the retirement systems listed below provided:

(1) You were retired from the system before January 1, 1964, or

(2) You were a member of the system as of December 31, 1963, retiring at a later date and payments you receive are from an account established before 1964, or

(3) You are receiving payments from the system as the beneficiary of an individual who met either condition 1 or 2.

Your subtraction cannot be more than the amount of such payments that you included in your federal income.

The specific retirement systems are:  Milwaukee City Employees, Milwaukee City Police Officers, Milwaukee Fire Fighters, Milwaukee Public School Teachers, Milwaukee County Em ployees, Milwaukee Sheriff, and Wisconsin State Teachers retirement systems.

Military and Uniformed Services Retirement Benefits 

You may subtract retirement payments received from:

(1) The U.S. military retirement system (including payments from the Retired Serviceman’s Family Protection Plan or the Survivor Benefit Plan). These retirement benefits are paid from the Defense Finance and Accounting Service. (

2) The U.S. government that relate to service with the Coast Guard, the commissioned corps of the National Oceanic and Atmospheric Administration, or the commissioned corps of the Public Health Service.

Your subtraction cannot be more than the amount of such retirement payments that you included in your federal income.


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Article Details
Views: 833 Created on: Jun 15, 2013
Date updated: Dec 27, 2018
Posted in: States, Wisconsin

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