You may subtract any amounts not taxable by Wisconsin (less related expenses except those expenses which are used to calculate the Wisconsin itemized deduction credit) which have been included as income on your federal tax return or excluded from federal deductions and not included on lines 1 through 49 above. Write a brief description of the subtraction on the line provided.
Example Wisconsin doesn’t tax certain relocation assistance payments received by persons displaced by condemnation, subject to the conditions in sec. 32.19, Wis. Stats.
State Grant Programs During the COVID-19 Pandemic
The following income is exempt from Wisconsin income and franchise tax:
• Income received from the state of Wisconsin with money received from the coronavirus relief fund authorized under 42 USC 801 to be used for any of the following purposes:
◦ Grants to small businesses
◦ A farm support program
◦ Broadband expansion
◦ Privately owned movie theater grants
◦ A nonprofit grant program
◦ A tourism grants program
◦ A cultural organization grant program
◦ Music and performance venue grants
◦ Lodging industry grants
◦ Low-income home energy assistance
◦ A rental assistance program
◦ Supplemental child care grants
◦ A food insecurity initiative
◦ Ethanol industry assistance
◦ Wisconsin Eye
• Income received in the form of a grant issued by the Wisconsin Economic Development Corporation during and related to the COVID-19 pandemic under the ethnic minority emergency grant program.
Income from these programs is included in federal income pursuant to sec. 61 of the Internal Revenue Code, unless an exception applies. For Wisconsin, this income should be excluded from federal adjusted gross income on line 50. Use a description similar to “Wisconsin COVID-19 Program Funds.”
Note: Expenses paid for with these programs and deducted in the computation of federal adjusted gross income are not required to be added back on the Wisconsin return.
CAUTION
• Do not use this subtraction when using a different federal election for Wisconsin and federal tax purposes. Instead, complete a pro forma federal return using the election chosen for Wisconsin or adjust using Schedule I. The federal adjusted gross income from this pro forma federal return or from Schedule I is entered on line 1 of Form 1. If completing a pro forma federal return, attach the pro forma federal return to your Wisconsin return instead of the return sent to the IRS.
• Do not use this subtraction for wages which are taxable in another state as well as Wisconsin. Instead, include these wages in Wisconsin income and see page 22 of the Form 1 instructions for how to claim a credit for net tax paid to another state