It depends because Generally, interest earned on state and municipal bond obligations is subject to Wisconsin income tax and should be included as an addition to federal adjusted gross income on your Wisconsin income tax return. However, interest earned on specific state and municipal bond obligations is exempt from Wisconsin and federal income tax.
See line 1 of the instructions for Schedule AD or Schedule M for a list of state and municipal bond obligations whose interest is exempt for federal and Wisconsin. You can also refer to sec. Tax 3.095 of the Wisconsin Administrative Code.
Check this thoroughly to see if there are specific state or municipal bonds are exempt or not.
Wisconsin Municipal Bond Interest Treatment
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