Wisconsin can tax the capital gains if the source of the income is from Wisconsin. This is not the case with stocks or cryptocurrency sales, but might be the case if you sold property in Wisconsin.
There is also another possibility: Wisconsin is not actually taxing your capital gains, but are factoring in your capital gains to determine Wisconsin tax. Many states use this method. In this method, the state pretends that all income is taxed in the state, and then prorate the tax to the amount of income that is actually taxable in the state.
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