@SusanY1 The following is from the 2018 Wisconsin Form 1 Instructions. The 2019 Wisconsin Form 1 Instructions are not yet published, but I expect them to be the same. TT insists on using Schedule WD even when it is not required, yet does not always generate it. This is the issue.
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Line 10 Capital Gain / Loss Subtraction
If your federal adjusted gross income includes capital gains and/or losses from line 13 of federal Schedule 1 (Form 1040), you must complete Schedule WD. You must also complete Schedule WD if your federal adjusted gross income does not include capital gains and/or losses, but you have a capital loss carryover for Wisconsin tax purposes.
Schedule WD determines whether any capital gain/loss subtraction must be reported on line 10. For example, after completing Schedule WD, you may be able to include an amount as a subtraction on line 10 because you qualify for the 30% long-term capital gain exclusion (60% in the case of farm assets).
All amounts must be filled in on line 10 as positive numbers.
EXCEPTION If the only amount reported as a capital gain on line 13 of your federal Schedule 1 (Form 1040) is a capital gain distribution from a mutual fund or real estate investment trust and you have no Wisconsin capital loss carryover, you may claim a long-term capital gain exclusion on line 10. Fill in 30% of the amount of the capital gain distribution on line 10. Do not complete Wisconsin Schedule WD.
If you are a shareholder of a tax-option (S) corporation that elected to be taxed at the entity level, do not report the amount of capital gain or loss from Schedule 5K-1 on Schedule WD. In addition, do not include the amount of capital gain or loss from the tax-option (S) corporation in the modification for lines 4 or 11, code 51. These items have already been removed from Wisconsin income when you completed Schedule WD. See the Schedule WD instructions for more information.
