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latadr
New Member

Capital Gains for a Wisconsin non resident

I work for a company in Wisconsin and live in California and hence have to file both states as a resident in California and non-resident in Wisconsin. I have Capital gains reported in Federal return. However, Wisconsin took 70% of it to tax me and California took the entire amount as income (to tax me as well). Is this right? I did not expect to pay any capital gains in Wisconsin.  Please advise Thanks!

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1 Reply
DanielV01
Expert Alumni

Capital Gains for a Wisconsin non resident

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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