We are Texas residents but collect pensions from the Wisconsin retirement system. do we have to pay Wisconsin state taxes on this money?

[BillM223]

If your plan is a qualified plan (you will have to contact the administrator of the plan to ask if the plan is qualified or not - they will know what this means), then your Wisconsin pension is NOT taxable by Wisconsin if you are a non-resident. So, presumably, unless you have other Wisconsin source income, you won't have to even file a Wisconsin return.

If the plan is a nonqualified deferred compensation plan, then it depends. 

• If received while the individual is a Wisconsin resident, the distribution is taxable to Wisconsin.
• If received while the individual is not a resident of Wisconsin, the distribution is taxable to Wisconsin if the payment is attributable to services performed in Wisconsin.

You can read more about this starting on page 20 in Wisconsin Pub 122.