topic Re: Illinois IRA distributions indirectly taxed on Non-Resident Wisconsin in Get your taxes done using TurboTax

Illinois IRA distributions indirectly taxed on Non-Resident Wisconsin

447debbie — Tue, 10 Feb 2026 10:57:06 GMT

My Illinois IRA distributions is listed on Wisconsin 1NPR in the Federal Column but not in the Wisconsin column. So far so good.

Line 33 on Wisconsin 1NPR states to fill in the larger of Wisconsin income on line 30, or Federal income from line 31. The federal income, which includes my IRA distribution is the larger item.

Thus, when it comes time to compute the amount of tax paid to Wisconsin, it indirectly taxes me based on the amount of my Federal income, which includes by IRA distribution.

Should this IRA distribution somehow be included in the Itemized Deduction Credit on 1NPR line 39, the itemized deduction credit? If so, how would one go about doing this as I do not see anything in Turbo Tax Premier Windows Platform that fills in any of these forms.

Re: Illinois IRA distributions indirectly taxed on Non-Resident Wisconsin

Mike9241 — Fri, 23 Feb 2024 18:05:19 GMT

on wisconsin 1NPR a ratio is computer on line 32

the WI tax after adjustments is computed on line 43

the ratio on line 32 is multiplied by the tax on line 43 to come up with your Wisconsin tax bill.

Re: Illinois IRA distributions indirectly taxed on Non-Resident Wisconsin

447debbie — Mon, 26 Feb 2024 12:46:34 GMT

Mike 9241
https://ttlc.intuit.com/community/user/viewprofilepage/user-id/2798147

And that number comes from income that includes my IRA distribution. So again, why is it ok for Wisconsin to tax non-Wisconsin income, albeit indirectly?

See Line 33. I am effectively put into a higher tax bracket, based on my federal income including my Illinois IRA distribution, then the tax for Wisconsin is calculated based on that. Being put into a higher tax bracket causes the WI tax to be higher, and THEN the percentage is taken from there. However....it still taxes me more based on my federal income which includes my IRA distribution in Illinois.