cancel
Showing results for 
Search instead for 
Did you mean: 
Highlighted
Level 3

Is this correct usage of capital gain for state of Wisconsin?

Lived in Wisconsin and sold Michigan property in 2018. State of Wisconsin is applying capital gain information from Michigan. Is this correct or should it only be on federal and Michigan state form?

6 Comments
Level 12

Is this correct usage of capital gain for state of Wisconsin?


@MrsWall08 wrote:

Lived in Wisconsin and sold Michigan property in 2018. State of Wisconsin is applying capital gain information from Michigan. Is this correct or should it only be on federal and Michigan state form?


That is correct, but you will almost certainly be able to get a credit for taxes paid to the State of Michigan on your Wisconsin income tax return (see below).

 

This is the primary rationale for preparing a state income return for a non-resident state first (so you know the amount of tax paid to input on your income tax return for your state of residence). Also note that you may have to enter the amount of tax paid to Michigan on your Wisconsin income tax return manually.

 

See https://www.revenue.wi.gov/TaxForms2017through2019/2018-ScheduleOS-inst.pdf

Level 11

Is this correct usage of capital gain for state of Wisconsin?

if you are using TT for the two state returns, TT should handle this automatically 

Level 12

Is this correct usage of capital gain for state of Wisconsin?


@NCperson wrote:

if you are using TT for the two state returns, TT should handle this automatically 


That is possible but regardless --> To ensure accurate calculations, we strongly recommend preparing your nonresident state return before you prepare any resident or part-year state returns. 

 

See https://ttlc.intuit.com/questions/1901271-how-do-i-file-a-nonresident-state-return

Level 3

Is this correct usage of capital gain for state of Wisconsin?

Turbo pulled in my Wisconsin state automatically before my other two states. So I completed it in this order Wi( part year), Michigan( non resident), IL (part year). Should I delete the returns and revise them so Michigan is first? Asking because I do not want issues and seems like my states were bringing up some conflict-ions originally. 

Level 11

Is this correct usage of capital gain for state of Wisconsin?

Look at the return where you are a resident and you should see a credit for the taxes paid to the other two states

While TT suggests doing the non- resident first, I can’t imagine it really matters .... the software recalculates every time you change an input ... and.... if there software was calculating incorrectly, their guarantee would kick in for an incredible number of users who file in multiple states.... could be over a million!

I am actually surprised TT states the order as much of the information is filled in every time you enter a document .

Low risk and if it is wrong, TT would cover penalties and interest
Level 12

Is this correct usage of capital gain for state of Wisconsin?


@NCperson wrote:
While TT suggests doing the non- resident first, I can’t imagine it really matters .... the software recalculates every time you change an input ... and.... if there software was calculating incorrectly, their guarantee would kick in for an incredible number of users who file in multiple states.... could be over a million!

What is not covered in the TurboTax guarantee is exactly the subject of this thread; overpaying taxes due to either a miscalculation or an input failure. Thus, it is best to follow the advice provided by the developers of the software; do the non-resident return first.

 

In addition, I can state unequivocally that, although the software recalculates whenever an input is changed on the federal side, the state returns I have tested do not exhibit the same behavior; I have had to enter figures manually on test state returns. The figures primarily transfer from federal to state, but do not always appear in the proper place on the state return and/or need to be entered or confirmed manually.