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New Member

bug in WI capital gain/loss subtraction?

I seem to have encountered a bug and wanted to report it, this seems to be the way to report bugs so here goes!  I entered all of my info via the step-by-step interface.  I then changed the view to Forms to look at the actual calculations.  I noted that in Federal I had a large amount of long-term capital gains and qualified dividends that lowered my taxes considerably but in Wisconsin there was no capital gain/loss subtraction at all on Line 10.  So I went to view WI Schedule WD and as soon as the form generated, my refund changed (by a considerable amount) and there was suddenly a figure on Line 10.  So the bug appears to be that the Line 10 capital gain/loss subtraction is not being applied unless the form is viewed.  I'm able to reproduce the problem.

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Level 2

bug in WI capital gain/loss subtraction?

this is community discussions so I doubt they will see the bug.  I have reported a bug also and have gotten no help or response this way.  If you find the right way, post it so others can be helped also.

 

Actually I just found t:

Use this website to contact TurboTax support during business hours - https://support.turbotax.intuit.com/contact/

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Employee Tax & Finance Expert

bug in WI capital gain/loss subtraction?

The Wisconsin Line 10 should only have a number if you have capital gains that are treated differently for tax purposes under Wisconsin rules. Your federal dividends and capital gains do not independently have an effect on Line 10 of your Form 1. 

 

There will be an entry on line 10 of Form 1 if you had capital loss carryovers that only apply to your state income, or you sold an asset that has a different tax basis for state purposes than for federal purposes (this typically applies to the sale of business property and not marketable securities.)  You could also have an entry here if you sold an asset for a gain that isn't taxable under Wisconsin law.  

 

If you have not yet completed the section in the step-by-step interface related to the Wisconsin capital gains adjustments, TurboTax will not populate Schedule WD.  If you enter information directly into the worksheet or on the form Schedule WD, TurboTax will take that information into account when calculating. 

 

Have you yet tried running the Review found by clicking on the Review tab?  Sometimes entries the program will allow you to make that are not consistent with other data will be detected here.  

 

 

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Level 3

bug in WI capital gain/loss subtraction?

@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.

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Returning Member

bug in WI capital gain/loss subtraction?

Assume I have to file an amended return to get the deduction now that I've already filed. I think Turbo has a similar problem in not using  Mortgage interest in the wisconsin itemized deduction calculation when taking the Fed Standard deduction. I'm losing my confidence in Turbo Tax accuracy.

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Level 3

bug in WI capital gain/loss subtraction?

@Tomsch  TT really has little incentive to provide a robust Wisconsin Tax Return app since WI has made their own FREE app available to the public (Wi efile) to file Wisconsin Taxes for FREE. Sort of takes away TT's competitive incentive.