I am a non-resident of Wisconsin. I had wages in Wisconsin which is taxable. Are interest, dividend and investment gains taxable in Wisconsin when they are taxed by my home state?
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This Wisconsin tax publication details the types of non-resident income that are taxable by Wisconsin:
https://www.revenue.wi.gov/DOR%20Publications/pb122.pdf
No, Wisconsin should only tax investment income from Wisconsin sources.
Wisconsin Department of Revenue states:
What income does Wisconsin tax?
Nonresidents
Wisconsin taxes only your income from Wisconsin sources.
Depending upon the nature of the interest, dividend and investment income, make sure that the income is clearly defined as belonging to the home of residence and not the nonresident state. For instance, dividends can be identified by state in box 14. Interest income can be identified by state in box 15.
In TurboTax Desktop, this income may be assigned from Wisconsin to the home state by correcting the Non-Wisconsin amount on the Income Allocation Worksheet.
I was a non-resident of Wisconsin for all of 2024.
Yet, Turbotax is automatically populating $6079 of dividends I earned (in a Vanguard brokerage account) into the "Wisconsin" column of income.
Which is triggering me to owe Wisconsin a few hundred dollars in taxes.
Which doesn't seem right to me.
Because I think Wisconsin Nonresidents should put zero in this column, for dividend income that didn't originate in Wisconsin.
Any ideas on a fix?
Yes, in the Wisconsin interview you'll be able to allocate income between WI and Federal amounts carried over. Here's more info on How to File a Non-Resident State Return.
Look for the page titled 'Let us know if you made any non-Wisconsin income...' where you can enter your Dividends as 'Non Wisconsin Income'. Results show on the Income Allocation Worksheet.
Your Non-Resident return will only report WI source income.
Thanks @MarilynG1
Do I need to download the Desktop version of Turbotax to make this change?
I've always only used Turbotax online.
Ah; I think I see what I was doing wrong.
I thought in the box below I was supposed to enter the portion the the dividends that are Wisconsin income ($0).
But I'm actually supposed to enter my NON-Wisconsin income ($6079).
____
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