TurboTax Bug: Can’t Exclude Capital Gain from Non-Resident Wisconsin Income

[nello]

My wife and I are Illinois residents and are married filing jointly.  She inherited a share of her mother’s house in January 2021 that was sold in July 2021.  She received a 1099-S mailed to our Illinois address.

I’ve been told that we must file a non-resident Wisconsin return (form 1NPR) because the Gross Proceeds (Box 2 on her 1099-S) is greater than $2K (even though the sale is a small, long-term capital loss because the basis is higher than the net proceeds after brokerage commissions, etc).

We are retired and have no income in 2021 other than 1099s.  The only income we earned in Wisconsin is this small loss on the sale of her mother’s house.

I completed the federal 1040 return and am working on 1NPR.  Unfortunately, I’m unable to exclude all of our non-Wisconsin capital gains/losses from 1NPR.

Yes, I checked the “Don’t report on my Wisconsin return” box on this adjustment screen: 

You can see all the Wisconsin capital gain/loss adjustment screen settings here.

Wisconsin Schedule WD has these two errors:

Wisconsin Schedule WD Error	Source
Line 1a, Short-Term Gain	Fed Schedule D, Line 1a, Short-Term Gain.  This amount originates from 1099-B, Short-term transactions for which basis is reported to IRS (Box A checked)  THIS IS A BUG since there is no way in TurboTax Wisconsin to exclude Box A transactions amounts from Wisconsin Schedule WD.
Line 9a, Long-Term Gain	Fed Schedule D, Line 8a, Long-Term Gain.  TurboTax Wisconsin screen titled “Long-Term Capital Gains and Losses Summary” lists data from federal 1099-B entered that report long-term gains. Unfortunately, editing these items and checking “Don’t report on my Wisconsin return” excludes only Box E items.  Box D items are NOT excluded. THIS IS A BUG since there is no way to exclude Box D transactions from Wisconsin Schedule WD.

How do I report these bugs?

[nello]

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@nello wrote:

How do I report this as a bug?

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I am using:

• TurboTax 2021 Deluxe for Mac (Application 2021.r20.081 Build Date Mar 6, 2022 at 10:59:02 AM)
• Per Fed Ind 1040 Formset 2021.12035 3/6/22, 10:59 AM
• Per Illinois Ind Formset 2021.11092 3/6/22, 10:59 AM
• Per Wisconsin Ind Formset 2021.11305 3/6/22, 10:59 AM

I selected “Send Tax File to TurboTax Agent “ from the “Help” menu in the Mac menubar.  It generated “token number” 951141.

What’s the next step in reporting a bug?

[nello · Accepted solution]

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@nello wrote:
What’s the next step in reporting a bug?

I called the Intuit TurboTax customer service phone number [phone number removed]) and an investigation case number INV-19226 was opened.

Still do NOT have a workaround.

UPDATE 3/15/2022:  See workaround.

[nello]

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@nello wrote:
TurboTax customer service phone number [phone number removed])

Not sure who/what removed the phone number, human or artificial intelligence/bot.

You can find the phone number I called on the TurboTax Contact Us page.

[fairwillett]

Working on Wisconsin Tax as a resident of Florida.  Since no income should be claimed for income of capital gains why can't I get turbo tax to accept 0's

[nello]

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@fairwillett wrote:

Working on Wisconsin Tax as a resident of Florida.  Since no income should be claimed for income of capital gains why can't I get turbo tax to accept 0's

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I’m sorry but I don’t understand your problem.  Would you please explain:

1. What is happening on which screens or forms, and
2. What you think should happen instead.

Screen shots would help a great deal.  

Finally, did you read this long message on the second page of a long thread that shows exactly how to enter capital gain exclusions?  Here’s the work around that I had to use.