My federal Sch D has capital gain transactions listed on lines 1a & 8a (transactions that are not required to be reported on form(s) 8949). Theses transactions are not taxable in Wisconsin as I am a full year non-resident. The software allows me to exclude capital gain transactions that are reported on federal Sch D lines 1b, 2 & 3, as well as lines 8b,9 & 10. However, it does not provide the opportunity to exclude the transactions listed in federal Sch D lines 1a & 8a. The result is the Wisconsin form WD, Capital Gains & Losses, reflects these transactions causing them to be incorrectly taxed in Wisconsin. I'm thinking this is a software glitch and that an update is necessary. Does anyone see it differently or is there a work around?
You are filing a Wisconsin non-resident return for other income that you have earned from Wisconsin sources, correct? When you get to your Wisconsin return it will go through all of your income items and then give you the opportunity to exclude items that are not taxable in Wisconsin. You should exclude all of the items that are not from Wisconsin sources according to the Wisconsin rules.