Wisconsin 2K-1 for 2020

[Mel5719]

I received a Wisconsin 2K-1 for 2020 from my mother’s estate which has one addition entry that is not included on the Schedule K-1. On Line 11 it has interest for savings bonds of $4877.00. I am using Turbotax Premier and need to know how do I enter this amount on my Wisconsin taxes?

[ErnieS0]

Enter this amount in Wages & Income even though it is being reported on your Wisconsin 2K-1.

• Type k-1 in Search in the upper right
• Click Jump to k-1
• Say Yes to reviewing your K-1(s)
• Update your K-1 from Form 1041 Estates and trusts
• On the Estates and Trusts K-1 Summary, Edit the K-1
• Continue to Enter amounts from boxes 1 and 2
• Enter 4,877 in U.S. Bonds (Nontaxable to states) Included in Box 1. This will move the U.S. Savings bond amount to Schedule SB on your Wisconsin return.

Because U.S. savings bonds are issued by the federal government you do not have to pay state tax or local taxes on the earned interest. Learn more from the Wisconsin Department of Revenue at US Savings Bonds.

[Mel5719]

This recommendation will not work for the 2K-1 we received. When we enter the Wisconsin 2K-1 $4,877 amount into TurboTax on the Estates and Trust K-1 Summary in boxes 1 and 2 it put the $4,877 onto Form 1041 Schedule K-1 Worksheet – Estates And Trusts on Line 1 Interest income and also U.S. Bonds interest (nontaxable to states) included in line 1. This increased our federal taxes which would not be correct since we are trying to add this information to our Wisconsin taxes only.

After doing some more research online we believe that the Wisconsin 2K-1 information must be put on the Wisconsin Schedule AD form on line 30 Partnership, limited liability company, trust, estate adjustments. I could not find a place within TurboTax Wisconsin software side to make the entries necessary to complete line 30. Could you please provide us with information on how to enter the name of the estate, FEIN and amount ($4,877) onto the Wisconsin Schedule AD form on line 30?

You are correct that we then need to add the $4,877 amount onto the Wisconsin Schedule SB on Line 2 United States government interest but again we need to know how to do this using the TurboTax Wisconsin software side to complete this form?

Thank you

[ErnieS0]

I suggest you speak live with one of our Tax Experts who can look at your Form 1041 Schedule K-1 and your Wisconsin 2K-1. It is unusual that you WI 2K-1 would include an amount for savings bond interest when none was reported on the federal K-1.

Refer to How do I schedule my review using TurboTax Live? or Contact us if using  Desktop/CD.

Wisconsin Schedule AD is used to report additions to income. U.S. government interest is not taxable to WI so adding Savings Bond interest on WI Schedule AD will add the $4,877 to your state return.