Wisconsin State tax residency

[alexxli]

I was in WI for college from 2018. I was also on F-1 visa. In 2022, I become a tax resident for federal tax. I graduated in May and remain in WI to work on OPT. I lived in Wisconsin full 2022 in an rented apartment. Do I consider as tax resident of WI or non resident for 2022?

[JamesG1]

You became a tax resident in 2022 and file an IRS form 1040.  

Wisconsin full-year resident is an individual who was domiciled in Wisconsin for all of the taxable year.  Full-year residents file Wisconsin Form 1.

[alexxli]

Hi, thank you for replying, I was reading publication 122 of Wisconsin. In part 6 (B)  Example 2: You are a foreign student in this country with an "F" visa under the Immigration and Nationality Act. You may be classified for federal tax purposes as a nonresident alien or as a resident alien. Regardless of your alien status, you maintain your residence in your homeland. You are considered a nonresident of Wisconsin. A student with an "F" visa cannot become a resident of Wisconsin. 

(3) Standard deduction An individual who is a nonresident alien at any time during the year is not allowed a Wisconsin standard deduction. This includes all nonresident aliens and dual-status aliens who file their federal return on federal Form 1040-NR and all dual-status aliens who file their federal return on federal Form 1040 or 1040-SR. It does not include nonresident aliens and dual-status aliens who made the federal election to be taxed as a U.S. resident (see the Exception under "Filing Status, Married filing joint return" in Part 6.D.(2)). Note: For federal tax purposes, some nonresident aliens may be able to claim a federal standard deduction due to a tax treaty provision. This does not apply for Wisconsin. A nonresident alien is not allowed a Wisconsin standard deduction.

Based on the standard deduction part, does that means I also cannot use standard deduction.

[alexxli]

Hi, thank you for replying, I was reading publication 122 of Wisconsin. In part 6 (B)  Example 2: You are a foreign student in this country with an "F" visa under the Immigration and Nationality Act. You may be classified for federal tax purposes as a nonresident alien or as a resident alien. Regardless of your alien status, you maintain your residence in your homeland. You are considered a nonresident of Wisconsin. A student with an "F" visa cannot become a resident of Wisconsin.  

(3) Standard deduction An individual who is a nonresident alien at any time during the year is not allowed a Wisconsin standard deduction. This includes all nonresident aliens and dual-status aliens who file their federal return on federal Form 1040-NR and all dual-status aliens who file their federal return on federal Form 1040 or 1040-SR. It does not include nonresident aliens and dual-status aliens who made the federal election to be taxed as a U.S. resident (see the Exception under "Filing Status, Married filing joint return" in Part 6.D.(2)). Note: For federal tax purposes, some nonresident aliens may be able to claim a federal standard deduction due to a tax treaty provision. This does not apply for Wisconsin. A nonresident alien is not allowed a Wisconsin standard deduction.

Based on the standard deduction part, does that means I also cannot use standard deduction.

[DaveF1006]

Yes, you are correct. Despite being able to claim a Standard Deduction on your Federal return (due to the US-India treaty), you are not allowed claim the Wisconsin Standard Deduction on your Wisconsin state return.

As you read in Publication 122, Wisconsin law does not recognize federal treaty provisions for the purpose of the standard deduction. Wisconsin’s tax code (Section 71.05(22)(b)) explicitly states that "if you are a Nonresident Alien at any time during the year, your Wisconsin standard deduction is $0".