Why does my Wisconsin schedule WD differ than my federal schedule D?

[soulwinner10]

Hello,

Why are only lines 1b and 8b from federal schedule D being used for Wisconsin schedule WD. The other lines 2,3,9, and 10 from my federal schedule D have capital losses, but they did not transport into the Wisconsin schedule WD...why did this happen and is this correct? As a result of this, my capital carryover for Wisconsin is not the same and much smaller than Federal's. 

[CesarJ]

Wisconsin Schedule WD is used to calculate Wisconsin capital gains and losses based primarily on specific parts of the Federal Schedule D. Wisconsin typically uses only lines 1b and 8b from Federal Schedule D because these lines represent the net short-term and long-term gains or losses after adjustments and certain exclusions.

Lines such as 2, 3, 9, and 10 on Federal Schedule D often include individual transaction details or separate categories of gains and losses that Wisconsin chooses not to incorporate fully. This selective use is due to differences in Wisconsin tax law and how the state calculates capital gains, which can affect state-specific deductions, exemptions, or carryovers.

As a result, your Wisconsin capital loss carryover might be smaller than the federal carryover because Wisconsin only considers the adjusted net amounts from lines 1b and 8b, not all detailed losses reported on the federal form.

This treatment is correct per Wisconsin tax rules and explains why your Wisconsin Schedule WD and federal Schedule D differ in reported capital losses and carryovers.

To review or adjust your Wisconsin Schedule WD capital gains and losses in TurboTax Online, follow these steps:

1. Go to the State Taxes section.
2. Select Wisconsin from your state return list.
3. Navigate to the capital gains and losses area within your Wisconsin state return (this is typically under Income or a specific Capital Gains section).
4. Look for the screen or form labeled Schedule WD.
5. Review the amounts that imported from your federal Schedule D, specifically lines 1b and 8b.
6. If you need to adjust capital losses not carried over (like lines 2, 3, 9, or 10 from your federal Schedule D), you may need to enter a manual adjustment or worksheet in this section, depending on Wisconsin tax rules.
7. Follow on-screen prompts to make any manual changes to capital gains or losses for Wisconsin.

[soulwinner10]

Hi,

Well, are you saying that lines 1b and 8b from federal schedule D are the only lines that Wisconsin schedule WD allows and is correct per state law? If so, then why would I need to manually add lines 2, 3, 9, and 10 from the Federal? However, according to 

Pub 103 Reporting Capital Gains and Losses for Wisconsin by Individuals, Estates, and Trusts

all lines from federal should have been transferred over from federal schedule D not only lines 1b and 8b. There is not an option to add in lines 2,3, 9, and 10 on TT anyway.

Where did you receive this information that, "This selective use is due to differences in Wisconsin tax law and how the state calculates capital gains, which can affect state-specific deductions, exemptions, or carryovers" because I do not see it written in their Pub 103. Thank You

So, then should I proceed with my TT filing although my schedule WD does not match the federal schedule D? That is a lot of capital losses that are primarily short-term, yes un-covered, that I cannot use nor will they carryover for future use. In the PUB103 it states that if I have losses that exceed the $3,000 deduction limit- and I do- that I can carry them over. What happens to all of my capital losses from lines 2,3, 9, 10 for schedule WD....do they just vanish and are disallowed? Thank You.

[DaveF1006]

Since TT isn't giving you an obvious "add line" button on the summary screen, you usually have to trigger the manual adjustment section:

1. Go to the State Taxes section and start the Wisconsin return.
2. Look for a screen titled "Adjustments for Capital Gains and Losses" or "Here's the income that Wisconsin handles differently."
3. You may need to select "Edit" next to Capital Gains and Losses.
4. If the software still won’t let you edit those lines, you may need to enter a “Wisconsin Adjustment” (a subtraction) for the total amount of losses that didn’t transfer. This helps make sure your “Wisconsin Income” matches your actual numbers.