Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

Federal tax prep > Ch 10 - Questions (Wisconsin State Taxes) > Flashcards

Ch 10 - Questions (Wisconsin State Taxes) Flashcards

Chapter 10 State

1
Q

What is the main Wisconsin Income Tax Form

A

Form 1

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

Is there a simple form for WI Income tax?

A

Form WI-Z (Easy form) or Form 1A (Short Form) may be used if meet qualifications

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

What is Form WI-Z used for?

A

Resident taxpayers under age 65 who have income only from W-2.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

What is Form 1A used for?

A

Residents who have income from wages, interest, and pensions, but who have no adjustments to income or credits.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

What is Form 1NPR

A

Must be filed by Wisconsin part-year residents and non-residents.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

What income is used to start Form 1?

A

Federal adjusted gross income

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

What do lines 2-4 have on Form 1?

A

Income items that were not taxable for federal purposes, but that are taxable for Wisconsin, so must be added to Federal AGI.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

What is the result of the Federal AGI plus the taxable state items called on the state tax?

A

Wisconsin income

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

How is Wisconsin standard deduction determined?

A

Mostly from a table based on income and filing status.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

What is the exemption amount used

A

$700 per exemption from the federal return, plus an additional $250 for taxpayers and spouses age 65 and older

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

How is Wisconsin tax calculated?

A

Tax tables

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

How are itemized deductions treated on Wisconsin tax?

A

They are treated as a credit.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

What is Page 4 on the Wisconsin tax form?

A

It contains Schedule 1 - itemized deduction credit, and Schedule 2 - Married Couple Credit when both spouses are employed

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

How is Wisconsin residency determined?

A

If their domicile is Wisconsin for the entire year.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

How is domicile determined?

A

It is not necessarily where they reside. A taxpayer may be domiciled in one place, but reside in another. Domicile is established by intent - the place the taxpayer intends to call home. Where the taxpayer will return after an avsence, whether short or long.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

In order to change domicile from WI to another state, what requirements must be met?

A

Must intend to abandon the WI domicile and take actions consistent with that intent.

Must intend to establish a new domicile and take actions consistent with that intent.

Must be present in the new domicile.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

How many domiciles are taxpayers allowed to have?

A

Only one. Even if they have more than one home or are a resident of more than one state.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

What is a statutory residency test?

A

Any state residency test other than domicile. Generally requiring the taxpayer’s physical presence within a state for a set number of days.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

Does Wisconsin have a statutory residency test?

A

No

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

What are reciprocal agreements?

A

Agreements between states applying to taxpayers who are residents of one state and work in another. They usually allow taxpayers to only be taxed in their state of residence.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

What states do Wisconsin have reciprocal agreements with?

A

Illinois, Indiana, Kentucky, and Michigan

22
Q

What types of income do the WI reciprocal agreements cover?

A

Salaries, wages, tips, fees, commissions, bonuses, and other compensation for services rendered as an employee.

23
Q

What types of income do the WI reciprocal agreements NOT cover?

A

Rental income, pension income, lottery winnings, and other income not to do with employment.

24
Q

What is a Wisconsin part-year resident?

A

Taxpayer moving into WI with intent to stay indefinitely, and taxpayer moving out of WI with the intent to leave permanently.

25
Q

How are part-year residents taxed in WI?

A

During the resident portion of the year, they are taxed by the state on all income, regardless of source, unless they are exempt. During the nonresident portion of the year, they are taxed only on WI-sourced income.

26
Q

What form do part-year residents file in WI?

A

Form 1NPR

27
Q

What form do nonresidents file in WI?

A

If income is received from WI sources, a nonresident will file form 1NPR

28
Q

What are the Gross Income Filing Requirements in WI?

A

Single $11080/$11330 (age 65+)

MFJ $20610/$20860 (1 age 65+)/$21110 (2 age 65+)

MFS $9830/$10080 (age 65+)

HOH $14100/$14350 (age 65+)

Dependent: Income more than $1050 with $351 unearned OR
$10380 Single, $13400 (HOH), $19210 (MFJ) $9130 (MFS)

Part-year residents and nonresidents: $2000 or above.

29
Q

What do Federal QW filers file as in WI?

A

HOH

30
Q

Are taxpayers required to use the same filing status on WI as they did on Federal?

A

No. If the qualify for more than 1 filing status, they can choose.

31
Q

What are the requirements for Single filing status for WI?

A

Never been married or were married but are legally separated under a final decree of divorce or separate maintenance, or widowed before the beginning of the tax year and have not remarried but do not have a qualifying dependent child.

32
Q

What are the requirements for Married filing statuses in WI?

A

Taxpayers who are married on the last day of the tax year may file MFJ or MFS. Generally MFJ is more adventageous

33
Q

What are the requirements for HOH filing status in WI?

A

Meet the requirements for HOH on federal tax return.

34
Q

How is property ownership handled in WI?

A

WI is a community property state. Money and property acquired during a marriage belongs to each spouse equally, regardless of who earned or acquired it. Community property is called marital property. Separate property is called individual property.

35
Q

What things are individual property?

A

Inherited property, gifts, things designated in a written marital agreement, things designated by a court order.

36
Q

What happens if marital property is mixed with individual property?

A

The mixed property becomes marital property unless the individual property can be traced.

37
Q

If a married taxpayer must file jointly because other spouse will not sign a return, how should income be reported?

A

Each spouse should report one-half of the community income on their separate return. However, it is not always possible. If information cannot be obtained, the person would file with only their information and attach a statement to the return indicating that none of the relevant information is available.

38
Q

What items are added to Federal AGI for the state return?

A

State and municipal interest

Capital gain/loss addition

Distributions from Edvest and Tomorrow’s Scholar college savings account

New operating loss carryover

Lump sum distributions reported on Form 4972

Farmland preservation credit

Excess distributions from passive foreign investment companies

Expenses paid to related entities

Amounts not deductible for WI

Addition for computed credits

Depreciation adjustments.

39
Q

What obligations are exempt from WI tax in terms of state and municipal interest?

A

Public housing authority or community development authority bonds issued by municipalities located in WI.

Wisconsin municipal redevelopment authority bonds.

Bonds issued by Puerto Rico, Guam, the Virgin Islands, the Northern Mariana Islands, or the Government of American Samoa.

40
Q

What things are subtracted from Federal AGI (meaning items are taxable on the Federal level but not state level)?

A

US Government interest

Social Security and Railroad retirement, unemployment, and sickness benefits.

Federal, local, and state retirement benefits.

Some or all of unemployment compensation

State income tax refunds

Retirement income

Medical care insurance

Child and dependent care expenses

Tuition and fees expenses

Private school tuition

Contributions to an Edvest or Tomorrow’s Scholar account

Military retirement

Reserve or National Guard Income

Native American income

41
Q

What needs to be completed to determine if a portion of unemployment income may be subtracted from federal AGI?

A

Unemployment Compensation Worksheet

42
Q

What needs to be completed for non-self-employed taxpayers who want to subtract some or all of their medical care premiums from Federal AGI?

A

Worksheet 2 - Medical Care Insurance Worksheet

43
Q

What needs to be completed for taxpayers who want to subtract some or all of their premiums on a long-term care insurance policy?

A

Long-Term Care Insurance Worksheet

44
Q

Can expenses that quilified for the Federal Child and Dependent Care Credit be subtracted from AGI for WI?

A

Yes, up to $3000 for one dependent, or $6000 for more than one. Line 6 of Federal Form 2441 Child and Dependent Care Credit.

If married, must be MFJ, or meet three requirements - lived apart for last 6 months of year, qualifying person live with taxpayer for more than half the year, taxpayer must have paid more than half the cost of keeping up the household.

45
Q

Can tuition and fees be claimed on WI tax?

A

Yes, up to $6958 per student for tuition and fees (cannot be taken for fees paid with tax-free scholarships or grants or college savings program).

There is a phaseout amount based on Federal AGI.

46
Q

What are the phaseout amounts for tuition and fees expenses subtraction?

A

Single or HoH $53160 with ineligibility at $63790

MFJ $85050 with ineligibility at $106310

MFS $42530 with ineligibility at $53160

47
Q

How is the tuition and fees amounts calculated to account for the phaseout?

A

The Tuition Expense Worksheet

48
Q

Is private school tuition subtractible from Federal AGI?

A

Yes, limited to $4000 for each elementary school student, and $10000 for each secondary school student.

49
Q

What is completed in order to subtract private school tuition from Federal AGI?

A

Schedule PS, Private School Tuition and Instructions.

50
Q

How are contributions to an Edvest or Tomorrow’s Scholar College Savings Account handled for WI?

A

Complete Schedule CS, College Savings Account. May subtract the amount contributed, up to $3140 ($1570 for MFS). Unused portion may be carried forward.

51
Q

In what case of W-2 income, may it be subtracted from Federal AGI for WI tax?

A

Members of the reserves or national guard who are called into active service. This does not apply to regular weekend and two-week annual training.

52
Q

How is Native American Income handled in WI?

A

If the taxpayer lives on their reservation where they are an enrolled member of the tribe, this income is exempt from WI tax:

Wages from working on their tribal reservation

Wages from working outside of WI

Military pay

Wages earned off the reservation within WI are taxable.

Federal tax prep (33 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions