Unemployment Compensation on 2020 Wisconsin Income Tax Returns

The federal American Rescue Plan Act of 2021 (Public Law 117-2), signed into law on March 11, 2021, allows an exclusion of up to $10,200 of unemployment compensation (UC) on the 2020 federal income tax return. This federal law does not apply for Wisconsin tax purposes. This article will be replaced if Wisconsin law changes.

Wisconsin provides a subtraction from income for UC. After including all of your UC in federal adjusted gross income on your Wisconsin return, determine if you are eligible for the Wisconsin subtraction by completing the worksheet on page 2 of the Wisconsin 2020 Schedule SB instructions.



Applicable Laws and Rules

This document provides statements or interpretations of ch. 71, Wis. Stats. enacted as of March 17, 2021. Laws enacted and in effect after this date, new administrative rules, and court decisions may change the interpretations in this document. Guidance issued prior to this date that is contrary to the information in this document is superseded by this document, pursuant to sec. 73.16(2)(a), Wis. Stats.

FOR QUESTIONS OR COMMENTS CONTACT:

MS 5-77
WISCONSIN DEPARTMENT OF REVENUE
Customer Service Bureau
PO Box 8949
Madison, WI 53708-8949
Phone: (608) 266-2772
Fax: (608) 267-1030
Email additional questions to DORIncome@wisconsin.gov

The department welcomes your input on our guidance. Submit comments on this guidance document.

Guidance Document Number: 100281

March 17, 2021