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.
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 Guidance issued prior to this date that is contrary to the information in this document is superseded by this document, pursuant to sec. 73.16(2)(a), Wis.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.
MS 5-77Wisconsin Department of Revenue Customer Service Bureau PO Box 8949 Madison, WI 53708-8949
Phone: (608) 266-2772
Fax: (608) 267-1030Email:
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Guidance Document Number: 100281
March 17, 2021