Although the federal American Rescue Plan allows an exclusion of up to $10,200 of unemployment compensation (UC) on 2020 federal income tax returns, current Wisconsin law does not for state returns, the Wisconsin Department of Revenue (DOR) explains in newly published guidance. The DOR advises:
- If you already filed your 2020 Wisconsin income tax return and are amending your federal return solely to exclude UC, do NOT amend your return, because there is no change to the amount of taxable income or tax due to Wisconsin.
- If you have not filed your 2020 Wisconsin return, you must add the amount of UC excluded on your federal return on lines 2h, 2i, or 2j of Wisconsin Schedule I.
If state laws change regarding UC, the DOR will update this page.