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2024 Wisconsin Schedule ET-OS Instructions
Part B –Calculation of Credit (Tax paid on behalf of Wisconsin resident members on a
composite return)
Line 6 - Fill in the amount of income taxable to the other state that is also taxable to Wisconsin for the
resident partner(s) or shareholder(s) (for example, ordinary income from trade or business activities, long-
term capital gain, interest, etc.). Note: If the manufacturing and agriculture credit is computed, do not
include in the income taxable to both Wisconsin and the other state the amount of qualified production
activities income used to compute the manufacturing and agriculture credit. Only reduce the income by
the amount of qualified production activities income allocated to the partners or shareholders for whom
the partnership or tax-option (S) corporation is paying tax on a composite income tax return with the other
state.
Line 7 - For each state, fill in the amount of income that is taxed by the other state before subtracting any
standard or itemized deductions or personal exemptions. Note: If the manufacturing and agriculture credit
is computed, do not include in the total income taxed by the other state the amount of qualified
production activities income used to compute the manufacturing and agriculture credit. Only reduce the
income by the amount of qualified production activities income allocated to the partner or shareholders
for whom the partnership or tax-option (S) corporation is paying tax on a composite income tax return
with the other state.
Line 9 - For each column, from the income tax return of the other state, fill in the net tax amount after
any required proration and after subtracting all credits (both nonrefundable and refundable credits).
Include a copy of the other state's composite income tax return. Note: If the manufacturing and agriculture
credit is computed, do not include in the net tax paid to the other state the amount of tax paid on the
qualified production activities income used to compute the manufacturing and agriculture credit. Only
reduce the tax by the amount of tax paid on qualified production activities income allocated to the
partners or shareholders for whom the partnership or tax-option (S) corporation is paying tax on a
composite income tax return with the other state.
Part C –Credit Allowed
Line 11 - Fill in the amount of income taxable to both Wisconsin and the other state. This should include
amounts entered on lines 1 and 6, but do not include the same amount twice.
Example: The income which is taxable to another state for which the tax-option (S) corporation paid the
other state an individual income tax on a composite return and an income tax on a corporate return is as
follows (assume the tax paid to the other state on the composite income tax return is entirely for
Wisconsin resident shareholders):
Type of Income Composite Return Corporate Return
Ordinary income $40,000 $20,000
Interest 5,000
The tax-option (S) corporation paid an individual income tax on a composite return to the other state on
$40,000 of ordinary income of which the full amount is also taxable to Wisconsin. The entity paid an
income tax on a corporate tax return on a portion of this income. The entity also paid an income tax on a
corporate return to the other state on $5,000 of interest income of which the full amount is also taxable
to Wisconsin. The interest was exempt from taxation to the other state at the individual level. The amount
to enter on line 11 is $45,000 ($40,000 of ordinary income plus $5,000 of interest income).
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