2024 Wisconsin Schedule U Instructions 

 Purpose of Schedule U                                                                                                                   
Use Schedule U to see if you owe interest for underpaying your estimated tax and, if you do, to figure the amount of interest you 
owe. It may be used by individuals, partnerships, estates, and trusts (except trusts subject to the Wisconsin tax on unrelated 
business income must use Form U, Underpayment of Estimated Tax by Corporations). 

 Who Must Pay Underpayment Interest                                                                                                      
If you did not pay enough estimated tax by any due date, or if you did not have enough Wisconsin income tax withheld, you may 
be charged interest on the underpayment. This is true even if you have a refund when you file your tax return. Underpayment 
interest is figured separately for each due date. Therefore, you may owe underpayment interest for an earlier payment due date, 
even if you pay enough tax later to make up the underpayment. 
In general, you may owe underpayment interest for 2024 if you did not pay at least the smaller of 
• 90% of your current year (2024) tax liability, or 
• 100% of your prior year (2023) tax liability if you filed a 2023 return that covered a full 12 months. 
Note: The alternative to pay 100% of prior year tax liability does not apply to an estate or trust with taxable income of $20,000 or 
more. 

 Exception Codes                                                                                                                         
You will not owe underpayment interest if the total tax shown on your 2024 return minus the amount of tax you paid through 
withholding is less than $500. To determine whether you qualify for this exception, complete lines 1 through 6. 
If this exception does not apply to you, see below for other exceptions which may apply. 
Following are the exception codes to enter on your income tax return if they apply. If more than one exception code applies to 
you, enter the lowest applicable code number in the space. 
 Code                                                                  Code 
 02   Prior full-year resident 12-month tax return was zero (page 1)   07   Active duty stationed outside U.S. (page 2) 
 Code                                                                  Code 
 03   Estate or grantor trust-within 2 years of date of death (page 1) 08   Tax not withheld evenly throughout the year (page 3) 
 Code                                                                  Code 
 04   Farming or fishing (page 1)                                      09   Net operating loss (page 5) 
 
Code  Casualty, disaster, or other unusual circumstance (page 2)       Code Federally declared disaster or terroristic military 
 05                                                                    10   action (page 1) 
Code 
 06   Retired or disabled (page 2) 
 
Exceptions 
You will not have to pay underpayment interest if any one of the following applies: 
(1) You were a Wisconsin resident for the entire 2023 year, your tax liability for 2023 was zero, and your 2023 tax return was (or 
    would have been had you been required to file) for a full 12 months. If you (and your spouse if filing a joint return) qualify for 
    this exception, enter exception code “02” in the space on the underpayment interest line of your return.  
    Note: Do not use code "02" if you (or your spouse if filing a joint return) were a nonresident or part-year resident of 
    Wisconsin for 2023; you do not meet the qualifications for this exception. 
(2) The taxpayer is an estate or grantor trust funded on account of a decedent’s death and the tax return is for a tax year that 
    ends within two years after the date of death. Enter exception code “03” in the space on the underpayment interest line of 
    Form 2.       
(3) Your gross income from farming or fishing during 2023 or 2024 is at least two-thirds of your total gross income and you file 
    your 2024 Wisconsin return and pay the balance due on or before March 3, 2025. Enter exception code “04” in the space on 
    the underpayment interest line of your return. 
    Note: Total gross income is the joint total gross income of a married couple filing a joint return. 
(4) You qualify for an extension of time to file your 2024 federal return or make any of your federal estimated tax payments 
    because of a federally declared disaster or terroristic or military action. Enter exception code “10” in the space on the 
    underpayment interest line of your return. 
D-114 (R. 11-24)                                                                                         Wisconsin Department of Revenue 

 Waiver of Underpayment Interest                                                                                              
If you have an underpayment on line 20 for any payment due date, you may apply for a partial or total waiver of the interest for 
that underpayment if: 
• You underpaid because of a casualty, disaster, or other unusual circumstance and exception (4) on page 1 does not apply to 
  you (use exception code “05”). 
• In 2023 or 2024 you retired after age 62 or became disabled and your underpayment was due to reasonable cause and not 
  willful neglect (use exception code “06”). 
• You were on active duty with the United States Armed Forces and were stationed outside the continental United States (use 
  exception code “07”). 
To apply for a partial or total waiver, enter the appropriate exception code in the space on the underpayment interest line of your 
return. 
If applying for a partial waiver, also complete lines 1 through 8 and 16 through 29 of Schedule U. Include Schedule U and an 
explanation of how you qualify for the waiver and how much of the underpayment interest should be waived with your return. 
If applying for a total waiver, do not complete Schedule U. Instead, include an explanation with your return titled “Application for 
Waiver of Interest on Underpayment of Estimated Tax.” 

 Part I – Required Annual Payment                                                                                             
Complete lines 1 through 8 to figure your required annual payment. 
Note:  If you file an amended 2024 return, use the amounts shown on your amended return to figure your underpayment. 
  Line 2   
Fill in on line 2 the total of the refundable credits from your 2024 return (lines 30 through 35 of Form 1, lines 60 through 65 of Form 
1NPR, or lines 14 and 15 of Form 2). 
  Line 7   
Prior Year Tax    Figure your 2023 tax. Use the net tax from your 2023 return (line 21 of Form 1, line 52 of Form 1NPR, line 10 of 
Form 2, or line 1 of Form 3), less any refundable credits (from lines 29 through 34 of Form 1, lines 60 through 65 of Form 1NPR, 
or lines 14 and 15 of Form 2). 
If your 2023 return was adjusted either by the department or by the filing of an amended return, use the adjusted amounts when 
determining your prior year tax. 
CAUTION    Do not complete line 7 if any one of the following applies. Instead, fill in the amount from line 4 on line 8. 
• You did not file a 2023 Wisconsin income tax return 
• Your 2023 tax return was for less than 12 months (i.e., a short-year return), or 
• The taxpayer is an estate or trust and has 2024 taxable income of $20,000 or more. 
Filing Status Change   If you are filing a joint return for 2024, but you did not file a joint return for 2023, add the tax shown on your 
2023 return to the tax shown on your spouse’s 2023 return and fill in the total on line 7. 
If you filed a joint return for 2023 but you are not filing a joint return for 2024, your 2023 tax is your share of the tax on the joint 
return. To figure your share, first figure the tax both you and your spouse would have paid had you filed separate returns for 2023. 
Then multiply your joint tax liability by the following fraction: 
                                             Your separate tax liability 
                                             Both spouses’ separate tax liabilities 
  Line 8   
If the amount on line 5 is equal to or more than the amount on line 8, do not complete the rest of Schedule U. You do not owe 
under-payment interest. 

 Part II – Short Method                                                                                                       
You may use the short method if: 
• You made no Wisconsin estimated tax payments (or your only payments were withheld Wisconsin income tax), or 
• You made estimated tax payments in four equal amounts by the due dates. 
Note:  If any payment was made early, using the short method may cause you to pay more interest than the regular method. If the 
payment was only a few days early, the difference will generally be small. 
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Do not use the short method if: 
• You made any of your estimated tax payments late, or 
• You want to use the annualized income installment method (see Part IV), or 
• You treat withholding as paid when it was actually withheld, instead of in four equal amounts, or 
• You claim a waiver for any period (see “Waiver of Underpayment Interest” on page 2). 
If you can use the short method, complete lines 9 through 15 and do not complete the rest of Schedule U. Otherwise, go on to 
Part III. 

 Part III – Regular Method                                                                                                              
Complete lines 16 through 29 to compute underpayment interest using the regular method. 
  Line 16   
Required Installments   Divide the amount on line 8 by four (4) and fill in the result in each column. 
Exceptions 
• If you did not receive your income evenly throughout the year, you may be able to lower the amount of your required 
  installment for the due dates by using the annualized income installment method. See Part IV for further information. 
• If your gross income from farming or fishing for 2023 or 2024 is at least two-thirds of your total gross income, fill in the amount 
  from line 8 in the last column of line 16. Fill in 0 (zero) in the first three columns. Also, enter exception code “04” in the space 
  on the underpayment interest line of your return. Note:   A partnership cannot use exception code “04”. Under sec. 71.09(1) 
  (a), Wis. Stats., a farmer or fisher must be an individual, estate, or trust. 
  Line 17   
Estimated Tax Paid     Fill in the estimated tax that you (and your spouse if filing a joint return) paid for each installment period. Do 
not fill in on line 17 any payment made after January 15, 2025. Any payment made after January 15, 2025, and before April 15, 
2025, should be entered on line 22 as a late payment. 
Exception   If you file your 2024 income tax return and pay the balance due by January 31, 2025, that payment will be accepted 
as your January 15 installment payment. However, this exception only applies if you were not required to make any estimated 
payment for the September 15 or earlier due dates. This generally requires you to have computed your estimated payments using 
the annualized income method in Part IV. 

  Line 18   
Tax Withheld You are considered to have paid one-fourth of any withheld Wisconsin income tax on each payment due date 
unless you can show otherwise. Fill in one-fourth of any withheld Wisconsin income tax in each of the four columns. 
If your tax was not withheld evenly throughout the year, you may fill in the amounts actually withheld during each period. Also, 
enter exception code “08” in the space on the underpayment interest line of your return. 

  Line 20   
Underpayment If line 20 is zero in all four columns, do not complete the rest of Schedule U. You do not have an underpayment. 
If there is any amount in any column of line 20, complete the rest of Part III. 
  Lines 22 and 23   
Complete lines 22 and 23 only if you have an overpayment on line 21 for one or more installment periods. If you carry back more 
than one overpayment to a prior installment period, fill in separately on line 22 each carryback used. Overpayments should be 
carried back and/or carried forward in the following order: 
1. Any overpayment on line 21, column (a), should be carried forward to the next installment period with an underpayment and 
   entered on line 23. Any remaining excess should be carried forward to the next installment period with an underpayment and 
   entered on line 23, etc. 
2. Any overpayment on line 21, column (b), should be carried back to an underpayment in column (a) and entered on line 22. Any 
   remaining excess should be carried forward to the next installment period with an underpayment and entered on line 23. 
3. Any overpayment on line 21, column (c), should be carried back to underpayment(s) in column (b), then column (a) and entered 
   on line 22. Any remaining excess should be carried forward to an underpayment in column (d) and entered on line 23. 
4. Any overpayment on line 21, column (d), should be carried back to underpayment(s) in column (c), then column (b), then 
   column (a) and entered on line 22. 
Exception   If you made an estimated tax payment after January 15, 2025, but before April 15, 2025, fill in the amount of that 
payment on line 22 in column (d). However, do not fill in more than the amount on line 20. Any excess may be carried back to the 
next prior period, etc. 
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CAUTION    If you have an overpayment in more than one column, see “Example of Carryforward and Carryback” for clarification 
of how to apply the overpayments to any underpayments. 
Example of Carryforward 
Column (a), line 21, has an overpayment of $1,000. Columns (b), (c), and (d), line 20, each have underpayments of $400. First, 
carry forward $400 of the overpayment from column (a) to column (b) by entering $400 on line 23. Second, carry forward $400 of 
the overpayment from column (a) to column (c) by entering $400 on line 23. Lastly, carry forward the remaining overpayment of 
$200 from column (a) to column (d) by entering $200 on line 23. 

                 Column (a)           Column (b)                Column (c) Column (d) 
 Line 20                                    $400                     $400  $400 
 Line 21         $1,000                                                     
 Line 22                                                                    
 Line 23                                    $400                     $400  $200 

Example of Carryback 
Columns (a), (b), and (c), line 20, each have underpayments of $500. Column (d), line 21, has an overpayment of $1,200. First, 
carry back $500 from column (d) to column (c) by entering $500 on line 22. Second, carry back $500 from column (d) to column 
(b) by entering $500 on line 22. Lastly, carry back the remaining overpayment of $200 from column (d) to column (a) by entering 
$200 on line 22. 

                 Column (a)           Column(b)                 Column (c) Column (d) 
 Line 20         $500                       $500                     $500   
 Line 21                                                                   $1,200 
 Line 22         $200                       $500                     $500 
 Line 23 

Example of Carryforward and Carryback 
Both columns (a) and (c), line 21, have an overpayment of $500. Both columns (b) and (d), line 20, have an underpayment of 
$600. First, carry forward the overpayment of $500 from column (a) to column (b) by entering $500 on line 23. Second, carry back 
$100 from column (c) to column (b) by entering $100 on line 22. Lastly, carry forward the remaining overpayment of $400 from 
column (c) to column (d) by entering $400 on line 23. 

                 Column (a)           Column (b)                Column (c) Column (d) 
 Line 20                                    $600                           $600 
 Line 21         $500                                                $500   
 Line 22                                    $100                            
 Line 23                                    $500                           $400 

  Lines 25 through 29   
Complete lines 25 through 29 to determine the amount of interest due on the underpayment. Only complete lines 25 and 27 when 
an overpayment or late payment is carried back on line 22. If you apply more than one payment to a given installment, include a 
statement showing a separate computation for each payment. 

 Part IV – Annualized Income Installment Method Worksheet                                                                
If your income varied during the year, you may be able to lower or eliminate the underpayment interest for one or more installments 
by using the annualized income installment method. Use the worksheet in Part IV to figure the amount to fill in on line 16 of 
Schedule U. Enter exception code “08” in the space on the underpayment interest line of your return. 
Exception   If you have a net operating loss (NOL) carryforward or carryback on line 33, do not enter exception code “08.” Instead, 
enter exception code “09.” 

  Line 30   
Income   Estates and trusts and full-year resident individuals – enter your Wisconsin income for each period.   Nonresident and 
part-year resident individuals – fill in the larger of Wisconsin or federal income for each period. Partnerships – enter the entity’s 
Wisconsin net income for each period. Note: For any period in which Wisconsin income is zero or less, fill in 0 (zero). 

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  Line 33   
Standard Deduction Full-year resident individuals – use the amount on line 32 to determine your standard deduction from the 
Standard Deduction Table in the 2024        Form 1 instructions. Nonresidents and part-year resident individuals – use the annualized 
federal income to determine the standard deduction from the table in the 2024     Form 1NPR instructions.    Partnerships, estates, 
and trusts – fill in 0 (zero) on this line. 
Net Operating Loss If you have an NOL carryforward or carryback, determine the amount allowable for each period. Enter 
exception code “09” in the space on the underpayment interest line of your return. 
Fill in on line 33 the total standard deduction and NOL carryforward or carryback for each period. 
  Line 35   
Deduction for Exemptions    Individuals – Fill in the deduction for exemptions from line 10c of your 2024 Form 1 or line 36c of 
your 2024 Form 1NPR. Partnerships, estates, and trusts – fill in 0 (zero) on this line. 
  Line 37   
Tax  Use the tax table in the instructions for your 2024 Wisconsin tax form to compute the amount of tax to fill in on line 37. 
Partnerships must multiply the amount on line 36 by 7.9%. 
Nonresident and part-year resident individuals –   prorate the tax computed using the instructions by the ratio of your annualized 
Wisconsin income to your annualized federal adjusted gross income. The ratio should not be less than 0 (zero) or greater than 
1.0. 

  Line 38   
Nonrefundable Credits Individuals – fill in the total credits from line 21 of your 2024 Form 1 or lines 44 and 51 of your 2024 Form 
1NPR in all four columns. Estates and trusts – fill in the amount of credit from line 9 of the 2024 Form 2 in all four columns. 
Partnerships – fill in the amount of credit from line 20 of the 2024 Schedule 3-ET in all four columns. 

  Line 40   
Refundable Credits Individuals – fill in the total credits from lines 30 through 35 of your 2024 Form 1 or lines 60 through 65 of 
your 2024 Form 1NPR in all four columns. Estates and trusts       –fill in the total credits from lines 14 and 15 of your 2024 Form 2 in 
all four columns. Partnerships – fill in the amount of the credit(s) included in line 8 of your 2024 Form 3. 
  Line 44   
Add the amounts from line 50 in all preceding columns and enter this amount on line 44. Example:        Line 50 shows $500 in the 
first column and $800 in the second column. The amount to enter on line 44, column 3, is $1,300 ($500 + $800). 
 
                                                   Applicable Laws and Rules 
 This document provides statements or interpretations of the following laws and regulations enacted as of November 15, 2024: 
 sec. 7508A, IRC, and ch. 71, Wis. Stats. 

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