2023 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 2023 if you did not pay at least the smaller of 
 • 90% of your current year (2023) tax liability, or 
 • 100% of your prior year (2022) tax liability if you filed a 2022 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 2023 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. 
                                                                          
       Prior full-year resident 12-month tax return was zero (page 1)     Active duty stationed outside U.S. (page 2) 
                                                                          
       Estate or grantor trust-within 2 years of date of death (page 1)   Tax not withheld evenly throughout the year (page 3)  
 
       Farming or fishing (page 1)                                        Net operating loss (page 5) 
 
       Casualty, disaster, or other unusual circumstance (page 2)         Federally-declared disaster or terroristic military 
      
                                                                          action (page 1) 
       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 2022 year, your tax liability for 2022 was zero, and your 2022 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. 
 
 (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 2022 or 2023 is at least two-thirds of your total gross income and you file 
      your 2023 Wisconsin return and pay the balance due on or before March 1, 2024. 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 2023 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. 12-23) 

 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 2022 or 2023 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 2023 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 2023 return (lines 29 through 34 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 2022 tax. Use the net tax from your 2022 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 2022 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. 
 • Your 2022 tax was for less than 12 months, or 
 • The taxpayer is an estate or trust and has 2023 taxable income of $20,000 or more. 
 
 Filing Status Change   If you are filing a joint return for 2023, but you did not file a joint return for 2022, add the tax shown on 
 your 2022 return to the tax shown on your spouse’s 2022 return and fill in the total on line 7. 
 
 If you filed a joint return for 2022 but you are not filing a joint return for 2023, your 2022 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 2022. 
 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. 

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 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. 
 
 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 2022 or 2023 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 16, 2024. Any payment made after January 16, 2024, and before April 15, 
 2024, should be entered on line 22 as a late payment. 
 
 Exception  If you file your 2023 income tax return and pay the balance due by January 31, 2024, that payment will be accepted 
 as your January 16 installment payment. 
 
   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. 
                                  
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 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 16, 2024, but before April 15, 2024, fill in the amount of that 
 payment on line 22 in column (c). However, do not fill in more than the amount on line 20. Any excess may be carried back to the 
 next prior period, etc. 
 
 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, 
 carryforward $400 of the overpayment from column (a) to column (b) by entering $400 on line 23. Second, carryforward $400 of 
 the overpayment from column (a) to column (c) by entering $400 on line 23. Lastly, carryforward 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, 
 carryback $500 from column (d) to column (c) by entering $500 on line 22. Second, carryback $500 from column (d) to column (b) 
 by entering $500 on line 22. Lastly, carryback 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, carryforward the overpayment of $500 from column (a) to column (b) by entering $500 on line 23. Second, carryback 
 $100 from column (c) to column (b) by entering $100 on line 22. Lastly, carryforward 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. 
                                
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 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    Nonresident and part-year resident individuals, fill in the larger of Wisconsin or federal income for each period. 
 Partnerships should 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). 
 
   Line 33  
 Standard Deduction Use the amount on line 32 to determine your standard deduction from the Standard Deduction Table in the 
 2023 Form 1 instructions.  Nonresidents and part-year residents must use their annualized federal  income to  determine the 
 standard deduction from the table in the 2023 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        Fill in the deduction for exemptions from line 10c of your 2023 Form 1 or line 36c of your 2023 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 2023 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%. 
 
   Line 38  
 Nonrefundable Credits  Fill in the total credits from line 20 of your 2023 Form 1 or lines 42 and 51 of your 2023 Form 1NPR in 
 all four columns. Estates and trusts should fill in the amount of credit from line 9 of the 2023 Form 2 in all four columns. Partnerships 
 should fill in the amount of credit from line 20 of the 2023 Schedule 3-ET in all four columns. 
 
   Line 39  
 Proration  Nonresident and part-year resident individuals, prorate the amounts to be filled in by the ratio of your annualized 
 Wisconsin income to your annualized federal adjusted gross income. 
 
   Line 40  
 Refundable Credits Fill in the total credits from lines 29 through 34 of your 2023 Form 1 or lines 60 through 65 of your 2023 
 Form 1NPR in all four columns. Estates and trusts should fill in the total credits from lines 14 and 15 of your 2023 Form 2 in all 
 four columns. Partnerships should fill in the amount of the credit(s) included in line 8 of your 2023 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 December 4, 2023: sec. 
 7508A, IRC, and ch. 71, Wis. Stats. 

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