Instructions for 2023 Schedule 4Y: 
                  Wisconsin Subtraction Modification for Dividends 

Purpose of Schedule 4Y 

Corporations complete Schedule 4Y to report the amount of dividends that may be subtracted from federal taxable 
income under the Wisconsin dividends received deduction.  

 NOTE: Do not use Schedule 4Y to report dividends that are nontaxable for reasons other than the Wisconsin 
 dividends received deduction. See the instructions for Schedule 4W, line 7 for reporting those dividends. 
  
Below is an explanation of each type of dividend reportable on Schedule 4Y, followed by line-by-line instructions. 

Wisconsin Dividends Received Deduction 

Under sec. 71.26(3)(j), Wis. Stats., a dividend is deductible for Wisconsin purposes if it meets the following require-
ments: 
• It is paid on common stock, and 
• The corporation receiving the dividend owned at least 70% of the total combined voting stock of the payer cor-
  poration for the entire taxable year. 

For purposes of Schedule 4Y, the Wisconsin dividends received deduction under sec. 71.26(3)(j), Wis. Stats., is 
called the “70% ownership” dividend deduction.  

Line-by-Line Instructions 

First, group the total dividends received by the corporation into amounts paid by each payer.  

From the total amounts paid by each payer, identify the dividends that qualify for the “70% ownership” dividend 
deduction.  
 
■ Lines 1a through 1f. Qualifying Dividends – On lines 1a to 1f, enter the aggregate totals of qualifying dividends 
based on the groupings described above. Each of these lines represents the total dividends paid from one payer 
corporation to one payee corporation during the entire taxable year. You do not need to report each dividend sepa-
rately. Instructions for each field of lines 1a through 1f follow: 

Name of Payer Corporation. Enter the name of the corporation that paid the dividends eligible for the subtraction.   

Name of Payee Corporation. Enter the name of the corporation that received the dividends eligible for the subtrac-
tion. 

Date Acquired by Payee. Enter the date on which the payee obtained the level of voting stock ownership indicated 
in the Payee’s Ownership of Payer field described below.  

 CAUTION:         The corporation cannot claim a subtraction for dividends unless it owned at least 70% of the combined 
 voting power of the payer’s stock for the entire taxable year. 
                                                                                                                         
Dividends Received. Enter the dividends received by the payee from the payer to the extent they qualify for the 
dividends received deduction.   

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                                              2023 Schedule 4Y Instructions 
 
■ Line 1h. Additional Schedules 4Y – If the corporation has more qualifying dividends than can be reported on lines 
1a to 1f, you must use lines 1a to 1f of an additional Schedule 4Y (or additional Schedules 4Y) to report the remaining 
qualifying dividends. Complete lines 1h through 4 only for the first Schedule 4Y.  

■ Line 3. Foreign Taxes – On line 3,enter taxes paid to a foreign nation on dividends listed on lines 1a to 1f (including 
dividends listed on lines 1a to 1f of additional Schedules 4Y) if you are claiming those foreign taxes as a deduction 
elsewhere on your return. You may be including them as a deduction in the federal taxable income you report on line 
1 of Form 4 or you may be claiming them as a subtraction on Schedule 4W, line 8. 
 
Additional Information and Assistance

Web Resources  

The Department of Revenue’s web page, available at     revenue.wi.gov, has a number of resources to provide addi-
tional information and assistance, including: 

•  Related forms and their instructions  
•  Common questions  
•  Publications on specific tax topics 
•  The Wisconsin Tax Bulletin  
•  A home page specifically for combined reporting topics 
•  Links to the Wisconsin Statutes and Administrative Code 

Contact Information  
If you cannot find the answer to your question in the resources available on the Department of Revenue’s web page, 
contact the Department using any of the following methods: 
•  E-mail your question to: DORFranchise@wisconsin.gov 
•  Call (608) 266-2772  
   (Telephone help is also available using TTY equipment. Call the Wisconsin Telecommunications Relay System 
   at 711 or, if no answer, (800) 947-3529. These numbers are to be used only when calling with TTY equipment.) 
•  Send a fax to (608) 267-0834 
•  Write to the Audit Bureau, Wisconsin Department of Revenue, Mail Stop 3-107, PO Box 8906, Madison, WI  
   53708-8906 
 
                                          Applicable Laws and Rules 
   This document provides statements or  interpretations of the following laws and regulations  in effect as  of 
   December 1, 2023:  Section 71.26(3)(j), Wis. Stats. 

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