Question

repost - Federal capital losses showing on nonresident state return

Forum|Forum|5 years ago
April 7, 2021
1 reply
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EDIT - I need help to delete the state return as there was no way to correct the errors and the adjustments I tried to do to make it work were incorrect and I could not delete the incorrectly added (by TT) data.

it appears there are several issues TT has done incorrectly with this return as I went to the WI DOR site and researched each line item input myself.

I need to delete the return and enter manually. HOWEVER, since I already paid to review where I then found the TT system errors, it says I cannot delete it? So I tried to just delete the forms and it said deleted successfully - but they are still in there.

Between this and the broker statement import issue everyone has had this year, I will have to find another service going forward as I don't feel I can trust this system to be correct and I have to basically do it all myself anyway.

On my prior follow-up question, it shows resolved so I am reposting this.

Where I can confirm the following:

- on my 1099B broker statement, TT was only showing the place to click to exclude transactions from state returns transactions with adjustments included on form 8949. So I manually went in to the WI return and entered as an adjustment the total ST losses (without adj's) from Federal Schedule D, line 1a.

This finally gets my WI investment income to show up on the summary.

I entered it to "Adjustments to other Forms" federal Forms 4684, 6781, 8824, or 6252. I do not have these forms. My data is from Schedule D.

This shows up on Schedule WD line 4. This does not seem correct as it shows as a 'gain', and references other forms that are not generated. But I don't see an option to eliminate this federal loss from the state return.

If I enter it instead to Basis Difference, it adds it to line 6 and need schedule T, which the system did not generate.

Note: In prior years, all of my broker input was on form 8949. However with the changes this year TT made, it only shows those with adjustments. If they were all on line 1B, I'd be able to simply click to exclude them.

The WI DOR website says Do Not include the federal for nonresidents. There is no way to delete this.

What is the correct place to remove Federal Capital Loss on nonresident state return since I cannot simply delete/exclude it?

I have a loss on Schedule K-1. There is not an option to click to exclude from WI income.

I reversed it in Misc - WI non-taxable income.

This makes the return show that I have income/loss on line 11, but subtracts it back out on line 29 and finally shows tax due!
Is this the correct way to remove the non-taxable for WI income?

The state gain is showing properly as is the tax due. I'm just not clear how/where to exclude the federal items, more so on the capital gains/loss since WI specifically says they should not show but this system does not allow me to delete it.

Thanks!

E

ErnieS0

Wisconsin nonresidents are not taxed on capital gains. Capital gains are taxed by the resident state.

To exclude capital gain from your Wisconsin nonresident return:

Go to the Wisconsin section of TurboTax
Keep going until you reach Here's the income that Wisconsin handles differently
Edit Wisconsin Capital Gains and Losses
Say YES to Adjustments for Capital Gains and Losses?
Continue to Long-Term Capital Gains and Losses Summary then Edit.
Check the box Don't report on my Wisconsin return.

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J

JMS23Author

Thank you for the reply!

I do owe nonresident WI gain on a WI property sale.

The problem is that Turbo Tax is bringing over the federal information incorrectly of gains/loss from line 1a Schedule D and I cannot remove it. Only the form 8949 amounts came through where I can check that box to exclude, which I did. That amount/line item from Schedule D does not show up in that section at all.

Due to the change in the import of broker statements this year that TT did, only the transactions with adjustments are on form 8949, no option to include all. This is correct, you do not have to itemize all on 8949, but does not flow through correctly on WI state return to have the option (the box) to exclude.

It is also bringing in Schedule K-1 income.

I can plug the federal cap gains to the sections I mentioned to zero it out, but not in any correct line that I could see. It should not show up at all per the state.

I could only see the errors by prepaying and reviewing, but cannot delete the return since I paid.

I've was on the phone with tech support, they could not give me an answer to unlock and allow to delete and manually reenter state info. First suggestion was to mail in the return. Which since the return is incorrect in TT I'd have to manually prepare from WI website forms. So what am I actually paying for? Sorry, pretty frustrated with TT this year!

They tried to undo the payment to see if it would allow deleting the return so I could reenter but that did not work.

The last suggestion is to call their tax advisor group to see if they may have a work around. I have not had a chance yet this evening. If they cannot provide a workaround, call them back...................

Does anyone have any ideas on how I can delete the Federal cap gains/loss from schedule WD, and K-1 income?

Thanks!!