2/7/2019
Issue 2538 is now resolved. Current functionality where 1099-R’s marked as IRA/SEP/SIMPLE will still be automatically subtracted from the WI return, when applicable. If a 1099-R is from a Pension or Annuity, the qualifying portion will be entered inside of the WI return. There is a new “Retirement Income Exclusion Worksheet” menu to enter the qualifying portion(s) of Pension and/or Annuity income. Text within this menu, as shown below, indicates IRA distributions have already been carried over to assist in avoiding double-entry by the preparer. Also, a state prompt was added to the WI program (shown below) that will indicate to the preparer pension income has been found on the Federal return. This prompt only shows when first creating the WI return and only when pension income is reported on the Federal return.
2/6/2019
Issue 2538 was not included in this morning’s deployment. Once deployed, there will be a new “Retirement Income Exclusion Worksheet” menu as well as a prompt that users will see when first creating a WI return to complete this menu if pension income is found on the Federal return.
2/5/2019
Issue 2538 should be pushed live in the next deployment which should be this week. Possibly tomorrow (Wednesday) at the earliest. Once live, this post will be updated to detail what was included in the update.
2/1/2019
We have opened Issue #2538 to correct a previous WI update where “Code 26” for the WI retirement subtraction was removed as a drop-down selection within the Wisconsin program. Currently, “Code 26” is automatically calculated based on Federal return entries when a 1099-R is present and marked as an IRA/SEP/SIMPLE but 1099-R’s that are from Pensions or Annuities are not being included in the automatic calculation. Once Issue 2538 has been resolved, additional details will be provided in this post as to what was included in the update.
At this time, we would advise holding WI returns with pension/annuity income that would qualify for this subtraction until this post has been updated. We anticipate this being resolved next week. However, any Federal returns can still be transmitted as usual. Impacted WI returns can be transmitted as a “State Only” once resolved.