Instructions For 2009 Schedule 4i: Wisconsin Adjustments For Insurance Companies

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Instructions for 2009 Schedule 4I:
Wisconsin Adjustments for Insurance Companies
Purpose of Schedule 4I
When a corporation computes its Wisconsin fran-
Part II: Nontaxable Income from
chise or income tax liability, certain aspects of its tax
Life Insurance Operations
computation are different if the corporation is an in-
surance company. Subchapter VII of chapter 71 of
This is where you compute the nontaxable income
the Wisconsin Statutes provides for these differ-
from life insurance operations. This amount is carried
ences.
forward to Schedule W, Wisconsin Subtractions from
Federal Income.
Whether or not a corporation is an insurance com-
pany, it uses Form 4 to compute its Wisconsin fran-
■ Line 5. Federal Taxable Income – If this isn’t a
chise or income tax liability. The purpose of Sched-
combined return, enter the amount from Form 4,
ule 4I is to account for adjustments an insurance
line 1. If this is a combined return, enter the amount
company must make so the amounts on Form 4 re-
included in Form 4, line 1 that is attributable to the
flect the corporation’s status as an insurance com-
insurance company.
pany.
However, if this is a combined return and the insur-
Line-by-Line Instructions
ance company has a net capital gain reportable on
Form 4N, Wisconsin Nonapportionable and Sepa-
These instructions are presented in the order the
rately Apportionable Income, add that net capital gain
lines appear on Schedule 4I:
to the amount from Form 4, line 1 and enter the total
on line 5 of Schedule 4I.
■ Line 6. Total Addition Modifications – Enter the
company’s total Wisconsin addition modifications. If
Part I: Additions Specific to Insurance Companies
this isn’t a combined return, this is the amount from
Schedule V, line 13. If this is a combined return, enter
This is where you compute Wisconsin addition
the portion of the amount on Schedule V, line 13 that
modifications that are unique to insurance companies
is attributable to the insurance company.
so you can include them on Schedule V, Wisconsin
Additions to Federal Income.
■ Line 8. Subtraction Modifications – If this isn’t a
combined return, add the amounts on Schedule W,
■ Line 1. Loss Carryforward – Enter the insurance
lines 1 through 13 and enter the total. If this is a
company’s loss carryforward, including any capital
combined return, add the portion of the amounts on
loss carryforward previously deducted for Wisconsin,
Schedule W, lines 1 through 13 that is attributable to
that was deducted in computing the federal taxable
the insurance company and enter the total.
income you reported on Form 4, line 1.
■ Line 2. Dividend Income – Enter the insurance
NOTE: To complete lines 10a and 10b, refer to the
company’s dividend income received during the tax-
Annual
Statement
adopted
by
the
National
able year to the extent the dividends were deducted
Association of Insurance Commissioners for the
from, or not included in, the federal taxable income
year 2009, as filed with the Commissioner of
you reported on Form 4, line 1.
Insurance of the State of Wisconsin. For life and
accident and health insurance companies, refer to
■ Line 3. Deduction for Discounting Unpaid
the Summary of Operations, Analysis of Operations
Losses – Enter any deduction under section 847 of
by Lines of Business.
the Internal Revenue Code that was claimed in com-
puting the federal taxable income you reported for the
insurance company on Form 4, line 1.
■ Line 10a. Net Gain From Operations, Other than
Life Insurance – Include income from the following
■ Line 4. Total – If this is a combined return, include
sources:
the amount from line 4 in the amount on line 11 of the
combined group’s Schedule V.
IC-120

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