Instructions For 2009 Schedule 4i: Wisconsin Adjustments For Insurance Companies (Page 3 of 4) in pdf

Schedule 4I Instructions

to be added back to the corporation’s net business

loss, even if they otherwise qualify for the dividends

received deduction under sec. 71.26)(3)(j), Wis.

Part IV: Tax Adjustment

Stats. See the Schedule Y instructions for how to de-

termine if a dividend qualifies to be eliminated from

Since the tax liability of an insurance company is

combined unitary income under sec. 71.255(4)(f),

generally the lesser of 7.9% of its net income or 2%

Wis. Stats.

of its gross premiums, this is where you compute an

adjustment to the insurance company’s tax liability in

Dividend Income from Separate Entity Items. If a

cases where the 2% of gross premiums computation

dividend is not otherwise includable in combined uni-

applies.

tary income, for example, if it is excluded from com-

bined unitary income under the water’s edge rules,

■ Line 25. Wisconsin Net Income – For insurance

do not include it in the computation of line 19 of

companies that are combined group members, Wis-

Schedule 4I. You will account for it on line 22 instead.

consin net income is computed from the amounts on

the member’s Form 4M, as follows:

■ Line 20. Apportionment Percentage – If this isn’t

a combined return, enter the company’s apportion-

Share of combined unitary income (= line L1 + L2)

ment percentage from line 8 of Form 4. If this is a

+ Income from separate entity items (line M)

combined return, enter the company’s Wisconsin per-

Net capital loss adjustment (line N)

centage of combined unitary income from Part II, col-

Net business loss carryforward (line P)

umn c of Form 4A.

Wisconsin net income

CAUTION: Do not enter the entire combined

(The line references L1, L2, M, N, and P refer to lines

group’s Wisconsin apportionment percentage on

of Form 4M.)

line 20. Enter only the insurance company’s

Wisconsin percentage of combined unitary income.

■ Line 27a. Gross Premiums – The franchise tax

measured by net income attributable to all lines of

insurance in Wisconsin may not exceed 2% of the

■ Line 22. Dividends Received Deduction from

gross Wisconsin premiums as defined in sec. 76.62,

Separate Entity Items – Complete this line if any of

Wis. Stats. On line 27a, enter the amount of gross

the insurance company’s dividend income met the

premiums, other than life insurance premiums, re-

first two criteria in the list presented in the instructions

ceived for direct insurance less return premiums and

for line 19, but was not otherwise includable in com-

cancellations and returns from savings and gains on

bined unitary income. From this dividend income,

all insurance other than reinsurance by the insurer

subtract any foreign taxes on those dividends

during the preceding year in Wisconsin.

claimed as a deduction elsewhere on your return,

and multiply the resulting amount by the apportion-

Attach a schedule detailing the computation of Wis-

ment percentage from Part II of Form 4N. Enter the

consin gross nonlife premiums, including references

total on line 22 as a negative number.

to the applicable schedules, columns, and lines of

your annual statement.

■ Line 24. Net Business Loss Adjustment – If this

is a combined return, enter this amount on line O of

■ Line 30. Tax Adjustment – If this is a combined

the insurance company’s Form 4M.

return, the amount on Form 4, line 14b should equal

the sum of the amounts on Schedule 4I, line 30 for

each applicable insurance company in the combined

group.

Instructions For 2009 Schedule 4i: Wisconsin Adjustments For Insurance Companies Page 3

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