Instructions For 2014 Schedule Cu-1: Credit Union Adjustment To Income
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1
2Instructions for 2014 Schedule CU-1:
Credit Union Adjustment to Income
Purpose of Schedule CU-1
For combined filers: Adjust the amount you reported
on Form 6, Part II, line 1 to account for Wisconsin
The purpose of Schedule CU-1 is to allow credit
addition and subtraction modifications. Compute
unions acting as public depositories for state or local
these modifications on Form 6, Part II, lines 2 and 4,
government
funds
to
adjust
their
income
so
as appropriate, but do not enter an amount on Form
Wisconsin taxable income excludes net income
6, Part II, line 4l until you have completed Schedule
earned from non-public deposits.
CU-1. This is because you will include the amount
from line 9 of Schedule CU-1 (whether positive or
negative) as an “other” modification on Form 6, Part
A credit union that is required to file a Wisconsin
II, line 4l.
franchise or income tax return files Schedule CU-1
with Form 4 or 6.
Line-by-Line Instructions
Special Instructions for Combined Groups
These instructions are presented in the order the
lines appear on Schedule CU-1:
Combined groups should prepare Schedule CU-1
separately for each member of the group that is a
credit union and is otherwise required to file a Wis-
consin franchise or income tax return. Complete
Schedule CU-1 on a separate entity basis for each
Part I: Percentage of Income Earned from Public
applicable group member.
and Non-Public Deposits
■ Lines 1a through 1m. Deposits on Hand – Enter
Before You Complete Schedule CU-1
on line 1a the amount of deposits on hand on Janu-
ary 1, 2014, and on lines 1b through 1m the amount
The starting point for computing Wisconsin net in-
of deposits on hand at the end of each month in
come is federal taxable income from Form 1120.
2014. Enter public deposits in column A and total de-
Credit unions which aren’t required to file federal
posits in column B. Enter zero (0) in column A for
Form 1120 with the Internal Revenue Service deter-
each month in which no public deposits were held.
mine their starting point by either (1) completing a pro
forma Form 1120, or (2) using the net income (loss)
■ Line 1n. Totals – Enter on line 1n the totals of
from the NCUA Form 5300, 2014 Year end Call Re-
port. You must file either the pro forma Form 1120 or
lines 1a through 1m for both columns A and B.
the NCUA Form 5300, whichever you are using, with
■ Line 2. Monthly Average – Divide the amounts on
Form 4 or 6.
line 1n by 13 and enter the results on line 2 for both
If you are filing a non-combined Wisconsin return,
columns A and B.
enter on Form 4, line 1 the amount from either the
■ Line 3a. Percentage of Public Deposits – Divide
pro forma Form 1120 or the NCUA Form 5300, as
applicable. If the credit union is a member of a com-
the amount on line 2, column A, by the amount on
bined group, include this amount in the members’
line 2, column B, and multiply by 100. Fill all spaces
federal taxable incomes you report on Form 6.
to the right of the decimal point. Round to the nearest
ten-thousandth of a percent (for example, 12.3456%).
For non-combined filers: Adjust the amount you re-
■ Line 3b. Percentage of Non-Public Deposits –
ported on Form 4, line 1 to account for Wisconsin
addition and subtraction modifications. Compute
Subtract the percentage on line 3a from 100%. Fill all
these modifications on Schedules 4V and 4W, as
spaces to the right of the decimal point.
appropriate, but do not enter the amount from
Schedule 4W on Form 4, line 4 until you have com-
pleted Schedule CU-1. This is because you will in-
clude the amount from line 9 of Schedule CU-1
Part II: Adjustment for Income Earned
(whether positive or negative) as an “other” modifica-
from Non-Public Deposits
tion on Schedule 4W, line 13.
Expenses related to exempt income from non-public
deposits are nondeductible. The adjustment you
IC-080
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