Wisconsin Subtraction Modification For Dividends Instructions Sheet 2014 printable pdf download

Instructions for 2014 Schedule 4Y:

Wisconsin Subtraction Modification for Dividends

Purpose of Schedule 4Y

ration during the entire taxable year. You do not need

to report each dividend separately. Instructions for

Corporations complete Schedule 4Y to report the

each field of lines 1a through 1f follow:

amount of dividends that may be subtracted from

federal taxable income under the Wisconsin divi-

Name of Payer Corporation. Enter the name of the

dends received deduction.

corporation that paid the dividends eligible for the

subtraction.

NOTE: Do not use Schedule 4Y to report dividends

Name of Payee Corporation. Enter the name of the

that are nontaxable for reasons other than the

corporation that received the dividends eligible for the

Wisconsin dividends received deduction. See the

subtraction.

instructions for Schedule 4W, line 6 for reporting

those dividends.

Date Acquired by Payee. Enter the date on which

the payee obtained the level of voting stock owner-

Below is an explanation of each type of dividend re-

ship indicated in the Payee’s Ownership of Payer

portable on Schedule 4Y, followed by line-by-line in-

field described below.

structions.

Payee’s Ownership of Payer. Check the appropri-

ate line to indicate the payee’s level of ownership of

the payer’s stock. The percentages shown represent

the total ownership of the combined voting power of

Wisconsin Dividends Received Deduction

the payer’s stock.

Under sec. 71.26(3)(j), Wis. Stats., a dividend is de-

ductible for Wisconsin purposes if it meets the follow-

CAUTION: The corporation cannot claim a subtrac-

ing requirements:

tion for dividends unless it owned more than 70% of

the combined voting power of the payer’s stock for

•

It is paid on common stock, and

the entire taxable year.

•

The corporation receiving the dividend owned at

least 70% of the total combined voting stock of

the payer corporation for the entire taxable year.

Dividends Received. Enter the dividends received

by the payee from the payer to the extent they qualify

For purposes of Schedule 4Y, the Wisconsin divi-

for either the dividends received deduction.

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

Stats., is called the “70% ownership” dividend deduc-

CAUTION: If the payee owned more than 50%, but

tion.

less than or equal to 70%, of the combined voting

power of the payer’s stock, you must determine how

much of the dividends qualify to be eliminated from

income. You may only report the qualifying amount

Line-by-Line Instructions

on lines 1a through 1f.

First, group the total dividends received by the corpo-

ration into amounts paid by each payer.

■ Line 1h. Additional Schedules 4Y – If the corpo-

ration has more qualifying dividends than can be re-

From the total amounts paid by each payer, identify

ported on lines 1a to 1f, you must use lines 1a to 1f of

the dividends that qualify for the “70% ownership”

an additional Schedule 4Y (or additional Schedules

dividend deduction.

4Y) to report the remaining qualifying dividends.

Complete lines 1h through 4 only for the first Sched-

■ Lines 1a through 1f. Qualifying Dividends – On

ule 4Y.

lines 1a to 1f, enter the aggregate totals of qualifying

dividends based on the groupings described above.

■ Line 3. Foreign Taxes – On line 3, enter taxes

Each of these lines represents the total dividends

paid to a foreign nation on dividends listed on lines

paid from one payer corporation to one payee corpo-

1a to 1f (including dividends listed on lines 1a to 1f of

IC-125

Wisconsin Subtraction Modification For Dividends Instructions Sheet 2014

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