Instructions For 2015 Schedule Cu-1: Credit Union Adjustment To Income
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1
2Instructions for 2015 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 ad-
The purpose of Schedule CU-1 is to allow credit
dition and subtraction modifications. Compute these
unions acting as public depositories for state or local
modifications on Form 6, Part II, lines 2 and 4, as ap-
government funds to adjust their income so Wisconsin
propriate, but do not enter an amount on Form 6, Part
taxable income excludes net income earned from non-
II, line 4m until you have completed Schedule CU-1.
This is because you will include the amount from line
public deposits.
9 of Schedule CU-1 (whether positive or negative) as
an “other” modification on Form 6, Part II, line 4m.
A credit union that is required to file a Wisconsin fran-
chise or income tax return files Schedule CU-1 with
Form 4 or 6.
Line-by-Line Instructions
These instructions are presented in the order the lines
Special Instructions for Combined Groups
appear on Schedule CU-1:
Combined groups should prepare Schedule CU-1 sep-
arately for each member of the group that is a credit
union and is otherwise required to file a Wisconsin
franchise or income tax return. Complete Schedule
Part I: Percentage of Income Earned from Public
CU-1 on a separate entity basis for each applicable
and Non-Public Deposits
group member.
■ Lines 1a through 1m. Deposits on Hand – Enter
Before You Complete Schedule CU-1
on line 1a the amount of deposits on hand on January
1, 2015, and on lines 1b through 1m the amount of
deposits on hand at the end of each month in 2015.
The starting point for computing Wisconsin net income
Enter public deposits in column A and total deposits in
is federal taxable income from Form 1120. Credit un-
ions which aren’t required to file federal Form 1120
column B. Enter zero (0) in column A for each month
in which no public deposits were held.
with the Internal Revenue Service determine their
starting point by either (1) completing a pro forma
■ Line 1n. Totals – Enter on line 1n the totals of lines
Form 1120, or (2) using the net income (loss) from the
NCUA Form 5300, 2015 Year end Call Report. You
1a through 1m for both columns A and B.
must file either the pro forma Form 1120 or the NCUA
■ Line 2. Monthly Average – Divide the amounts on
Form 5300, whichever you are using, with Form 4 or
6.
line 1n by 13 and enter the results on line 2 for both
columns A and B.
If you are filing a non-combined Wisconsin return, en-
■ Line 3a. Percentage of Public Deposits – Divide
ter on Form 4, line 1 the amount from either the pro
forma Form 1120 or the NCUA Form 5300, as appli-
the amount on line 2, column A, by the amount on line
cable. If the credit union is a member of a combined
2, column B, and multiply by 100. Fill all spaces to the
group, include this amount in the members’ federal
right of the decimal point. Round to the nearest ten-
taxable incomes you report on Form 6.
thousandth of a percent (for example, 12.3456%).
■ Line 3b. Percentage of Non-Public Deposits –
For non-combined filers: Adjust the amount you re-
ported on Form 4, line 1 to account for Wisconsin ad-
Subtract the percentage on line 3a from 100%. Fill all
dition and subtraction modifications. Compute these
spaces to the right of the decimal point.
modifications on Schedules 4V and 4W, as appropri-
ate, but do not enter the amount from Schedule 4W on
Form 4, line 4 until you have completed Schedule CU-
1. This is because you will include the amount from
Part II: Adjustment for Income Earned
line 9 of Schedule CU-1 (whether positive or negative)
from Non-Public Deposits
as an “other” modification on Schedule 4W, line 13.
Expenses related to exempt income from non-public
deposits are nondeductible. The adjustment you com-
pute in Part II must be net of all expenses directly and
IC-180
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