Wisconsin Subtraction Modification For Dividends Instructions Sheet 2015 printable pdf download

Instructions for 2015 Schedule 4Y:

Wisconsin Subtraction Modification for Dividends

Purpose of Schedule 4Y

during the entire taxable year. You do not need to re-

port each dividend separately. Instructions for each

Corporations complete Schedule 4Y to report the

field of lines 1a through 1f follow:

amount of dividends that may be subtracted from fed-

eral taxable income under the Wisconsin dividends re-

Name of Payer Corporation. Enter the name of the

ceived deduction.

corporation that paid the dividends eligible for the sub-

traction.

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 ownership in-

Below is an explanation of each type of dividend re-

dicated in the Payee’s Ownership of Payer field de-

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

scribed below.

structions.

Payee’s Ownership of Payer. Check the appropriate

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 the

Wisconsin Dividends Received Deduction

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 the



It is paid on common stock, and

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

For purposes of Schedule 4Y, the Wisconsin dividends

the dividends received deduction.

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

is called the “70% ownership” dividend deduction.

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

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

Line-by-Line Instructions

income. You may only report the qualifying amount

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 corpora-

From the total amounts paid by each payer, identify

tion has more qualifying dividends than can be re-

the dividends that qualify for the “70% ownership” div-

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

idend deduction.

an additional Schedule 4Y (or additional Schedules

4Y) to report the remaining qualifying dividends. Com-

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

plete lines 1h through 4 only for the first Schedule 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 paid

Each of these lines represents the total dividends paid

to a foreign nation on dividends listed on lines 1a to 1f

from one payer corporation to one payee corporation

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

tional Schedules 4Y) if you are claiming those foreign

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Wisconsin Subtraction Modification For Dividends Instructions Sheet 2015

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