Instructions For 2015 Schedule 4i: Wisconsin Adjustments For Insurance Companies
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3Instructions for 2015 Schedule 4I:
Wisconsin Adjustments for Insurance Companies
Purpose of Schedule 4I
Part II: Nontaxable Income from
Life Insurance Operations
When a corporation computes its Wisconsin franchise
or income tax liability, certain aspects of its tax com-
This is where you compute the nontaxable income
putation are different if the corporation is an insurance
from life insurance operations. This amount is carried
company. Subchapter VII of chapter 71 of the Wiscon-
forward to Schedule 4W, Wisconsin Subtractions from
sin Statutes provides for these differences.
Federal Income.
■ Line 5. Federal Taxable Income – Enter the
Whether or not a corporation is an insurance com-
pany, it uses Form 4 to compute its Wisconsin fran-
amount from Form 4, line 1.
chise or income tax liability if it is not a member of a
combined group. Combined group members should
■ Line 6. Total Addition Modifications – Enter the
be included on Form 6. The purpose of Schedule 4I is
company’s total Wisconsin addition modifications.
to account for adjustments an insurance company
This is the amount from Schedule 4V, line 11.
must make so the amounts on Form 4 reflect the cor-
poration’s status as an insurance company.
■ Line 8. Subtraction Modifications – Add the
amounts on Schedule 4W, lines 1 through 13i and en-
ter the total.
Line-by-Line Instructions
These instructions are presented in the order the lines
NOTE: To complete lines 10a and 10b, refer to the
appear on Schedule 4I:
Annual
Statement
adopted
by
the
National
Association of Insurance Commissioners for the year
2015, as filed with the Commissioner of Insurance of
the State of Wisconsin. For life and accident and
Part I: Additions Specific to Insurance Companies
health insurance companies, refer to the Summary
of Operations, Analysis of Operations by Lines of
Business.
This is where you compute Wisconsin addition
modifications that are unique to insurance companies
so you can include them on Schedule 4V, Wisconsin
■ Line 10a. Net Gain From Operations, Other than
Additions to Federal Income.
Life Insurance – Include income from the following
■ Line 1. Loss Carryforward – Enter the insurance
sources:
company’s loss carryforward, including any capital
Net income, after dividends to policyholders and
loss carryforward previously deducted for Wisconsin,
before federal and foreign income taxes, from
that was deducted in computing the federal taxable in-
property and casualty insurance.
come you reported on Form 4, line 1.
Net gain from operations, after dividends to
■ Line 2. Dividend Income – Enter the insurance
policyholders and before federal income taxes,
company’s dividend income received during the taxa-
from accident and health insurance.
ble year to the extent the dividends were deducted
Net
realized
capital
gains
or
losses
on
from, or not included in, the federal taxable income you
investments from accident and health insurance
reported on Form 4, line 1.
operations.
■ Line 3. Deduction for Discounting Unpaid
Losses – Enter any deduction under section 847 of
NOTE: Apportion net realized capital gains or losses
among life insurance lines and accident and health
the Internal Revenue Code that was claimed in com-
insurance lines in the same manner as net
puting the federal taxable income you reported for the
investment income is required to be apportioned by
insurance company on Form 4, line 1.
the Commissioner of Insurance. Net realized capital
■ Line 4. Total – Enter this amount on Schedule 4V,
gains or losses are allocated after the Interest
Maintenance Reserve (IMR) adjustment and before
line 9.
capital gains tax.
IC-120
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