WI - Reporting Income from a Covid-19 Related State Grant



WI - Reporting Income from a Covid-19 Related State Grant

Per the WI Schedule SB Instructions, the following income is exempt from Wisconsin income and franchise tax:

  • Income received from the state of Wisconsin with money received from the coronavirus relief fund authorized under 42 USC 801 to be used for any of the following purposes:
    • Grants to small businesses
    • A farm support program
    • Broadband expansion
    • Privately owned movie theater grants
    • A nonprofit grant program
    • A tourism grants program
    • A cultural organization grant program
    • Music and performance venue grants
    • Lodging industry grants
    • Low-income home energy assistance
    • A rental assistance program
    • Supplemental child care grants
    • A food insecurity initiative
    • Ethanol industry assistance
    • Wisconsin Eye
  • Income received in the form of a grant issued by the Wisconsin Economic Development Corporation during and related to the COVID-19 pandemic under the ethnic minority emergency grant program. 

Income from these programs is included in federal income pursuant to sec. 61 of the Internal Revenue Code, unless an exception applies. For Wisconsin, this income should be excluded from federal adjusted gross income by making a subtraction modification on Schedule SB, line 46, Other subtractions from income. Use a description similar to "Wisconsin COVID-19 Program Funds."          

     See the Wisconsin Schedule SB Instructions for more information.‚Äč

To enter the subtraction in Drake20, in data entry go to WI screen 2, Modifications and Elections. In the Subtractions from Income section of this screen, double click on the Other field to open a detail worksheet where you can enter a brief description and the amount of income to be subtracted. The Other field on screen 2 will then be shaded red to indicate a worksheet is present.

      

This information will then flow to WISB PG 2, line 46 in view mode of the return.