Wisconsin Wisconsin Alternative Minimum Tax

Wisconsin Alternative Minimum Tax
2017 I-129 Instructions for Wisconsin Schedule MT
Instructions for 2017 Wisconsin Schedule MT
General Instructions
Who Must File
Generally, you may have to pay alternative minimum tax
if your Wisconsin income combined with any adjustment
or tax preference items totals more than:
	

•	 $84,500 if married filing a joint return,

	

•	 $54,300 if single or head of household,

	

•	 $42,250 if married filing a separate return, or

	

•	 $24,100 if a trust or estate.

(Note: These guidelines do not apply to part-year resident
and nonresident individuals, estates, and trusts because
of required proration.)
See the instructions for federal Form 6251 (Schedule I
of Form 1041 for estates and trusts) for descriptions of
adjustment and tax preference items.
Individuals, estates, and trusts must file Schedule MT if
the income tax computed on line  26 of Wisconsin Form  1,
line 52 of Wisconsin Form 1NPR, or line 8 of Wisconsin
Form  2 is less than the Wisconsin tentative minimum tax.

Specific Instructions
CAUTION: The Internal Revenue Service hadn’t finalized
the 2017 federal Forms 1041 and 6251 at the time that
Schedule MT went to print. Therefore, line numbers on
federal Forms 1041 and 6251 referred to on Schedule MT
and in these instructions may change.
Line 1   Federal Alternative Minimum Taxable Income
(AMTI)
Individuals – Fill in your federal AMTI from line 28 of
federal Form 6251.
Estates and Trusts – Fill in your share of AMTI from line 29
of Schedule I of federal Form 1041.
Exceptions
•	 If you are required to file a Wisconsin Schedule I
(complete Schedule  B of Form  2 for estates and trusts)
because differences between federal and Wisconsin
law affect you, you must recompute Form 6251
(Schedule I of Form 1041 for estates and trusts),
substituting the federal income amounts determined
on Wisconsin Schedule I (using Schedule B of Form 2
for estates and trusts) for the income shown on federal
Form 1040 (Form 1041 for estates and trusts). Label
this recomputed Form 6251 (Schedule I of Form 1041
for estates and trusts) “Wisconsin” and enclose it with
your Wisconsin income tax return.

I-129 (R. 11-17)

•	 If you are married filing a separate federal income tax
return and are required to include an additional amount
of federal AMTI on line 28 of federal Form 6251 because
your federal AMTI exceeds $249,450, fill in on line  1 of
Schedule MT the federal AMTI before such additional
amount was included.
Line 2  Additions
Because your federal AMTI (line 1 of Schedule MT) may
include items which are not deductible for Wisconsin, or
such federal income does not include items which are
taxable for Wisconsin, you may have to add these items
to arrive at the correct Wisconsin AMTI.
Resident Individuals – Fill in lines 2a, 2b, and 2c. Do not fill
in an amount on line 2d or 2e. Also, fill in lines 2f and 2g.
Exception  If you are a beneficiary of an estate or trust,
fill in on line 2d the amount of state and local taxes which
is included in Column (c) of your Schedule 2K-1.
Resident Estates and Trusts – Fill in lines 2a through 2g.
For line 2b, fill in only the portion of the tax preference
for tax-exempt interest from line 8 of Schedule I of your
federal Form 1041 which is allocable to nondistributable
income.
Part-Year Resident and Nonresident Individuals, Estates,
and Trusts – Fill in ‑0‑ on line 2g and see the instructions
for line 4.
Line 3  Subtractions
Because your federal AMTI (line 1 of Schedule MT) may
in­c lude items which are not taxable for Wisconsin, or
such federal income does not include items which are
deductible for Wisconsin, you may have to subtract these
items to arrive at the correct Wisconsin AMTI (for example,
the Wisconsin capital gain exclusion is subtracted from
federal AMTI to arrive at Wisconsin AMTI).
Resident Individuals – Fill in lines 3a, 3b, and 3c. Do not
fill in an amount on line 3d. Also, fill in lines 3e and 3f.
Resident Estates and Trusts – Fill in lines 3a through 3f.
Part-Year Resident and Nonresident Individuals, Estates,
and Trusts – Fill in ‑0‑ on line 3f and see the instructions
for line 4.
Line 4
Resident Individuals, Estates, and Trusts – If line 3f is
smaller than line 2g, subtract line 3f from line 2g and
fill in the result on line 4. If line 3f is larger than line 2g,
subtract line 2g from line 3f and fill in the result as a
negative number.

Itemized Deduction Addback Worksheet

Part-Year Resident and Nonresident Individuals, Estates,
and Trusts – Complete the following worksheet to
determine the amount to fill in on line 4.

Figure the amount to add back as follows:
	 1.	Itemized deductions from line 40
		of federal Form 1040 and line 6 of
		federal Form 6251 (treat as a positive
		
number) less amounts from lines 2
		through 5 and 8 of federal Form 6251 .1.

	 1.	Wisconsin income from line 32 of
		
Form 1NPR* (line 2, Part II of Schedule NR) .1.
	 2.	Wisconsin net operating loss included
		on line 15, column B of Form 1NPR
		
(line 16, column (b) of Schedule NR).
		Enter as a positive number . . . . . . .  2.

	 2.	Fill in one (1.00) minus the proration
		ratio from line 34 of Form 1NPR . . . . 2.

	 3.	State income tax refund from line 4,
		column A of Form 1NPR
		
(line 8, column (a) of Schedule NR) . .  3.

	 3.	Multiply line 1 by line 2. Fill in the result
		here and on line 6 of Schedule MT . . 3.
Line 8  Adjustments

	 4.	Recoveries of federal itemized
		deductions included on line 15,
		column A of Form 1NPR
		
(line 8, column (a) of Schedule NR) . .  4.

•	 If adjustments and preferences reported on lines 9, 12,
and 14 through 27 of federal Form 6251 (lines 2, 4, 6, 8,
and 10 through 23 of Schedule I of federal Form 1041
for estates and trusts) did not result in a tax benefit
for Wisconsin tax purposes, fill in the net amount of
those adjustments and preference items on line 8 of
Schedule MT. Adjustments and preferences will not
produce a tax benefit if you are a part-year resident
or nonresident of Wisconsin and the related income
or deduction does not have a Wisconsin situs. (Note:
Also include any portion of the adjustment from line 8
of federal Form 6251 that relates to investment interest
expense reported on Schedule E which did not result in
a tax benefit.)

	 5.	Add lines 1 through 4 . . . . . . . . . . . .  5.
	 6.	Federal income (see Note below)
		from line 33 of Form 1NPR *
		
(line 24, column (a) of Schedule NR) .  6.
	 7.	Federal net operating loss carryover
		from line 21 of federal Form 1040
		
(line 16, column (a) of Schedule NR).
		Enter as a positive number . . . . . . . . 7.
	 8.	Estates and trusts – taxes from line
		11, column (a) of Schedule NR . . . . .  8.

	 Example:  You are a nonresident of Wisconsin, but are
required to file a Wisconsin income tax return because
of rental property you own in Wisconsin. On lines 18
and 19 of federal Form 6251 you report an accelerated
depreciation tax preference of $5,000 that relates
to rental property you own in Illinois and a passive
activity loss adjustment of $5,000 that relates to an
Iowa partnership in which you are a limited partner.
The income from your rental property in Illinois is not
taxable to Wisconsin and the income from your limited
partnership interest is not allocable to Wisconsin. The
total of the accelerated depreciation tax preference and
passive activity loss adjustment ($10,000) should be
filled in on line 8 of Schedule MT as a negative number.

	 9.	Add lines 6 through 8 . . . . . . . . . . . .  9.
	 0.	If line 9 is smaller than line 5, subtract
1
		line 9 from line 5 and fill in the result.
		If line 9 is larger than line 5, subtract
		line 5 from line 9 and fill in the result
		as a negative number. . . . . . . . . . . . 10.
Fill in the amount from line 10 of the worksheet on line 4
of Schedule MT.

*	If line 31 is greater than line 16, subtract line 31 from
line 16 and enter as a negative number.

Note:  If military compensation of a nonresident was
excluded from line 1, Column A of Form 1NPR, include
the amount excluded in federal income.

	CAUTION:  Estates and trusts should only enter
amounts allocable to nondistributable income.

Line 6  Itemized Deduction Addback

	 Example:  A nonresident trust is required to file a
Wisconsin tax return because of rental property owned
in Wisconsin. Line 4 of Schedule I of federal Form 1041
reports miscellaneous itemized deductions of $10,000
that relate to interest and dividends, one-half of which
are nondistributable income. As the interest and dividend
income is not allocable to Wisconsin, the amount of the
miscellaneous itemized deduction adjustment allocable
to nondistributable income ($5,000) should be filled in
on line 8 of Schedule MT as a negative number.

Resident Individuals and Estates and Trusts – Fill in -0on line 6.
Part-Year Resident and Nonresident Individuals – You may
have to add back to federal AMTI a portion of your itemized deductions. Fill in the worksheet in the next column.

I-129 (R. 11-17)

2

•	 If the difference between the Wisconsin adjusted basis
and the federal adjusted basis of depreciable assets
owned on the last day of your 2013 tax year is not the
same for regular tax and minimum tax purposes, fill in
20% of the difference on line 8 of Schedule MT.

•	 If an amount reported on line 14 of federal Form 6251
(line 10 of Schedule I of federal Form 1041 for estates
and trusts) with regard to incentive stock options is
included in federal AMTI, that adjustment relating to
stock options (including any basis adjustment) should
be reduced by 20% for Wisconsin purposes. Fill in the
20% reduction on line 8 of Schedule MT.

	 Example:  For regular tax purposes, there is a basis
adjustment of ($25,000) resulting from the difference
between the Wisconsin adjusted basis and the federal
adjusted basis of depreciable assets owned on the
last day of your 2013 tax year. The basis adjustment
for minimum tax purposes is ($35,000). Fill in $2,000
($10,000 x 20%) as a negative number on line 8 of
Schedule MT.

	CAUTION:  Do not add back 20% of the federal basis
adjustment made when incentive stock option stock is
sold if you did not receive a Wisconsin tax benefit from
reducing the federal adjustment in the year of exercise
by 20%.
•	 If any addition or subtraction amount on line 2a or 3a of
Schedule MT (or used in computing Wisconsin income
for nonresidents or part-year residents) relates to items
that generate adjustment or preference amounts for
minimum tax purposes on lines 9, 12, and 14 through
27 of federal Form 6251 (lines 6, 8, and 10 through 23 of
Schedule I of federal Form 1041 for estates and trusts),
any resulting increase or decrease in the amount of the
adjustment or preference item for Wisconsin purposes
should be filled in on line 8 of Schedule MT.

Line 12  Wisconsin Alternative Tax Net Operating
Loss (ATNOL)
If you sustained a Wisconsin regular tax net operating
loss (NOL) in years prior to 2017, you must compute your
Wisconsin ATNOL and carryforward.
If you sustain a Wisconsin regular tax NOL in 2018 or
2019 and elect to carry it back to 2017, you must compute
your Wisconsin ATNOL and carryback.

	 Example:  On line 2a of Schedule MT, you claimed an
addition (from Schedule T) due to a difference in basis
for federal and Wisconsin purposes. The property is
depreciated using the ACRS method of depreciation.
As a result, you reported as a tax preference the
difference between ACRS depreciation and straight
line depreciation on federal Form 6251. The amount
of this tax preference should be reduced to reflect the
difference in depreciation allowable for Wisconsin and
federal purposes.

Your ATNOL for the loss year is your regular tax NOL
reduced or increased, as appropriate, by those tax
preference items and adjustments from federal Form 6251
for the loss year that applied for Wisconsin. If in any year
the tax preferences and adjustments are greater than your
regular tax NOL, you do not have an ATNOL for that year.
An ATNOL for years prior to 2014 may be carried forward
and used to decrease AMTI for up to 15 years. An ATNOL
for 2014 and future years may be carried back for 2 years
and then carried forward for up to 20 years. If 2017 is the
first year to which the ATNOL is carried, the amount of the
carryforward or carryback is the amount of the ATNOL.
Otherwise, the amount of the carryforward or carryback is
the amount of the ATNOL remaining after subtracting the
amount used in the preceding carryforward or carryback
year(s) to decrease AMTI. You must consider the ATNOL
used in each carryforward or carryback year even if you
did not owe Wisconsin alternative minimum tax each year.

•	 If adjustments or preferences distributed to you from a
tax-option (S) corporation, partnership, estate, or trust
differ for Wisconsin, fill in the amount of the difference
on line 8 of Schedule MT.
	 Example:  On your Wisconsin Schedule 5K-1
(Tax-Option (S) Corporation Shareholders’ Share
of Income, Deductions, etc.), the federal amount of
adjustments distributed is $8,000. An adjustment is
shown in Column (c) of ($3,000) and a Wisconsin
amount of $5,000 is shown in Column (d). Since $8,000
is already included on line 1 of Schedule MT, fill in
$3,000 on line 8 as a negative number.

Example:  Your regular tax NOL and tax preferences are
indicated below. For 2014 and 2015, you used $5,000 of
your ATNOL to decrease AMTI. You would compute your
Wisconsin ATNOL carryover of $9,000 to 2017 as follows:

	 Example:  On your Wisconsin Schedule 3K-1
(Wisconsin Partner’s Share of Income, Deductions,
etc.), the federal amount of tax preferences distributed
is $5,000. A modification is shown in Column (c) of
($2,000) and a Wisconsin amount of $3,000 is shown in
Column (d). Since $5,000 is already included on line 1
of Schedule MT, fill in $2,000 on line 8 of Schedule MT
as a negative number.

	
Regular tax NOL	
Less tax preferences	

$5,000	 $15,000	 $29,000
2,000	
4,000	 33,000

ATNOL	

$3,000	 $11,000	 $

Less ATNOL used to
decrease AMTI	
ATNOL carryover available
for 2017	

I-129 (R. 11-17)

3

2014	2015	 2016

3,000	

2,000	

$ - 0 -	 $ 9,000	 $

-0-0-0-

Line 13 If you are married filing a separate Wisconsin
income tax return and the result of subtracting line 12
from line  11 is more than $249,450, complete the following
worksheet:

	1.	 Fill in the amount from line 13 of
		 Schedule MT . . . . . . . . . . . . . . . . . . . 1.

	1.	 Subtract line 12 of Schedule MT
		 from line 11 of Schedule MT . . . . . . . 1.

	2.	 Fill in $160,900 ($120,700 if single or
		 head of household, or $80,450 if
		 married filing separately or an estate
		 or trust) . . . . . . . . . . . . . . . . . . . . . .  2.

	2.	 Exemption amount . . . . . . . . . . . . . .  2._ $ 249,450

	3.	 Subtract line 2 from line 1 . . . . . . . .  3.

	3.	 Subtract line 2 from line 1 . . . . . . . .  3.

	4.	 Multiply line 3 by .25 (25%). If this form
		 is for a part-year resident or nonresident
		 individual, a nonresident estate or trust,
		 or a part-year resident trust, complete
		 line 5 or 6 below. Otherwise stop here
		 and fill in this amount on line 15 of
		 Schedule MT . . . . . . . . . . . . . . . . . .  4.

	4.	 Multiply line 3 by .25 (25%) . . . . . . .  4.
	5.	 Enter the smaller of line 4 or $42,250 .5.
	6.	 Add lines 1 and 5. Fill in the result
		 here and on line 13 of Schedule MT . 6.
If the amount filled in on line 13 is zero or less, do not fill
in the rest of this schedule. You do not owe a Wisconsin
alternative minimum tax.

	5.	 Part-year resident and nonresident
		individuals – multiply the amount on
		 line 4 by the proration ratio from line 34
		 of Form 1NPR. Fill in this amount on
		 line 15 of Schedule MT . . . . . . . . . .  5.

Lines 14a and 14b
Resident Individuals, Estates, and Trusts – Fill in the
exemption amount shown on line 14a.

	6.	 Nonresident estates and trusts and
		 part-year resident trusts – multiply
		 the amount on line 4 by the proration
		 ratio on line 3 of the worksheet for
		 line 14b. Fill in this amount on
		 line 15 of Schedule MT . . . . . . . . . .  6.

Part-Year Resident and Nonresident Individuals – Multiply
$84,500 ($54,300 if single or head of household, or
$42,250 if married filing separate return) by the proration
ratio from line 34 of Form 1NPR. Fill in the result on line 14b.
Nonresident Estates and Trusts and Part-Year Resident
Trusts – Use the following worksheet to compute the
amount to fill in on line 14b:

Line 16
Subtract line 15 from line 14a or 14b, as appropriate,
and fill in the result on line 16. If the result is zero or
less, fill in -0-.

Nonresident Estates and Trusts and Part-Year
Resident Trust Worksheet

Line 17

	1.	 Total income from line 9, column (a)
		 of Schedule NR  . . . . . . . . . . . . . . . . 1.

Subtract line 16 from line 13 and fill in the result on line 17.
If the amount filled in on line 17 is zero or less, do not
complete the rest of this schedule. You do not owe a
Wisconsin alternative minimum tax.

	2.	 Total income from line 9, column (b)
		 of Schedule NR . . . . . . . . . . . . . . . . 2.
	3.	 Divide line 2 by line 1 (do not fill in
		 more than one (1)). This is your
		 proration ratio . . . . . . . . . . . . . . . . . . 3.

Line 18 Tentative Minimum Tax

	4.	 Multiply $24,100 by the proration
		 ratio on line 3. Fill in the result on
		 line 14b of Schedule MT  . . . . . . . . . . 4.

Multiply the amount on line 17 by .065 (6.5%) and fill in
the result on line 18.

Line 15  Exemption Phase-Out Amount You must
complete line 15 if:

Fill in the amount of your Wisconsin tax from line 26 of
Wisconsin Form 1, line 52 of Wisconsin Form 1NPR, or
line 8 of Wisconsin Form 2.

	
	
	
	
	

You are:	

Line 19

And line 13 is over:

Married filing jointly. . . . . . . . . . . . .  $160,900
Single or head of household. . . . . . . $120,700
Married filing separately . . . . . . . . . .  $80,450
An estate or trust. . . . . . . . . . . . . . . . $80,450

Line 20 Wisconsin Alternative Minimum Tax
If line 19 is larger than line 18, fill in -0- on line 20. You do
not owe a Wisconsin alternative minimum tax. If line 18
is larger than line 19, subtract line 19 from line 18 and fill
in the result on line 20. This is your Wisconsin alternative
minimum tax due. Fill in this amount on line 27 of Form 1,
line 53 of Form 1NPR, or line 9 of Form 2.

If line 13 of Schedule MT is over these amounts, complete
the worksheet in the next column to compute the amount
to fill in on line 15:
I-129 (R. 11-17)

4