How to File Your Wisconsin Tax Return for 2020: A Step-by-Step Guide

Filing your Wisconsin state income tax return for 2020 may feel overwhelming, especially if you are new to the process or managing federal and state obligations. This guide provides clear, step-by-step instructions to help you prepare your return accurately and on time. Whether you plan to e-file through the Wisconsin Department of Revenue’s online services or submit a paper return, understanding the process is essential for avoiding errors and ensuring your submission is complete.

Timely and accurate filing matters because it helps you avoid unnecessary penalties, delays in your refund, and potential complications with the IRS and the Wisconsin Department of Revenue. Filing by the official April deadline ensures compliance with state taxes and gives you access to eligible credits or deductions. If you are owed a refund, prompt filing means faster processing and payment, whether through direct deposit or paper check.

This guide is designed for individuals, sole proprietors, and small business owners who need to file a Wisconsin return for the 2020 tax year. It follows official tax information and instructions from the Wisconsin Department of Revenue, making it a reliable resource for navigating your filing obligations. Whether you use free online software or hire a tax professional, the steps outlined here will help you submit your return confidently and in compliance with all applicable revenue requirements.

Overview of Wisconsin State Income Tax for 2020

Understanding the filing requirements for the 2020 tax year is the first step in meeting your Wisconsin income tax obligations. The Wisconsin Department of Revenue requires you to file a state return if your gross income meets certain thresholds based on your filing status and age as of December 31, 2020. These thresholds differ for single filers, married couples, and heads of household, and they also take age into account.

Filing requirements by status and age:

Single filers under 65: Must file if Wisconsin gross income was $11,750 or more.
Single filers 65 or older: Must file if Wisconsin gross income was $12,000 or more.
Married filing jointly (under 65): Must file if combined gross income was $21,870 or more.
Married filing jointly (one 65+): Must file if combined gross income was $22,120 or more.
Married filing jointly (both 65+): Must file if combined gross income was $22,370 or more.
Married filing separately (under 65): Must file if income was $10,420 or more, per spouse.
Married filing separately (65+): Must file if income was $10,670 or more, per spouse.
Head of household (under 65): Must file if income was $14,980.
Head of household (65+): Must file if income was $15,230.

You may also need to file even if your income exceeds these thresholds. This applies if you could be claimed as a dependent and had more than $1,100 in gross income (including at least $351 of unearned income), if you owe penalties on retirement or education savings accounts, or if you were a nonresident or part-year resident with Wisconsin gross income of $2,000 or more.

For 2020, there were several notable changes. Wisconsin reduced the first two tax bracket rates from 4% to 3.54% and from 5.21% to 4.65%, providing modest relief for many taxpayers. The state also redesigned Form 1, moving certain additions and subtractions to new schedules (Schedule AD and Schedule SB). In addition, Wisconsin adopted federal COVID-19 relief measures, excluding forgiven Paycheck Protection Program (PPP) loans and specific grants from taxable income. The filing deadline was initially April 15, 2021, but an extension matched the federal postponement for that year.

Wisconsin Tax Forms You’ll Need

Before you begin preparing your 2020 Wisconsin state income tax return, gathering the correct forms and instructions from the Wisconsin Department of Revenue is essential. Using the official versions ensures accuracy and helps you avoid processing delays. Whether you e-file or submit a paper return, the required forms depend on your residency status and the deductions or credits you plan to claim.

Main Forms for Individuals

Form 1 – Wisconsin Income Tax Return: This is for full-year residents who lived in Wisconsin for the entire 2020 tax year.
Form 1NPR – Nonresident and Part-Year Resident Return: For those who lived outside Wisconsin during part or all of the year, or for married couples with one spouse domiciled elsewhere.

Common Schedules and Supporting Forms

Schedule AD – Additions to Income: Used to report items that must be added to your federal adjusted gross income for Wisconsin purposes.
Schedule SB – Subtractions from Income: Allows subtractions for items such as Wisconsin college savings contributions and certain retirement benefits.
Schedule H or H-EZ – Homestead Credit: This is for eligible residents who meet household income requirements for property tax relief.
Schedule FC or FC-A – Farmland Preservation Credit: For qualifying farmland owners.
Schedule CR – Nonrefundable and Refundable Credits: To claim additional Wisconsin tax credits.
Schedule DE – Disregarded Entity Schedule: For single-member LLCs and other disregarded entities filing in Wisconsin.

You can check the Wisconsin Department of Revenue forms page to download these documents and their instructions free of charge. Make sure you use forms labeled explicitly for the 2020 tax year, as prior or later year versions may cause errors in your return.

Step-by-Step Instructions for Filing Your Wisconsin Return

Filing your 2020 Wisconsin tax return involves several key steps. Following each stage can avoid errors, ensure credit eligibility, and speed up processing—whether you e-file or send a paper return.

Step 1 – Gather Required Documents

Before you begin, collect all the forms and records you need to prepare your return:

W-2 forms from employers showing wages and Wisconsin income tax withheld.
1099 forms (e.g., 1099-INT, 1099-DIV, 1099-G, 1099-R, 1099-MISC, 1099-NEC) reporting income from interest, dividends, unemployment, retirement accounts, or contract work.
Records of estimated taxes paid to the Wisconsin Department of Revenue during 2020.
Receipts for deductible expenses, such as tuition or college savings contributions.
A completed federal tax return for 2020.
Your prior year’s Wisconsin return for reference.

Step 2 – Complete Your Federal Return First

Wisconsin’s calculations begin with your federal adjusted gross income. Even if you are not required to file with the IRS, you must create a worksheet listing your income sources and amounts so the state has a starting figure for your return.

Step 3 – Determine Your Filing Status

Wisconsin generally follows your federal filing status but includes special rules for military personnel and nonresidents. The main options are

Single
Married filing jointly
Married filing separately
Head of household

Step 4 – Calculate Wisconsin Adjusted Gross Income

Start with your federal adjusted gross income. Then apply state-specific adjustments:

Additions (Schedule AD): Examples include state and local income taxes deducted on your federal return, interest from non-Wisconsin municipal bonds, and specific depreciation differences.
Subtractions (Schedule SB) include interest from U.S. government obligations, eligible Wisconsin retirement benefits, and contributions to Wisconsin college savings accounts.

Step 5 – Choose Standard Deduction or Itemized Deductions

Wisconsin offers a standard deduction that varies based on filing status and income level. If your itemized deductions exceed this amount, you may choose to itemize instead. This choice can affect your refund or the amount you need to pay.

Step 6 – Calculate Wisconsin Tax

Use the 2020 tax tables in the Form 1 instructions or the tax computation worksheet. Wisconsin has four brackets for 2020, with rates ranging from 3.54% to 7.65%. Be sure to apply the correct rate for your income level.

Step 7 – Apply Credits

Wisconsin offers several credits that can lower your tax liability.

Earned Income Credit (based on the federal EIC)
Homestead Credit (for qualifying property owners or renters)
School Property Tax Credit
Veterans and Surviving Spouses Property Tax Credit

Step 8 – Determine Tax Due or Refund

Subtract your total credits and withholdings from your calculated tax. If the result is negative, you are due a refund; if positive, you owe tax and must arrange payment. You may choose direct deposit for faster refunds or request a paper check.

Filing Methods: Electronic vs. Paper

Wisconsin taxpayers can file their 2020 state tax return electronically (e-file) or by mailing a paper return. Choosing the correct method depends on your preferences, eligibility for specific filing systems, and how quickly you want your refund.

Electronic Filing (WisTax and Authorized Software)

The Wisconsin Department of Revenue offers WisTax, a free online filing system for eligible taxpayers. WisTax guides you through the process, calculates your taxes, and allows for direct deposit of refunds or scheduling of payments. You can also use approved commercial tax software or work with a tax professional to e-file. Benefits include:

Faster processing and refunds compared to paper filing.
Fewer errors due to built-in validation checks.
Electronic confirmation of submission.

Paper Filing

If you prefer to submit a paper return, download and print the correct 2020 forms from the Wisconsin Department of Revenue website. Complete all required forms in black ink, using capital letters, and round amounts to the nearest dollar. Follow the prescribed assembly order:

Payment (if owed)—paper clip to the front of Form 1.
Wisconsin schedules and supporting forms.
W-2s and 1099s showing Wisconsin withholding.
Complete federal return and schedules.
Extension documentation (if applicable).

Mail your return to the correct address listed in the instructions, based on whether you are due a refund or owe taxes. Private delivery services such as UPS or FedEx may be used for time-sensitive submissions.

Keeping Copies for Your Records

Always keep a complete copy of your submitted return, payment confirmations, and related tax information. These records will be vital if you receive correspondence from the IRS or Wisconsin Department of Revenue or need to reference prior year filings for business or personal purposes.

How to Make a Payment

If you owe taxes on your 2020 Wisconsin tax return, the Wisconsin Department of Revenue offers multiple ways to submit payment. Choosing the right option depends on your preferred payment method, processing speed, and whether you want to schedule your payment in advance.

Online Payment Portal

The Wisconsin Department of Revenue’s online payment portal is the fastest and most secure way to pay. This free service allows you to:

Pay directly from your bank account using an ACH transfer.
Schedule payments up to the April filing deadline.
Receive instant confirmation for your records.
Avoid delays common with paper check payments.

Credit or Debit Card Payments

You may pay by credit or debit card through authorized processors. Processing fees apply, and rates vary by provider. To find approved vendors, you can check the Wisconsin Department of Revenue’s website or call their customer service line.

Traditional Payment Methods

Paper check or money order: Make payable to “Wisconsin Department of Revenue.” Include your name, address, Social Security number, tax year (2020), and daytime phone number—paperclip the payment to the front of your Form 1.
Electronic Funds Transfer (EFT): This option is available when you e-file your return and allows you to choose the payment date.

Payment Deadlines and Penalties

Original payment due date: April 15, 2021.
Interest: 18% annually (1.5% per month) on unpaid balances.
Failure-to-pay penalty: 1% per month on unpaid taxes.

Even if you cannot pay in full, paying on time reduces penalties and prevents the Wisconsin Department of Revenue from taking further collection action.

How to Track Your Refund or Balance Due

After you file your 2020 Wisconsin tax return, you can monitor your refund or check if you still owe taxes through tools provided by the Wisconsin Department of Revenue. Using these official resources helps you avoid delays and ensure accurate tax information.

Online Refund Status Tool

The fastest way to track your refund is through the department’s secure Refund Status Tool. You will need:

Your Social Security number.
Your filing status.
The exact refund amount from your return.

Electronic filings typically process faster than paper returns. Direct deposit refunds may arrive in at least three weeks, while paper check refunds may take longer.

Refund Hotline and Email Inquiry

If you prefer to use the phone, call the automated refund hotline:

Madison area: (608) 266-8100
Milwaukee area: (414) 227-4907
Toll-free: 1-866-WIS-RFND (1-866-947-7363)

You can submit an inquiry through the department’s secure email system for complex questions.

Refund Processing Times

E-file: Typically 3 weeks or less for direct deposit.
Paper return: 6–12 weeks for processing.
Complex returns: Up to 12 weeks due to additional review or IRS matching.

Balance Due Inquiries

To check your outstanding balance, you can:

Log in to your Wisconsin Tax Account Portal.
Call the Department’s customer service line.
Visit a local Department of Revenue office for assistance.

Common Mistakes to Avoid

Avoiding common errors when you file your 2020 Wisconsin tax return can save time, prevent penalties, and speed up your refund. These mistakes are easily controlled with careful review before submission to the Wisconsin Department of Revenue.

Missing signatures: If you are filing jointly, both spouses must sign the return, whether you e-file or submit a paper version. Missing signatures can delay processing.
Mathematical errors: Double-check all calculations, especially when determining your Wisconsin adjusted gross income, deductions, and credits.
Missing required forms: Include all necessary schedules, W-2s, and 1099s. Missing documents can hold up your refund or cause the department to request additional tax information.
Using outdated forms: Always use official 2020 Wisconsin forms. Forms from other years will result in processing delays.
Incorrect Social Security numbers: Verify that all names and numbers exactly match Social Security records.
Not accounting for estimated payments: Include any taxes you already paid during 2020 to avoid being billed for amounts you’ve already covered.

Frequently Asked Questions

What if I missed the 2020 Wisconsin filing deadline?

If you missed the April 15, 2021, deadline, file as soon as possible to reduce penalties and interest. The Wisconsin Department of Revenue charges a failure-to-file penalty plus interest on unpaid taxes. Even if you cannot pay in full, submitting your return promptly helps avoid further collection actions and shows good faith in resolving your state tax obligations.

Can I e-file my Wisconsin return for free?

The Wisconsin Department of Revenue offers WisTax, a free online e-file system for eligible taxpayers. You can also use IRS Direct File or other approved software if available. These tools help you prepare your return accurately and speed up refund processing compared to paper filing, making them a convenient and secure choice for most individuals and small business owners.

What deductions and credits are most often missed?

Commonly missed Wisconsin tax benefits include the Homestead Credit, College Savings Account deduction, Tuition and Fees deduction, and School Property Tax Credit. These can reduce your tax liability or increase your refund if you qualify. Review the official Wisconsin Department of Revenue tax information to ensure you claim all eligible deductions and credits before filing your return.

How do I request a Wisconsin tax extension?

Wisconsin accepts any federal extension. To request one, submit a copy of your federal extension form with your return or a statement referencing your federal extension. Remember, an extension only grants more time to file—not to pay. You must still pay any taxes owed by the April deadline to avoid penalties and interest from the Wisconsin Department of Revenue.

Can I file jointly if I moved during 2020?

Yes, you can file a joint Wisconsin return if you moved, but the form you use depends on your residency status. If both spouses were residents for the whole year, use Form 1. If one or both were part-year residents or nonresidents, use Form 1NPR. Follow the Wisconsin Department’s instructions to ensure your income is correctly allocated and taxed.

What if I can’t pay the full amount I owe?

Contact the Wisconsin Department of Revenue to discuss payment options if you cannot pay your Wisconsin taxes in full. These may include installment agreements, temporary collection delays, or hardship arrangements. Even partial payments can reduce interest and penalties. Avoid ignoring the balance, as unpaid taxes may result in enforced collection actions and additional costs.

How long should I keep my Wisconsin tax records?

Keep your Wisconsin tax records for at least four years after filing. Retain copies of your return, W-2s, 1099s, and supporting documents. You may need them if the Wisconsin Department of Revenue or the IRS requests verification or conducts an audit. For business owners, retain records related to assets and depreciation for as long as the asset is in use.

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