Can I recover the amount of federal itemized deductions that was taxable on my Wisconsin return in prior year?
Can I recover the amount of federal itemized deductions that was taxable on my Wisconsin return in prior year?
Recoveries of Federal Itemized Deductions
Fill in any amount included as income on your federal tax return that is a recovery of a federal itemized deduction from a prior year for which you did not receive a Wisconsin tax benefit.
Example You claimed an itemized deduction on your 2020 federal tax return for a casualty loss of $2,000. You could not claim the casualty loss for the itemized deduction credit on your 2020 Wisconsin income tax return. During 2021 you received a reimbursement of $1,000 from your insurance company for part of the casualty loss. The $1,000 reimbursement is included on your 2021 federal tax return as a recovery of an amount previously claimed as an itemized deduction. Because you did not claim the casualty loss for the itemized deduction credit for Wisconsin for 2020, the $1,000 is not taxable to Wisconsin for 2021. Fill in the $1,000 recovery on line 28.
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