Sales and Use Tax on Out of State Purchases
Did you make any taxable purchases from out-of-state firms in 2016 on which sales and use tax was not charged? If yes, you must report Wisconsin sales and use tax on these purchases if they were stored, used, or consumed in Wisconsin. You must also report sales and use tax on taxable purchases from a retailer located in another country, regardless of whether you were charged any tax for that country or any duty by the U.S. Customs Service.
Taxable purchases include furniture, carpet, clothing, computers, books, CDs, DVDs, video tapes, certain digital goods (e.g., greeting cards, video games, music, and books, transferred electronically), artwork, antiques, jewelry, coins purchased for more than face value, etc.
Example: You purchased $300 of clothing through a catalog or over the Internet. No sales and use tax was charged. The clothing was delivered in a county with a 5% tax rate. You are liable for $15 Wisconsin tax ($300 x 5% = $15) on this purchase.
In all Wisconsin counties except those shown in a through c below, the tax rate was 5.5% for all of 2016.
a. If storage, use, or consumption in 2016 was in one of the following counties, the tax rate was 5.6%:
Milwaukee, Ozaukee or Washington
b. If storage, use, or consumption in 2016 was in one of the following counties, the tax rate was 5.1%:
Racine or Waukesha
c. If storage, use, or consumption in 2016 was in one of the following counties, the tax rate was 5%:
Brown, Kewaunee, Menominee, Sheboygan, Calumet, Manitowoc, Outagamie or Winnebago
Economic Development Surcharge
The economic development surcharge applies to individuals who have trade or business activities in Wisconsin (including activities as a statutory employee) and have $4,000,000 or more of gross receipts from trade or business activities for federal income tax purposes.
Penalties on IRAs, Other Retirement Plans, MSAs, Etc.
The Wisconsin penalty on IRAs, retirement plans, medical savings accounts (MSAs), etc., is equal to 33% of the following federal taxes:
* Tax on IRAs, other qualified retirement plans, etc.,
* Tax on excess contributions
* Tax on prohibited transactions
* Tax on Archer MSA distributions
* Tax on health savings account distribution
Credit Repayments and Other Penalties
If you are required to repay a Wisconsin credit or are subject to a penalty for selling business or farming assets purchased from a related person, enter the amount of the payment. For additional information, please see the instructions for Line 37.