Do I need to report my federal tax refund as income on my Wisconsin state tax return?

No, you do not need to report your federal tax refund as income on your Wisconsin state tax return. This refund is considered a return of your overpaid federal taxes and is not subject to taxation at the state level. However, if you itemized your deductions on your federal return and claimed a deduction for state income tax in the previous year, you may need to include a portion of your federal refund as income on your Wisconsin state tax return. This is known as the state tax refund subtraction modification. The amount to be included is determined by a formula provided by the Wisconsin Department of Revenue. Please refer to the specific instructions in your Wisconsin state tax return form or consult a tax professional for further guidance.