FormPW-2: FormPW-2 (2025)
Wisconsin · Wisconsin DOR · Used for tax years 2025
Wisconsin Form PW-2 is an affidavit nonresident partners, members, shareholders, or beneficiaries use to request an exemption from withholding on pass-through income. It reports the owner’s Wisconsin income and credits from each pass-through entity and the reason for requesting t
Who files this form
Nonresident partners, members, shareholders, or beneficiaries use Form PW-2 to request an exemption from withholding on income from a pass-through entity.
The nonresident owner must file the request. A pass-through entity cannot file it on behalf of its owners.
Do not file if you have less than $2,000 of Wisconsin source income from the entity. The entity is already exempt from withholding on your behalf.
Part 5 lists reasons for requesting an exemption, including estimated payments or a prior-year overpayment, qualifying Wisconsin loss carryforwards, qualifying Wisconsin credits or credit carryforwards, or another reason explained on the form.
When it's due
For the 2025 form, the filing deadline depends on the pass-through entity’s taxable year:
- Tax-option (S) corporation or partnership: One month after the close of its taxable year.
- Estate or trust: Two months after the close of its taxable year.
Form PW-2 filed after the due date will not be accepted.
What you'll need
Have the following information ready:
- Your name, address, SSN or FEIN, taxpayer type, and the last day of your taxable year.
- The Wisconsin return you will use to report your Wisconsin source income.
- Each pass-through entity’s name, address, FEIN or SSN, entity type, and last day of its taxable year.
- Your share of Wisconsin income and credits from each entity.
- Amounts and details supporting the exemption you claim, such as estimated payments, an applied prior-year overpayment, a Wisconsin loss carryforward, or credits.
Include these additional items when applicable:
- A separate Parts 3, 4, and 5 for each pass-through entity if you request an exemption for more than one.
- An explanation if your estimated payments do not cover the income allocated to you after accounting for the entity’s credits, explaining why you believe the payments are sufficient.
- A schedule listing each credit’s name, amount, and source identification number, if applicable, when you have more than one credit.
- An explanation if you select “Other” as your exemption reason.
Grantor trusts, members of a combined return, and disregarded entities must provide the reporting taxpayer’s name and SSN or FEIN.
How to file
The supplied form is marked “Sample Form File Electronically.” It also directs filers to the instructions for filing methods. No electronic filing website or mailing address is provided in the supplied text.
Complete the owner information and agreement in Parts 1 and 2, the entity information in Part 3, your Wisconsin income and credits in Part 4, and all applicable exemption reasons in Part 5. Sign and date the affidavit.
If approved, provide the pass-through entity with a copy of the approved Form PW-2 and any response letters from the Wisconsin Department of Revenue. The entity must continue withholding until it receives the approved form from you.
Common mistakes
- Having the entity file for you. A pass-through entity may not file Form PW-2 on behalf of its owners.
- Stopping withholding before approval is received. The entity must withhold until it receives an approved Form PW-2 from the owner.
- Filing when your Wisconsin source income from the entity is less than $2,000. The form says not to file because withholding is already exempt.
- Leaving out separate entity details. Requests covering multiple entities need separate Parts 3, 4, and 5 for each entity.
- Omitting an explanation for insufficient estimated payments. Explain why you believe the payments are sufficient if they do not cover the allocated income after accounting for the entity’s credits.
- Claiming a loss carryforward without filing the loss-year returns. Do not check that exemption box unless you filed Wisconsin income or franchise tax returns for every year of losses that produced the carryforward.
Questions people ask
Does this exemption mean I do not have to file a Wisconsin tax return?
No. By signing the affidavit, you agree to timely file a Wisconsin income or franchise tax return for the tax year provided in Part 1.
Can I request an exemption for more than one pass-through entity?
Yes. Complete separate Parts 3, 4, and 5 for each entity and include them with Form PW-2. Indicate the number of entities covered by your request.
How will I know whether my request was approved?
The Department of Revenue will notify you of approval or denial. You are responsible for providing the approved form and any response letters to the entities for which you claim the exemption.
Can I appeal the department’s decision on this affidavit?
No. The form states that approval or denial does not constitute an audit and may not be appealed.