Schedule2440W: Schedule2440W (2025)

Who files this form

Use Schedule 2440W to figure your Wisconsin disability income exclusion for 2025. You can claim the exclusion only if you meet all of these tests:

• You received disability income that is not otherwise exempt from Wisconsin tax.
• You were under age 65 at the end of 2025. If you were born on January 1, 1960, you are considered age 65 at the end of 2025.
• You retired on disability and were permanently and totally disabled when you retired.
• On January 1, 2025, you had not reached your employer’s required retirement age.
• You did not choose, for any year before 1984, to treat your disability income as a pension instead of taking the exclusion.
• If you were married at the end of 2025, you file a joint return.
• You were a Wisconsin resident when you received the disability income.

What you'll need

Have the following information ready:

• Your legal name and Social Security number as shown on Form 1 or Form 1NPR.
• Your employer’s name, the payer’s name if different, and your retirement date. The schedule also has spaces for your spouse’s information.
• The disability pay included in your federal adjusted gross income and any portion otherwise exempt from Wisconsin tax.
• Your disability payment amounts and the weeks covered. For partial weeks, you need the days covered and the number of days you normally worked each week before retirement.
• The amount from Form 1, line 3, or Form 1NPR, line 31.
• For part-year residents, the number of weeks you received disability payments while a Wisconsin resident.

Disability statement: Unless you previously filed a physician’s statement for this disability, you must provide one. You may use the statement on Schedule 2440W or a copy of the physician’s statement completed for federal Schedule R if you are filing that schedule. If the VA certifies that you are permanently and totally disabled, you may instead submit VA Form 21-0172 signed by an authorized VA person.

How to file

Include Schedule 2440W with Wisconsin Form 1 or Form 1NPR.

1. Enter your disability pay on line 1, excluding amounts otherwise exempt from Wisconsin tax.
2. Calculate the weekly and partial-week exclusions on lines 2a through 2d, then complete lines 3 through 6 to apply the income limit.
3. If you are a full-year resident, enter the line 6 exclusion on Schedule SB (Form 1), line 22.
4. If you are a part-year resident, complete lines 7 and 8. Enter the line 8 exclusion on Schedule M (Form 1NPR), line 56.
5. Check line 9 if you filed a physician’s statement for this disability in an earlier year. Otherwise, provide the required statement.

The supplied text does not give a mailing address or e-filing directions.

Common mistakes

• Including pay already exempt from Wisconsin tax. Line 1 must exclude those amounts.
• Overlooking the age rule. A person born on January 1, 1960, is considered age 65 at the end of 2025 and does not meet the under-65 test.
• Entering negative amounts. Enter zero on line 5c if line 5b exceeds line 5a, and on line 6 if line 5c exceeds line 4.
• Skipping the part-year calculation. Part-year residents must complete lines 7 and 8 rather than use line 6 as their final exclusion.
• Missing the disability statement requirement. If you have not previously filed a statement for this disability, you must provide one. If both spouses claim the exclusion, each must meet the statement requirement.

Questions people ask

What counts as disability income?

Generally, it is pay under your employer’s accident and health plan or pension plan that replaces wages while you are absent from work because of permanent and total disability. Payments from a plan that does not provide for disability retirement do not qualify.

How much can I exclude?

The weekly exclusion is your actual weekly disability pay or $100, whichever is less. Generally, the maximum is $5,200 per person. The exclusion decreases dollar for dollar by the amount on line 5a above $15,000. Generally, no exclusion remains when line 5a is $20,200 or more for one eligible person, or $25,400 or more when both spouses are eligible.

What does permanently and totally disabled mean?

You cannot engage in substantial gainful activity because of a physical or mental condition. A physician must determine that the condition has lasted, or is expected to last, continuously for at least a year, or is expected to result in death.

Do I need a new physician’s statement every year?

No. If you filed a physician’s statement for this disability in an earlier year, check the box on line 9. You do not have to file another statement.

Official sources

• https://www.revenue.wi.gov/TaxForms2025/2025-Schedule2440W.pdf