Form W-221 Instructions 
                 Nonresident Military Spouse Withholding Exemption 
 
Instructions for Employee 
 
An employee's wages are exempt from Wisconsin income tax and withholding if the employee meets all the 
following conditions: 
 
   •  The employee is the spouse of a servicemember on active duty or active service. 
      o  In the case of a member of the National Guard, this includes service under a call to active 
       service authorized by the President or the Secretary of Defense for a period of more than 30 
       consecutive days under 32 U.S.C. 502(f) for purposes of responding to a national emergency 
       declared by the president and supported by Federal funds. 
   •  The servicemember is present in Wisconsin in compliance with military orders. 
   •  The spouse is in Wisconsin solely to be with the servicemember. 
   •  The spouse qualifies and chooses to make an election under 50 U.S.C. 4001(a)(3) to use one of the 
     following residences or domiciles: 
     o  The residence or domicile of the servicemember. 
     o  The residence or domicile of the spouse. 
     o  The permanent duty station of the servicemember. 
   •  The spouse's choice of residence or domicile is not Wisconsin. 
 
If you meet all the above conditions, complete Parts I, II, and IV and give the form to your employer. Note: If 
you are a resident of Illinois, Indiana, Kentucky, or Michigan, you should also complete Wisconsin Form W-
220, Nonresident Employee's Withholding Reciprocity Declaration, and give it to your employer. 
 
If you previously claimed this exemption but no longer qualify, you must complete Parts I, III, and IV and give 
the form to your employer. For example, you would complete Parts I, III, and IV if you changed your residence 
to Wisconsin or separated from your spouse. Note: You may be required to complete a Wisconsin Form WT-
4, Employee’s Wisconsin Withholding Exemption Certificate/New Hire Reporting, and give it to your employer 
so that the correct amount of Wisconsin income tax can be withheld from your wages. 
 
It is  the employee's  responsibility to  inform  their  employer  of any changes to  the employee's  residency, 
domicile,  or exemptions.  If  your employer has  withheld Wisconsin income tax while you qualify  for  the 
exemption, you should file a Wisconsin income tax return (Form 1NPR), during the regular filing season, 
requesting a refund of the withheld taxes. 
 
If you have questions, call (608) 266-2486 or e-mail dorincome@wisconsin.gov. 
 
Instructions for Employer 
 
If an employee completes Parts I, II, and IV, the employer should not withhold Wisconsin income tax from the 
employee's wages. If an employee completes Parts I, III, and IV, the employer should withhold the appropriate 
amount of Wisconsin income tax from the employee's wages. 
 
W-223 (N. 10-24) 
 

                                    Form W-221 Instructions 

After an employer receives Form W-221 from an employee, the employer must complete Part V and send a 
copy of the form to the department: 
 
Mail:  MS 5-144, Office Services 
       Wisconsin Department of Revenue 
       PO Box 8906 
       Madison, WI 53708-8906 
 
Fax: (608) 267-0834 
 
Wages paid to the employee for services performed in Wisconsin must be reported as taxable to Wisconsin 
(box 16 of Form W-2), unless the employee claims to be a resident of Illinois, Indiana, Kentucky, or Michigan. 
 
If employers have questions, they can call (608) 266-2776 or e-mail dorwithholdingtax@wisconsin.gov. 
 
Example: 
Facts: 
 •  Prior to 2024 
       o  Individual A is a resident of Illinois. 
       o  Individual B is a resident of Florida. 
 •  On January 1, 2024 
       o  Individual A becomes a servicemember. 
       o  Individual A receives military orders with a permanent duty station in Wisconsin. 
 •  On October 7, 2024 
       o  Individual A and Individual B get married. 
       o  Individual B moves to Wisconsin solely to be with Individual A. 
 •  On November 6, 2024, Individual B starts working in Wisconsin for Employer C. 

Under 50  U.S.C.  4001(a)(3),  Individual  B  can  choose  to  be  a  resident  of  Florida, Illinois,  or Wisconsin. 
Individual B's choice will affect the tax, withholding, and reporting requirements for both Individual B and 
Employer C. 

Option 1 – Individual B chooses to be a resident of Wisconsin. 
 •  Individual B does not need to complete Form W-221. 
 •  Employer C 
       o  Must withhold the appropriate amount of Wisconsin income tax from Individual B's wages. 
       o  Must report the wages as taxable to Wisconsin in box 16 of Form W-2. 
       o  Must file Form W-2 with the department. 
 •  When Individual B files the  2024  Wisconsin individual income tax  return, all of the wages from 
       Employer C are taxable to Wisconsin. 
 
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                                   Form W-221 Instructions 

Option 2 – Individual B chooses to be a resident of Florida. 
 •  Individual B should complete Parts I, II, and IV of Form W-221 and give it to Employer C. 
 •  Employer C 
  o  Must complete Part V of Form W-221 and give it to the department. 
  o  Should not withhold Wisconsin income tax from Individual B's wages. 
  o  Must report the wages paid to Individual B as taxable to Wisconsin in box 16 of Form W-2. 
  o  Must file Form W-2 with the department. 
 •  However, when Individual B files the 2024 Wisconsin individual income tax return, none of the wages 
  from Employer C are taxable to Wisconsin. 
Option 3 – Individual B chooses to be a resident of Illinois. 
 •  Individual B should complete Parts I, II, and IV of Form W-221 and give it to Employer C. 
 •  Individual B should complete Form W-220 and give it to Employer C. 
 •  Employer C 
  o  Must complete Part V of Form W-221 and give it to the department. 
  o  Should not withhold Wisconsin income tax from Individual B's wages. 
  o  Should not report the wages paid to Individual B as taxable to Wisconsin in box 16 of Form W-2 
   (because Illinois has a reciprocity agreement with Wisconsin). 
  o  Must file Form W-2 with the department. 
 •  When Individual B files the 2024 Wisconsin individual income tax return, none of the wages from 
  Employer C are taxable to Wisconsin. 
 
                        Applicable Laws and Rules 

  This document provides statements or interpretations of the following laws and regulations in effect 
  as  of  October  6, 2023:  Servicemembers Civil Relief Act  (P.L. 108-189),  Military  Spouses 
  Residency Relief Act (P.L. 111-97), Veterans Benefits and Transition Act of 2018 (P.L. 115-407), 
  Veterans Auto and Education Improvement Act of 2022 (P.L. 117-333), and 50 U.S.C. 4001. 
                                                                                                        
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