Instructions for 2024 Schedule CU-1 
                    Credit Union Adjustment to Income

Purpose of Schedule CU-1 

The purpose of Schedule CU-1 is to allow credit unions acting as public depositories for state or local government 
funds to adjust their income so Wisconsin taxable income excludes net income earned from non-public deposits.  

A credit union that is required to file a Wisconsin franchise or income tax return files Schedule CU-1 with Form 4 or 
Form 6. 

Special Instructions for Combined Groups 

Combined groups should prepare Schedule CU-1 separately for each member of the group that is a credit union and 
is otherwise required to file a Wisconsin franchise or income tax return. Complete Schedule CU-1 on a separate entity 
basis for each applicable group member.  

Before You Complete Schedule CU-1 

The starting point for computing Wisconsin net income is federal taxable.  Credit unions aren’t required to file federal 
Form 1120 determine their starting point by either (1) completing a pro forma Form 1120, or (2) using the net income 
(loss) from the NCUA Form 5300, 2024 Year end Call Report. You must file either the pro forma Form 1120 or the 
NCUA Form 5300, whichever you are using, with Form 4 or Form 6. 

If you are filing a non-combined Wisconsin return, enter on Form 4, line 1 the amount from either the pro forma Form 
1120 or the NCUA Form 5300, as applicable. If the credit union is a member of a combined group, include this amount 
in the members’ federal taxable incomes you report on Form 6.  

For non-combined filers: Adjust the amount you reported on Form 4, line 1 to account for Wisconsin addition and 
subtraction modifications. Compute these modifications on Schedules 4V and 4W, as appropriate, but do not enter 
the amount from Schedule 4W on Form 4, line 4 until you have completed Schedule CU-1. This is because you will 
include the amount from line 9 of Schedule CU-1 (whether positive or negative) on Schedule 4W, line 15, other 
subtractions.    

For combined filers: Adjust the amount you reported on Form 6, Part II, line 1 to account for Wisconsin addition and 
subtraction modifications. Compute these modifications on Form 6, Part II, lines 2 and 4, as appropriate, but do not 
enter an amount on Form 6, Part II, line 4n until you have completed Schedule CU-1. This is because you will include 
the amount from line 9 of Schedule CU-1 (whether positive or negative) on Form 6, Part II, line 4n, other subtractions.   

Line-by-Line Instructions                  

These instructions are presented in the order the lines appear on Schedule CU-1: 
 
Part I: Percentage of Income Earned from Public and Non-Public Deposits 

■ Lines 1a through 1m. Deposits on Hand – Enter on line 1a the deposits on hand on January 1, 2024, and on 
lines 1b through 1m the deposits on hand at the end of each month in 2024. Enter public deposits in column A and 
total deposits in column B. Enter zero (0) in column A for each month in which no public deposits were held. 

■ Line 1n. Totals – Enter on line 1n the totals of lines 1a through 1m for both columns A and B. 

■ Line 2. Monthly Average – Divide the amounts on line 1n by 13 and enter the results on line 2 for both columns 
A and B. 

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                                              2024 Schedule CU-1 Instructions 
 
■ Line 3a. Percentage of Public Deposits – Divide the amount on line 2, column A, by the amount on line 2, column 
B, and multiply by 100. Fill all spaces to the right of the decimal point. Round to the nearest ten-thousandth of a 
percent (for example, 12.3456%).  

■ Line 3b. Percentage of Non-Public Deposits – Subtract the percentage on line 3a from 100%. Fill all spaces to 
the right of the decimal point. 
 
Part II: Adjustment for Income Earned from Non-Public Deposits 
 
Expenses related to exempt income from non-public deposits are nondeductible. The adjustment you compute in 
Part II must be net of all expenses directly and indirectly related to the income from non-public deposits. You may 
compute this adjustment using the shortcut method or the regular method.  

Under the shortcut method, all expenses, whether direct or indirect, are allocated based on the ratio of public deposits 
to non-public deposits. If you are using the shortcut method, complete only lines 4 and 9 of Part II. If you are using 
the regular method, complete all of lines 4 through 9 of Part II. 

■ Line 4. Credit Union’s Modified Net Income – Enter the credit union’s income or loss as reported on Form 4, line 
1, plus its total addition modifications from Schedule 4V and minus its subtraction modifications from lines 1 through 
15h of Schedule 4W (since you will enter your total from Schedule CU-1 on Schedule 4W, your total on Schedule 4W 
will not yet be complete).  

If the credit union is a member of a combined group, enter the credit union’s net income or loss included in the amount 
reported on Form 6, Part II, line 1, and only adjust the credit union’s net income or loss for addition and subtraction 
modifications that are attributable to the credit union.   

■ Line 5. Expenses Directly Related to Income from All Deposits – Enter the total expenses directly related to 
income from deposits. Include expenses directly related to income from public deposits and expenses directly related 
to income from non-public deposits.  

■ Line 8. Expenses Directly Related to Income from Non-Public Deposits –      Enter the total expenses directly 
related to income from non-public deposits. Do not include any indirect expenses or expenses related directly to 
income from public deposits.  

■ Line 9. Total Adjustment to Income – For non-combined filers: If the net income from non-public deposits is a 
loss amount, enter the loss on line 9 as a negative number and also as a      negative number on Schedule 4W, line 
15. The loss from non-public deposits is an addition to federal income even though it is reported along with the 
subtractions on Schedule 4W.   

For combined group filers: If the net income from non-public deposits is a loss amount, enter the loss on line 9 as a 
negative number and also as a negative number on Form 6, Part II, line 4n. The loss from non-public deposits is an 
addition to federal income even though it is reported along with the subtractions on Form 6, Part II, line 4.   

Additional Information and Assistance 

Web Resources  

The Department of Revenue’s web page, available at         revenue.wi.gov, has a number of resources to provide addi-
tional information and assistance, including: 

• Related forms and their instructions  
•  Common Questions  
• Publications on specific tax topics 
• The Wisconsin Tax Bulletin      
 
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                                 2024 Schedule CU-1 Instructions 
 
•   A home page specifically for combined reporting topics 
•   Links to the Wisconsin Statutes and Administrative Code 
•   

Contact Information  

If you cannot find the answer to your question in the resources available on the Department of Revenue’s web page, 
contact the Department using any of the following methods: 

•   E-mail your question to: DORFranchise@wisconsin.gov 
•   Call (608) 266-2772  
    (Telephone help is also available using TTY equipment. Call the Wisconsin Telecommunications Relay System 
    at 711 or, if no answer, (800) 947-3529. These numbers are to be used only when calling with TTY equipment.) 
•   Send a fax to (608) 267-0834 
•   Write to the Audit Bureau, Wisconsin Department of Revenue, Mail Stop 3-107, PO Box 8906, Madison, WI  
    53708-8906 
 
                                 Applicable Laws and Rules 
  This document provides statements or interpretations of the following laws and regulations enacted as of the re-
  vised date: Chapter 71 Wis. Stats., and Chapter Tax 2, Wis. Adm. Code 
                                                           
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