Instructions for 2023 Schedule ES 
                                                         
Purpose of Schedule ES 
 
Use Schedule ES to claim the non-refundable employee college savings account contribution tax credit. 
 
Who is Eligible to Claim the Credit 
 
A partner of a partnership, a member of a limited liability company (LLC), a corporation, or a shareholder of a tax-
option (S) corporation that is an employer and contributes to an employee's college savings account is eligible for 
the credit.  Federal Schedule C employers and estate and trusts are not eligible to compute the credit. 
 
Partnerships, limited liability companies, and tax−option corporations may not claim the credit, but the eligibility 
and amount of the credit are based on the amount they paid into a college savings account owned by the employee 
in the taxable year the contribution is made. A partnership, limited liability company, or tax−option corporation 
computes the amount of credit that each of its partners, members, or shareholders may claim and provides that 
information to them. Partners, members of limited liability companies, and shareholders of tax−option corporations 
may claim the credit in proportion to their ownership interests. 
 
Definitions 
 
• “Claimant” means an individual who files a claim under this subsection and who is a partner of a partnership, 
  member of a limited liability company, or shareholder of a tax−option corporation that is an employer and that 
  contributes to an employee’s college savings account under par. (b). 
• “College savings account” means a college savings account, as described in sec. 224.50, Wis. Stats. 
• “Employee” has the meaning given in sec. 71.63 (2), Wis. Stats. 
• “Employer” means an employer that is a partnership, as defined in sec. 71.195, Wis. Stats.,, or a tax−option 
  corporation, as defined in sec. 71.34 (2), Wis. Stats. 
 
Credit Computation 
 
The credit may be computed for each employee of the employer equal to the amount the employer paid into a 
college savings account owned by the employee in the taxable year in which the contribution is made.   
 
The maximum contribution to the employees college savings account is equal to 25 percent of the maximum 
amount that an individual contributor may deduct under sec. 71.05(6)(b)32.a., Wis. Stats., per beneficiary ($3,860 
X 25% = $965; $1,930 X 25% = $483 if married filing separately or a divorced parent). 
 
The  maximum credit  per  employee  is equal to 25  percent of the  amount the  employer contributed to the 
employee’s college savings account, subject to the maximum contribution limitation above.   
 
The credit must be claimed within four years of the unextended due date of your return. 
 
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                               2023 Schedule ES Instructions 

Complete the following worksheet (separately for each employee) that you made contributions to a college savings 
account owned by the employee: 

  1  Enter contributions made in 2023 to your employees' college savings account, 
  but do not enter more than $3,860 ($1,930 if married filing separate or a  
  divorced parent)……………………………………………………………………….1 _______________.00 
  2  Enter $965 ($483 if married filing separate or a divorced parent)………………..2 _______________.00 
  3  Enter the smaller of line 1 or line 2. This is the maximum contribution eligible 
  for the credit…………………………………………………………… ……..……….3 _______________.00 
  4  Multiply line 3 by 25% (.25). This is the allowable credit………………….. ……..4 _______________.00 
 
Enter the total from line 4 of all worksheets on Schedule ES, line 2. 
 
Credit is Income 
 
The credit you compute on Schedule ES is income and must be reported on your Wisconsin franchise or income 
tax return in the year the credit was computed. This is true even if you cannot use the full amount of the credit 
computed this year to offset tax liability for this year and must carry part or all of it forward to future years.   
 
Carryforward of Unused Credits 
 
The employee college savings account contribution credit is nonrefundable. Any unused credit may be carried 
forward for up to 15 years.  
 
If there is a reorganization of a corporation claiming the credit, the limitations provided by Internal Revenue Code 
(IRC) section 383 may apply to the carryover of any unused credit. 
 
Specific Instructions 
 
Line 1:  Enter the number of employees that you made eligible college savings account contribution credits for 
during the taxable year. 
 
Line 2:  Enter the total credit computed for all employees from the total of all worksheets above.   
 
Line 3:  If applicable, fill in the entity name, Federal Employer Identification Number (FEIN), and the amount of 
employee college savings account  contribution  credit passed through from tax-option (S) corporations (from 
Schedule 5K-1) and partnerships and LLCs treated as partnerships (from Schedule 3K-1). 
 
Line 4:  Add lines 2 and 3d.  This is the 2023 employee college savings account contribution credit.   
 
Line 5:  Enter the amount of employee college savings account contribution credit that was not previously used 
and has not expired. Include Schedule CF with your tax return.  
 
Line 6:  Add lines 4 and 5.  This is the available employee college savings account contribution credit.  Enter the 
amount of credit from line 6 on the appropriate line of Schedule CR.  See the following exceptions: 
 
• If the claimant is a combined group member, enter the amount of credit on Form 6, Part V, line 1 instead of 
  Schedule CR. 

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                                2023 Schedule ES Instructions 

• Tax-option (S) corporations, partnerships, and LLCs treated as partnerships should prorate the amount of 
  credit on line 4 among the shareholders, partners, or members based on their ownership interest. Show the 
  credit for each shareholder on Schedule 5K-1 and for each partner or member on Schedule 3K-1.   
 
Required Attachments to Returns 
 
• For claimants not receiving the credit passed through from a partnership, tax-option(S) corporation, or limited 
  liability company:  
  o  The only documentation you are required to include with your tax return is Wisconsin Schedule ES.  
 
• For claimants receiving the credit passed through from a partnership, tax-option (S) corporation, or limited 
  liability company:  
  o  Submit Wisconsin Schedule ES and,  
  o  A copy of the Wisconsin Schedule 3K-1 and/or Schedule 5K-1.  
 
Additional Information 
 
For more information, you may: 
 
• E-mail your question to: DORFranchise@wisconsin.gov 
• Call (608) 266-2772 [TTY: Call the Wisconsin Telecommunications Relay System at 711. If no answer, dial 
  1-800-947-3529] 
• Send a FAX to (608) 267-0834 

                                Applicable Laws and Rules 
  This document provides statements  or interpretations of the following laws and regulations  enacted  as of 
  December 1, 2023:  Chapter 71 Wis. Stats. 

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