Extracted from PDF file 2023-connecticut-tax-instruction-booklet.pdf, last modified December 2023Form CT-1040 Instruction Booklet
Department of Revenue Services State of Connecticut (Rev. 12/23) Form CT-1040 Connecticut Resident Income Tax Return Instructions For additional information on the Connecticut Income Tax, visit portal.ct.gov/DRS/Individuals/Resident-Income-Tax/Tax-Information. Before you begin, gather all your records, including all your federal Forms W‑2 and 1099, and your completed federal income tax return. You will need the information on your federal return to complete your Connecticut return. 1 Taxpayer Information Filing Status - Check only one box. Check the appropriate box to indicate your filing status. Generally, your filing status on your Connecticut return must match your federal income tax filing status. If you are not certain of your filing status for 2023, consult the information in your federal income tax booklet or call the IRS at 800‑829‑1040. There are certain situations where you and your spouse may be required to file separate Connecticut returns even though you file jointly for federal purposes. See Special Rules for Married Individuals, below. If your filing status is qualifying surviving spouse on federal Form 1040, or federal Form 1040‑SR, do not enter your deceased spouse’s name or SSN in the spaces provided for spouse’s name and spouse’s SSN on Form CT‑1040. Special Rules for Married Individuals When one spouse is a Connecticut resident or a nonresident and the other spouse is a part-year resident, each spouse who is required to file a Connecticut income tax return must file as married filing separately. When one spouse is a Connecticut resident and the other is a nonresident, each spouse who is required to file a Connecticut income tax return must file as married filing separately unless they: • File jointly for federal income tax purposes; and • Elect to be treated as if both were Connecticut residents for the entire taxable year. When both spouses are part‑year residents of Connecticut but do not have the same period of residency, married filing separately is their Connecticut income tax filing status. When both spouses are part‑year residents of Connecticut and have the same period of residency, they may choose married filing jointly or married filing separately as their Connecticut income tax filing status. When both spouses are nonresidents of Connecticut and only one has income derived from or connected with sources within Connecticut, only that spouse is required to file a Connecticut income tax return and that spouse’s Connecticut income tax filing status is married filing separately for Connecticut unless they both elect to file a joint 2023 Connecticut income tax return. If an election is made, married filing jointly is their Connecticut income tax filing status. When one spouse is a nonresident alien and the other is a citizen or resident of the United States, each spouse who is required to file a Connecticut income tax return must file as married filing separately unless: • An election is made by the nonresident alien and his or her spouse to file a joint federal income tax return; • A married filing joint return is filed for federal income tax purposes; and • The spouses are otherwise required or permitted to file a joint Connecticut income tax return. The election to file a joint return means the joint federal adjusted gross income must be used on Form CT‑1040, Line 1. It also means the spouse who would not otherwise be required to file is now jointly and severally liable for any tax liability associated with the filing of the income tax return. If you are filing a joint federal return with your spouse but are required to file a separate Connecticut return, each of you will have to recompute your federal adjusted gross income as if you were each filing as married filing separately for federal income tax purposes. Enter on Form CT‑1040, Line 1, your income as recalculated. Social Security Number, Name, and Address You must write your Social Security Number (SSN), name, and address in the space provided. If your city or town of residence is different from your mailing address enter the additional information in the space provided. Indicate a country code when filing your Connecticut income tax return. If your mailing address is in the United States, enter “USA.” The full list of country codes is available at portal.ct.gov/DRS-countrycodes. If you file a joint return, enter your SSN and your spouse’s SSN in the order they appear on your federal return. If the taxpayer is deceased, see Deceased Taxpayers at portal.ct.gov/DRS/Individuals/ Resident-Income-Tax/Tax-Information. If you are a nonresident alien and do not have an SSN, enter your Individual Taxpayer Identification Number (ITIN) in the space provided above your name. Nonresident aliens who have applied for an ITIN from the Internal Revenue Service by filing federal Form W‑7, but have not received the ITIN, must wait for the ITIN to be issued before filing their Connecticut tax return. However, if you have not received your ITIN by April 15, file your return without the ITIN, enter Applied For or NRA in the SSN field, pay the tax due, and attach a copy of the federal Form W‑7. The Department of Revenue Services (DRS) will contact you upon receipt of your return. DRS will hold your return until you receive your ITIN and you forward the information to us. DRS cannot process your return until we receive the ITIN. See Special Information for Nonresident Aliens at portal.ct.gov/DRS/Individuals/ Resident-Income-Tax/Tax-Information. 2 Calculate Your Tax Line 1: Federal Adjusted Gross Income Enter your federal adjusted gross income from your 2023 federal income tax return. This is the amount reported on federal Form 1040, Line 11, or federal Form 1040‑SR, Line 11. Nonresident aliens, see Special Information for Nonresident Aliens at portal.ct.gov/DRS/Individuals/Resident-Income-Tax/ Tax-Information. Line 2: Additions Enter the amount from Form CT‑1040, Schedule 1, Line 38. See Additions to Federal Adjusted Gross Income on Page 7. Line 3 Add Line 1 and Line 2 and enter the total. Line 4: Subtractions Enter the amount from Form CT‑1040, Schedule 1, Line 50. See Subtractions From Federal Adjusted Gross Income on Page 8. Line 5: Connecticut Adjusted Gross Income Subtract Line 4 from Line 3 and enter the result. This is your Connecticut adjusted gross income. Line 6: Income Tax For each filing status, if the amount on Line 5 is: $12,000 or less for married filing separately; $15,000 or less for single; $19,000 or less for head of household; or $24,000 or less for married filing jointly, or qualifying surviving spouse, enter “0” on Line 6. You do not owe any income tax. Otherwise, calculate your tax using one of the following methods. If your Connecticut adjusted gross income is less than or equal to $102,000, you may use the Tax Tables on the DRS website at portal.ct.gov/DRS/DRS-Forms/Current-Year-Forms/ Calculators-and-Tables. If your Connecticut adjusted gross income is more than $102,000, you may: 1. Calculate your tax liability instantly by visiting myconneCT at portal.ct.gov/DRS-myconneCT. Below the Individuals panel on the myconneCT homepage, select View Tax Calculators, then select Income Tax Calculator; or 2. Use the Tax Calculation Schedule beginning on Page 19. After you have found the calculated tax, enter that amount on Line 6. Line 7: Credit for Income Taxes Paid to Qualifying Jurisdictions If all or part of the income reported on this return is subject to income tax in a qualifying jurisdiction and you have filed a return and paid income taxes to that jurisdiction, complete Form CT‑1040, Schedule 2, and enter the amount from Line 59 here. See Schedule 2 - Credit for Income Taxes Paid to Qualifying Jurisdictions on Page 11. You must attach a copy of your return filed with the qualifying jurisdiction(s) or the credit will be disallowed. If Form CT-1040 Instructions (Rev. 12/23) filing your return electronically, you must keep a copy of the return filed with the qualifying jurisdiction(s) and provide a copy if requested by DRS. Line 8 Subtract Line 7 from Line 6 and enter the result. If Line 7 is greater than Line 6, enter “0.” Line 9: Connecticut Alternative Minimum Tax If you were required to pay the federal alternative minimum tax for 2023, you must file Form CT‑6251, Connecticut Alternative Minimum Tax Return - Individuals. Enter the amount shown on Form CT‑6251, Line 23. Line 10 Add Line 8 and Line 9 and enter the total. Line 11: Credit for Property Taxes Paid on Your Primary Residence, Motor Vehicle, or Both If Line 10 is zero, skip Line 11 and Line 12 and go to Line 13. Otherwise, complete and attach Schedule 3 on Page 4 of Form CT‑1040 to be allowed this credit. Enter the amount from Line 68 on Line 11. Be certain to include all of the requested information or your credit may be denied. See Schedule 3 Property Tax Credit on Page 13. You may also use the online Property Tax Credit Calculator by visiting myconneCT at portal.ct.gov/DRS-myconneCT. Below the Individuals panel on the myconneCT homepage, select View Tax Calculators, then select Property Tax Credit Calculator. If you choose to use the online calculator, you must complete Lines 60 through 63 of Schedule 3, Property Tax Credit found on Form CT‑1040, Page 4 or your credit will be denied. The credit is limited to Connecticut residents who paid qualifying property tax on their residence and/or motor vehicle. The maximum property tax credit allowed is $300 per return regardless of filing status. See Property Tax Credit Table on Page 26. This credit can be used to offset only your 2023 income tax. You may not carry this credit forward and it is not refundable. Line 12 Subtract Line 11 from Line 10 and enter the result. If less than zero, enter “0.” Line 13: Allowable Credits Enter the amount from Schedule CT‑IT Credit, Income Tax Credit Summary, Part 1, Line 11. Use Schedule CT‑IT Credit to claim the Angel Investor Tax Credit, the Birth of a Stillborn Child Tax Credit, or to claim the credit for a prior year alternative minimum tax from Form CT‑8801, Credit for Prior Year Connecticut Minimum Tax for Individuals, Trusts, and Estates. Do not use Schedule CT‑IT Credit to report any PE Tax Credit. If you have any PE Tax Credit, use Schedule CT‑PE, Pass‑Through Entity Tax Credit. Page 2 of 27 Line 14: Connecticut Income Tax Subtract Line 13 from Line 12 and enter the result. If less than zero, enter “0.” Line 15: Individual Use Tax Complete the Connecticut Individual Use Tax Worksheet on Page 27, then complete and attach Schedule 4 on Page 4 of Form CT‑1040. Enter on Line 15 the total use tax due as reported on Schedule 4, Line 69. You must enter “0” if no Connecticut use tax is due; otherwise you have not filed a use tax return. Failure to report use tax due on Line 15 and include that amount in Line 16 may subject you to a penalty of up to $5,000, imprisonment for up to 5 years, or both. See Page 15 for more information on the use tax. Line 16 and Line 17 Add Line 14 and Line 15. Enter the total on Line 16 and Line 17. Payments 3 Line 18: Connecticut Tax Withheld For each federal Form W‑2 or 1099 where Connecticut income tax was withheld, enter the following on Lines 18a through 18e. Enter the number from Box b in Column A of Form CT -1040. 2023 22222 a Employee’s social security number OMB No. 1545-0008 1 Wages, tips, other compensation 2 Federal income tax withheld b Employer identification number (EIN) XX-XXXXXXX c Employer's name, address, and ZIP code D Control number e Employee's first name and initial Last name Suff. 3 Social security wages 4 Social security tax withheld 5 Medicare wages and tips 6 Medicare tax withheld 7 Social security tips 8 Allocated tips 9 10 Dependent care benefits 11 Nonqualified plans 12a C o d e Enter the amount from Box 16 in Column B of Form CT -1040. 13 Statutory employee Retirement plan Third-party sick pay 12b C o d e 14 Other 12c C o d e 12d C o d e f Employee’s address and ZIP code 15 State Employer's state ID number CT Form Copy 1 16 State wages, tips, etc. 17 State income tax 18 Local wages, tips, etc. 19 Local income tax XXX.00 and Tax Statement W-2 Wage XXX.00 2023 For State, City , or Local Tax Department Box 15 must show CT to be claimed as Connecticut withholding. 20 Locality name Department of the Treasury - Internal Revenue Service Enter the amount from Box 17 (in whole dollars) in Column C of Form CT -1040. Column A: Enter the Employer Identification Number or Payer Identification Number. Column B: Enter the amount of Connecticut wages, tips, etc. Column C: Enter the amount of Connecticut income tax withheld. You must complete all columns or your Connecticut withholding will be disallowed. Do not include tax withheld for other states or federal income tax withholding. Form CT-1040 Instructions (Rev. 12/23) If you have more than five federal Forms W‑2 or 1099 showing Connecticut income tax withheld, you must complete and attach Supplemental Schedule CT‑1040WH, Connecticut Income Tax Withholding. Enter on Supplemental Schedule CT‑1040WH only Connecticut income tax withholding amounts not previously reported on Form CT‑1040. Enter the total from Supplemental Schedule CT‑1040WH, Line 3, on Line 18f, Column C. Add all entries in Column C (including the additional amount from Supplemental Schedule CT‑1040WH) and enter the total Connecticut income tax withheld on Line 18. Do not send copies of Forms W‑2 or 1099. Keep these for your records. DRS may request them at a later date. When filing Form CT‑8379, Nonobligated Spouse Claim, attach all Forms W‑2 and 1099, and Schedules CT K‑1 and CT‑1041 K‑1. Line 19: All 2023 Estimated Tax Payments Enter the total of all Connecticut estimated tax payments, advance tax payments, and any overpayments of Connecticut income tax applied from a prior year. Include any 2023 estimated payments made in 2024. Do not include any refunds received. Line 20: Payments Made With Form CT-1040 EXT If you filed Form CT‑1040 EXT, Application for Extension of Time to File, enter the amount you paid with that form. Line 20a: Connecticut Earned Income Tax Credit A Connecticut resident taxpayer may claim an earned income tax credit (CT EITC) against the Connecticut income tax due for the taxable year. The amount of the CT EITC is 40% of the earned income credit claimed and allowed on the federal income tax return for the same taxable year. If the CT EITC exceeds the taxpayer’s Connecticut income tax liability, the excess is considered an overpayment and will be refunded without interest. Complete Schedule CT‑EITC, Connecticut Earned Income Tax Credit, to calculate your earned income tax credit. Enter the amount from Schedule CT‑EITC, Line 16. You must attach a copy of your schedule or the credit will be disallowed. Line 20b: Claim of Right Credit If you have claim of right income for federal tax purposes and are claiming the federal claim of right credit on your 2023 federal return, you may also be entitled to a claim of right credit for Connecticut income tax purposes. If during your 2023 taxable year you had to repay income you included in your Connecticut adjusted gross income for an earlier taxable year, and the amount you repaid is more than $3,000, you may be able to claim a credit against your Connecticut income tax for your 2023 taxable year. If you are eligible for the Connecticut claim of right credit, complete Form CT‑1040 CRC, Claim of Right Credit, to claim a credit equal to the Connecticut income tax you would not have had to pay if the repaid amount had not been included in your Connecticut adjusted gross income in the earlier taxable year. Page 3 of 27 You are eligible for the Connecticut claim of right credit if you meet all of the following conditions: • You were a resident, nonresident, or part-year resident individual who included income in Connecticut adjusted gross income for an earlier taxable year(s) of receipt. A trust or estate is not eligible to claim relief for Connecticut income tax purposes; • You were required to repay the income during your 2023 taxable year (year of repayment); • The amount of the repayment exceeds $3,000; and • You determined your federal income tax liability for the year of repayment under IRC § 1341(a)(4) (see Exceptions) or IRC § 1341(a)(5). If the claim of right credit exceeds your Connecticut income tax liability, the excess is considered an overpayment and will be refunded. Complete Form CT-1040 CRC, Claim of Right Credit, to calculate your claim of right credit. Enter the amount from Form CT-1040 CRC, Line 6. Line 20c: Pass-Through Entity Tax Credit If you are a partner or a member of a PE required to pay the Connecticut PE Tax, or if you are a beneficiary of a trust or estate that is a member of such PE, and you receive a Schedule CT K‑1 or a Schedule CT‑1041 K‑1 reporting an amount of PE Tax Credit, then you must complete Schedule CT‑PE, Pass‑Through Entity Tax Credit. Enter the amount from Schedule CT‑PE, Line 1. You must attach a copy of Schedule CT‑PE or the credit will be disallowed. Do not send copies of Schedules CT K‑1 and CT‑1041 K‑1, but keep them for your records. DRS may request them at a later date. Line 21: Total Payments and Refundable Credits Add Lines 18, 19, 20, 20a, 20b, and 20c and enter the total. This is the total of your Connecticut tax payments and refundable credits. 4 Overpayment No. 101 Date Pay to the Order of $ Name of your Bank Street Address City, State, Zip Code 092125789 Routing Number 091 025 025413 0101 Form CT-1040 Instructions (Rev. 12/23) Name of Depositor Street Address City, State, Zip Code Line 22: Overpayment If Line 21 is greater than Line 17, subtract Line 17 from Line 21 and enter the result. This is your overpayment. To properly allocate your overpayment, go to Lines 23 through 25. If Line 21 is less than Line 17, you have an amount due. Go to Line 26. If you were required to make estimated income tax payments, but you did not pay enough tax through withholding, estimated payments, or both, by any installment due date, or if any PE Tax Credit reported to you on Schedule CT K‑1, Part 3, Line 1, or Schedule CT‑1041 K‑1, Part 4, Line 1, is not sufficient to cover your tax liability, your overpayment may be reduced by the interest due on the underpayment of estimated tax. See Form CT‑2210, Underpayment of Estimated Income Tax by Individuals, Trusts, and Estates. Line 23: Amount of Line 22 You Want Applied to Your 2024 Estimated Tax Enter the amount of your 2023 overpayment you want applied to your 2024 estimated Connecticut income tax. It will be treated as estimated tax paid on April 15, 2024, if your return is filed on time or if you filed a timely request for extension and your return is filed within the extension period. Payments received after April 15, 2024, will be applied as of the date of receipt. Your request to apply this amount to your 2024 estimated income tax is irrevocable. Line 24: CHET Contribution from Schedule CT-CHET Complete and attach Schedule CT‑CHET, Connecticut Higher Education Trust (CHET) 529 College Savings Plan Contribution, to contribute all or part of your Connecticut individual income tax overpayment (Line 22) to a CHET 529 College Savings Plan Account(s). Enter the total contributions as reported on Schedule CT‑CHET, Line 4. Your contribution is irrevocable. Line 24a: Total Contributions to Designated Charities You may make a contribution on this return only if you are entitled to a refund of an overpayment. Your contribution is limited to your refund amount. Complete and attach Schedule 5 on Page 4 of Form CT‑1040. Enter the total contributions as reported on Schedule 5, Line 70. Your contribution is irrevocable. You may also make direct contributions by following the instructions on Page 18. Line 25: Refund Subtract Lines 23, 24, and 24a from Line 22 and enter the result. This is the amount of your refund. There are two refund options available: Option 1: Direct Deposit Complete Lines 25a, 25b, and 25c to have your refund directly deposited into your checking or savings account. See Refund Information at portal.ct.gov/DRS/Individuals/ResidentIncome-Tax/Tax-Information. This option is not available to first-time filers. Enter your nine-digit bank routing number and your bank account number on Lines 25b and 25c. Your bank routing number is generally the first nine‑digit number printed on your check or savings withdrawal slip. Your bank account number generally follows the bank routing number. Do not include the check number as part of your account number. Bank account numbers can be up to 17 characters. Account Number Page 4 of 27 Federal banking rules require DRS to inquire whether the direct deposit request is to a foreign bank account. If it is, DRS will issue your refund by check. Option 2: Paper Check If you do not elect or qualify for direct deposit, a refund check will be issued and refund processing may be delayed. Your overpayment will be applied in the following order: penalty and interest you owe DRS; other taxes you owe DRS; debts to other Connecticut state agencies; federal taxes you owe the IRS; taxes you owe to other states; amounts designated by you to be applied to your 2024 estimated tax; CHET contributions; and charitable contributions designated by you. Any remaining balance will be refunded to you. If you file a joint return, you must review the information with your spouse. When both you and your spouse sign the return, you become jointly and severally responsible for paying the full amount of tax, interest, and penalties due. In addition, you and your spouse will be jointly entitled to any refund which will be issued to both names listed on the return. 5 Amount You Owe Paid Preparer Signature Anyone you pay to prepare your return must sign and date it. Paid preparers must also enter their Preparer Tax Identification Number (PTIN), and their firm’s Federal Employer Identification Number (FEIN) in the spaces provided. Line 26: Tax Due If Line 17 is greater than Line 21, subtract Line 21 from Line 17 and enter the result. This is the amount of tax you owe. Line 27: Penalty for Late Payment or Late Filing Late Payment Penalty: The penalty for late payment or underpayment of income or use tax is 10% of the amount due. See Penalty for Late Payment or Late Filing at portal.ct.gov/ DRS/Individuals/Resident-Income-Tax/Tax-Information. Late Filing Penalty: In the event that no tax is due, DRS may impose a $50 penalty for the late filing of any return or report required by law to be filed. Line 28: Interest for Late Payment or Late Filing If you fail to pay the tax when due, interest will be charged at 1% per month or fraction of a month from the due date until payment is made. Line 29: Interest on Underpayment of Estimated Tax If Line 14 minus Line 18 and Line 20c is $1,000 or more, you may owe interest on estimated tax you either underpaid or paid late. Form CT‑2210, Underpayment of Estimated Income Tax by Individuals, Trusts and Estates, can help you determine whether you did underestimate and will help you calculate interest. However, this is a complex form and you may prefer to have DRS calculate the interest. If so, do not file Form CT‑2210; leave this line blank and DRS will send you a bill. Interest on underpayment of estimated income tax stops accruing on the earlier of the day you pay your tax or April 15, 2024. Line 30: Total Amount Due Add Lines 26 through 29 and enter the total. This is the total amount you owe. Pay the amount in full with your return. See Payment Options at portal.ct.gov/DRS/Individuals/ Resident-Income-Tax/Tax-Information. 6 Sign Your Return After you complete Form CT‑1040, sign your name and write the date you signed the return. Your spouse must also sign and enter the date if this is a joint return. The signature line is on Page 2 of Form CT‑1040. Form CT-1040 Instructions (Rev. 12/23) Taxpayer’s Email Address DRS tax returns have a line for taxpayers to enter their email address. If you provide an email address, DRS may use it to notify you of tax changes. However, DRS will never use email to ask for sensitive information, such as your Social Security Number. If you ever have questions about an email claiming to be from DRS, contact DRS directly. Alternative Signature Methods DRS conforms to IRS Notice 2004‑54, which provides for alternative preparer signature procedures for federal income tax paper returns that paid practitioners prepare on behalf of their clients. Specifically, income tax return preparers may sign original returns, amended returns, or requests for filing extensions by rubber stamp, mechanical device, or computer software program. These alternative methods of signing must include either a facsimile of the individual preparer’s signature or the individual preparer’s printed name. Income tax return preparers who use alternative methods of signing must provide all of the other preparer information that is required on returns and extensions, such as the name, address, relevant employer identification number, the preparer’s tax preparer tax identification number (PTIN), and phone number. Paid preparers can follow the same procedure with respect to paper Connecticut income tax returns prepared on behalf of their clients. This procedure only applies to preparers’ signatures. It does not affect other signature requirements for taxpayers, and does not apply to documents other than tax returns. Third Party Designee To authorize DRS to contact your friend, family member, or any other person to discuss your 2023 tax return, enter the designee’s name, telephone number, and any five numbers the designee chooses as his or her personal identification number (PIN). To authorize DRS to contact the paid preparer who signed your return, enter “Preparer” in the space for the designee’s name. You do not have to provide the other information requested. Page 5 of 27 If you enter a designee’s name, you and your spouse, if filing a joint return, are authorizing DRS to call the designee to answer any questions that may arise during the processing of your return. You are also authorizing the designee to: • Give DRS any information missing from your return; • Call DRS for information about the processing of your return or the status of your refund or payment; and • Respond to certain DRS notices you have shared with the designee about math errors, offsets, and return preparation. The notices will not be sent to the designee. Once DRS processes the return, the authorization ends. The authorization cannot be revoked. However, the authorization will automatically end no later than the due date (without regard to extensions) for filing your 2024 tax return. This is April 15, 2025, for most taxpayers. Selecting a designee does not replace a power of attorney and will not authorize the designee to receive refunds, bind you to anything (including additional tax liabilities), or represent you before DRS. To authorize another individual to represent you or act on your behalf, you must complete LGL‑001, Power of Attorney. Order of Attachments If you are submitting any of the following, paper clip them to the front of your Connecticut income tax return in the following order: • Your check for payment of the tax due. See Pay by Mail at portal.ct.gov/DRS/Individuals/Resident-Income-Tax/ Tax-Information. • Form CT‑19IT, Title 19 Status Release; • Form CT‑1127, Application for Extension of Time for Payment of Income Tax; • Form CT‑1040 CRC, Claim of Right Credit; • Form CT‑8379, Nonobligated Spouse Claim; and • Federal Form 1310, Statement of Person Claiming Refund Due a Deceased Taxpayer. Form CT-1040 Instructions (Rev. 12/23) If you are submitting any of the following, attach them to the back of your return: • Supplemental Schedule CT‑1040WH, Connecticut Income Tax Withholding; • Schedule CT‑PE, Pass‑Through Entity Tax Credit; • Schedule CT‑IT Credit, Income Tax Credit Summary; • Schedule CT‑CHET, Connecticut Higher Education Trust (CHET) 529 College Savings Plan Contribution; • Schedule CT‑EITC, Connecticut Earned Income Tax Credit; • Schedule CT‑Dependent, Connecticut Resident Dependent Information; and • Form CT‑6251, Connecticut Alternative Minimum Tax Return - Individuals. You do not need to attach a copy of your previously‑filed Form CT‑1040 EXT. Filing Your Return Keep a copy of this return and all attachments for your records. Attach to this return any required schedules and forms. Do not attach copies of your federal income tax return or federal schedules. DRS does not provide return envelopes for mailing completed forms. See Mailing Addresses for Form CT-1040, at portal. ct.gov/DRS/Individuals/Resident-Income-Tax/TaxInformation for the correct address to use for returns with payments, returns with refunds, or payments only. Page 6 of 27 Form CT-1040 Schedules The following modifications to federal adjusted gross income are provided in Conn. Gen. Stat. § 12-701(a)(20). Your federal adjusted gross income may not be further modified in determining your Connecticut adjusted gross income except as expressly provided by Conn. Gen. Stat. § 12-701(a)(20). Schedule 1 – Modifications to Federal Adjusted Gross Income Additions to Federal Adjusted Gross Income Enter all amounts as positive numbers. Line 31: Interest on State and Local Government Obligations Other Than Connecticut Enter the total amount of interest income derived from state and municipal government obligations (other than obligations of the State of Connecticut or its municipalities) which is not taxed for federal income tax purposes. Do not enter interest income derived from government obligations of Puerto Rico, Guam, American Samoa, or U.S. Virgin Islands. Line 32: Exempt-Interest Dividends From a Mutual Fund Derived From State or Municipal Government Obligations Other Than Connecticut Enter the total amount of exempt-interest dividends received from a mutual fund that are derived from state and municipal government obligations other than obligations of the State of Connecticut or its municipalities. If the exempt-interest dividends are derived from obligations of Connecticut and other states, enter only the percentage derived from non-Connecticut obligations. Do not enter exempt-interest dividends derived from government obligations of Puerto Rico, Guam, American Samoa, or U.S. Virgin Islands. Example: A fund invests in obligations of many states including Connecticut. Assuming that 20% of the distribution is from Connecticut obligations, the remaining 80% would be added back on this line. Line 33: Taxable Amount of Lump-Sum Distributions From Qualified Plans Not Included in Federal AGI If you filed federal Form 4972, Tax on Lump‑Sum Distributions, with your federal Form 1040, or federal Form 1040‑SR, to compute the tax on any part of a distribution from a qualified plan, enter that part of the distribution on Line 33. Do not enter any part of the distribution reported on federal Form 1040, Line 5a, or federal Form 1040‑SR, Line 5a, or federal Form 1040, Schedule D, or federal Form 1040‑SR, Schedule D. Line 34: Beneficiary’s Share of Connecticut Fiduciary Adjustment If you have any income from an estate or trust, your share of any Connecticut modifications (that is, your share of the Form CT-1040 Instructions (Rev. 12/23) Connecticut fiduciary adjustment) that applies to the income will be shown on Form CT‑1041, Connecticut Income Tax Return for Trusts and Estates, Schedule CT‑1041B, Part 1, Column 5. Your share of these modifications should be provided to you by the fiduciary on Schedule CT‑1041 K‑1. If your share of these modifications is an amount greater than zero, enter the amount on Line 34. If the amount is less than zero, enter the amount on Line 46. If you are a beneficiary of more than one trust or estate, enter the net amount of all modifications, if greater than zero, on Line 34 or, if less than zero, on Line 46. Line 35: Loss on Sale of Connecticut State and Local Government Bonds Enter the total losses from the sale or exchange of notes, bonds, or other obligations of the State of Connecticut or its municipalities used to determine gain (loss) for federal income tax purposes whether or not the entire loss is used in computing federal adjusted gross income. Line 36: Section 168(k) Federal Bonus Depreciation Deduction Enter 100% of the amount of § 168(k) bonus depreciation reported for federal income tax purposes for this taxable year, provided such amount is deducted in determining the federal AGI for the taxable year. Line 36a: Section 179 Federal Deduction Enter 80% of the § 179 amount deducted in determining the federal AGI for the taxable year. Line 37: Other Use Line 37 to report any of the following modifications: 1. Add back any treaty income reported on federal Form 1040NR if a nonresident alien. Enter the words “treaty income” in the space provided. 2. Add back any loss or deduction of an enrolled member of the Mashantucket Pequot Tribe who resides in Indian country of such tribe or any loss or deduction of an enrolled member of the Mohegan Tribe who resides in Indian country of such tribe where the loss or deduction is derived from or connected with Indian country of the tribe. Enter the words “Mashantucket Pequot Tribe enrolled member” or “Mohegan Tribe enrolled member,” as the case may be. 3. Add back any Connecticut income tax deducted on the federal income tax return to arrive at federal adjusted gross income. Do not add back any Connecticut income tax deducted on federal Form 1040, Schedule A, or federal Form 1040‑SR, Schedule A. 4. Add back any expenses paid or incurred for the production (including management, conservation, and maintenance of property held for the production) or collection of income exempt from Connecticut income tax which were deducted on the federal return to arrive at federal adjusted gross income. Page 7 of 27 5. Add back any amortizable bond premium on bonds producing interest income exempt from Connecticut income tax which premiums were deducted on the federal return to arrive at federal adjusted gross income. 6. Add back any interest or dividend income on obligations or securities of any authority, commission, or instrumentality of the United States which federal law exempts from federal income tax but does not exempt from state income taxes. 7. Add back to the extent deductible in determining federal adjusted gross income, any interest expenses on indebtedness incurred or continued to purchase or carry obligations or securities (the income from which is exempt from Connecticut income tax). 8. Add back the following distributions from an MRA established pursuant to Conn. Gen. Stat. § 32-9zz: • 100% of any distribution from such MRA not used to purchase machinery or equipment for use in Connecticut or manufacturing facilities, as defined in Conn. Gen. Stat. § 12-81(72), or for workforce training, development or expansion in Connecticut; and • 100% of any return of money remaining in the MRA at the end of the five-year period after such account’s creation or organization, including any interest earned. See Special Notice 2012(6), 2012 Legislative Changes Affecting the Income Tax. 9. Add back, to the extent not properly includible in gross income for federal income tax purposes, any compensation required to be recognized under 26 U.S.C. § 457A that is attributable to services performed within Connecticut. 10. Also use Line 37 to report any additions to federal adjusted gross income required for Connecticut income tax purposes which are not listed on Lines 31 through 36. Line 38: Total Additions Add Lines 31 through 37 and enter the total. Subtractions From Federal Adjusted Gross Income Enter all amounts as positive numbers. Line 39: Interest on U.S. Government Obligations Enter the total amount of interest income (to the extent includible in federal adjusted gross income) derived from U.S. government obligations, which federal law prohibits states from taxing (for example, U.S. government bonds such as Saving Bonds Series EE or Series HH and U.S. Treasury bills or notes). For Series EE U.S. Savings Bonds, you are entitled to include on Line 39 only the amount of interest subject to federal Form CT-1040 Instructions (Rev. 12/23) income tax after exclusion of the amounts reported on federal Form 8815. In general, you will report the net taxable amount on federal Form 1040, Schedule B, or federal Form 1040‑SR, Schedule B. Do not enter the amount of interest income derived from Federal National Mortgage Association (Fannie Mae) bonds, Government National Mortgage Association (Ginnie Mae) bonds, and Federal Home Loan Mortgage Corporation (Freddie Mac) securities. Federal law does not prohibit states from taxing interest income derived from these obligations and this interest income is taxable for Connecticut income tax purposes. Do not enter the amount of interest paid to you on any federal income tax refund. Line 40: Exempt Dividends From Certain Qualifying Mutual Funds Derived From U.S. Government Obligations Enter the total amount of exempt dividends received from a qualifying mutual fund that are derived from U.S. government obligations. A mutual fund is a qualifying fund if, at the close of each quarter of its taxable year, at least 50% of the value of its assets consists of U.S. government obligations. The percentage of dividends that are exempt dividends should be reported to you by the mutual fund. Do not enter the amount of dividend income derived from Federal National Mortgage Association (Fannie Mae) bonds, Government National Mortgage Association (Ginnie Mae) bonds, and Federal Home Loan Mortgage Corporation (Freddie Mac) securities. Federal law does not prohibit states from taxing income derived from these obligations, and this income is taxable for Connecticut income tax purposes. Example: A qualifying mutual fund pays a dividend of $100. Of the distribution, 55% is attributable to U.S. Treasury bills and 45% to other investments. The amount reported on Line 40 is $55. See Policy Statement 2005(2), Connecticut Income Tax on Bonds or Obligations Issued by the United States Government, by State Governments, or Municipalities. Line 41: Social Security Benefit Adjustment If you receive Social Security benefits subject to federal income tax, you may reduce or eliminate the amount of your benefits subject to Connecticut income tax. Your Social Security benefits are fully exempt from Connecticut income tax if your required filing status is single or married filing separately and the amount reported on Form CT‑1040, Line 1, is less than $75,000; or married filing jointly, qualifying surviving spouse, or head of household and the amount reported on Form CT‑1040, Line 1, is less than $100,000. If this is the case, enter on Line 41 the amount of federally taxable Social Security benefits reported on federal Form 1040, Line 6b, or federal Form 1040‑SR, Line 6b. Page 8 of 27 Your Social Security benefits are partially exempt from Connecticut income tax if your federal adjusted gross income is above the threshold for your filing status. If you used the worksheets in the instructions to federal Forms 1040 and 1040‑SR to calculate the amount of taxable Social Security benefits, complete the Social Security Benefit Adjustment Worksheet, on Page 24, and enter the amount from Line F on Line 41. You may use the online Social Security Benefit Adjustment Calculator by visiting myconneCT at portal.ct.gov/DRS-myconneCT. Below the Individuals panel on the myconneCT homepage, select View Tax Calculators, then select Social Security Benefit Calculator. If you are using a worksheet not from a federal publication, such as one you printed from a tax preparation program on your computer or one given to you by your tax preparer, you should verify that the line references from these worksheets are the same as the equivalent federal publication to be certain you are using the proper amounts. Line 42: Refunds of State and Local Income Taxes Enter the amount of taxable refunds of state and local income taxes reported on federal Form 1040, Schedule 1, Line 1, or federal Form 1040‑SR, Schedule 1, Line 1. If federal Form 1040, Schedule 1, Line 1, or federal Form 1040‑SR, Schedule 1, Line 1, is blank, enter “0.” Line 43: Tier 1 and Tier 2 Railroad Retirement Benefits and Supplemental Annuities If you received Tier 1 or Tier 2 (or both) railroad retirement benefits or supplemental annuities during 2023, you may deduct the amount included in your federal adjusted gross income, but only to the extent the benefits were not already subtracted on Line 41. Enter the amount of Tier 1 and Tier 2 railroad retirement benefits reported on federal Form 1040, Line 5b, or federal Form 1040-SR, Line 5b. Likewise, enter the amount of railroad unemployment benefits, including sickness benefits paid by the Railroad Retirement Board (RRB) in lieu of unemployment benefits, to the extent included in your federal adjusted gross income. However, do not enter sickness benefit paid by the RRB resulting from an on-the-job injury because these benefits are not included in your federal adjusted gross income. Line 44: Military Retirement Pay Subtract income received as military retirement pay, to the extent included in federal adjusted gross income, if you are a retired member of the armed forces of the United States or the National Guard (retired military member) or if you are a beneficiary receiving survivor benefits under an option or election made by a deceased retired military member. Payments received by a former spouse of a retired military member, under a final decree of divorce, dissolution, annulment, or legal separation or a court ordered, ratified, or approved property settlement incident to a decree dividing military retirement pay, do not qualify for the military retirement pay exclusion. Form CT-1040 Instructions (Rev. 12/23) Line 45: 50% of Connecticut Teachers’ Retirement Pay Subtract 50% of the income received from the Connecticut Teachers’ Retirement System, provided you properly included such income in federal adjusted gross income for federal income tax purposes. You must have received a Form 1099‑R from the Connecticut Teachers’ Retirement Board to be eligible for the subtraction modification. See Special Notice 2022(4), 2022 Legislative Changes Affecting the Income Tax. Line 46: Beneficiary’s Share of Connecticut Fiduciary Adjustment If you have any income from an estate or trust, your share of any Connecticut modifications (that is, your share of the Connecticut fiduciary adjustment) that applies to the income will be shown on Form CT‑1041, Schedule CT‑1041B, Part 1, Column 5. Your share of these modifications should be provided to you by the fiduciary on Schedule CT‑1041 K‑1. If your share of these modifications is an amount less than zero, enter the amount on this line. If the amount is greater than zero, enter the amount on Line 34. If you are a beneficiary of more than one trust or estate, and the net amount of all modifications is less than zero, then enter the net amount on this line. Line 47: Gain on Sale of Connecticut State and Local Government Bonds Enter the total of all gains from the sale or exchange of notes, bonds, or other obligations of the State of Connecticut or its municipalities used to determine gain (loss) for federal income tax purposes. Line 48: Connecticut Higher Education Trust (CHET) Contributions Enter your contributions to a CHET account(s). The modification cannot exceed the maximum allowable contribution. The maximum CHET contribution that may be subtracted is the lesser of (1) the amount of contributions to all CHET accounts during the taxable year; or (2)(A) $5,000 for each individual taxpayer (including individuals whose filing status on their Connecticut income tax return is single, head of household, filing separately, or (B) $10,000 for individuals whose filing status on their Connecticut income tax return is filing jointly or qualifying surviving spouse. If your CHET contribution during the taxable year exceeds the maximum CHET contribution, the excess may be carried forward for the five succeeding taxable years. The CHET carryforward amount subtracted from federal adjusted gross income in the succeeding taxable years can not exceed the maximum CHET contribution limitations above. CHET contributions made in the current taxable year should be used before using any carryover from prior years. Enter the CHET account number in the space provided. If you made contributions to more than one account, you enter only one account number. See Special Notice 2006(11), 2006 Legislative Changes Affecting the Income Tax. Page 9 of 27 Line 48a: 25% of Section 168(k) Federal Bonus Depreciation Deduction Added Back in Preceding Four Years Enter 25% of the § 168(k) federal deduction that you added back on your Connecticut income tax return in the four preceding taxable years. Line 48b: Pension or Annuity Income If your filing status is single, married filing separately, or head of household with federal AGI for the taxable year of less than $75,000 or married filing jointly with federal AGI of less than $100,000, and you receive distributions from certain pensions and annuities, such as from a defined benefit plan, 401(k), 403(b) or 457(b) plans, enter 100% of such distribution. If the distribution is from an IRA (other than a Roth IRA), enter 25%. The following amounts are not included in Line 4b or 5b of the federal income tax return and should not be added when calculating the pension and annuity amount for Line 48b of Form CT‑1040: • Disability pensions received before the recipient met the minimum retirement age set by his or her employer; • Corrective distributions of excess elective deferrals or other excess contributions to retirement plans; and • Distributions from Roth IRAs. On federal Form 1040, or federal Form 1040‑SR, IRA distributions and pensions and annuities are reported on separate lines. To determine the amount to enter on this line, begin with the amount reported on federal Form 1040, Line 5b, or federal Form 1040‑SR, Line 5b, Taxable amount of pensions and annuities. From the amount on Line 5b, subtract military retirement pay, Tier 1 and Tier 2 railroad retirement benefits, and Connecticut teachers’ retirement pay. To the result, add 25% of the amount reported on federal Form 1040, Line 4b, or federal Form 1040 SR, Line 4b, Taxable amount of IRA distributions. Enter the amount on this line. Military retirement pay and Tier 1 and Tier 2 railroad retirement benefits are fully exempt from Connecticut income tax, and should not be included in this calculation. The subtraction modification for these benefits are reported on Lines 44 and 43, respectively, on the Connecticut return. A survivor or beneficiary of a plan participant may claim the 100% subtraction modification for Connecticut income tax purposes in the same manner as the plan participant would have been allowed to claim the modification, if such survivor or beneficiary is required to report the pension and annuity income on the federal income tax return in the same manner as the plan participant would have reported such income. Retired teachers may claim either the teachers’ pension subtraction modification or the pension and annuity subtraction modification (if their federal adjusted gross income is below the applicable threshold) on the income they receive from the Connecticut Teachers’ Retirement System. Connecticut law does not allow a double benefit for the same income. Example: Anna’s filing status on her Connecticut resident return is single. She receives $30,000 from the Teachers’ Retirement System and $38,000 in pension payments from XYZ Corporation for the taxable year. Both amounts are includible in Anna’s federal gross income, and her federal AGI is less than $75,000. On the Connecticut return for the taxable year, Anna may subtract $15,000 ($30,000 x 50%) on Line 45, Schedule 1, Form CT‑1040, and $38,000 as a pension and annuity income subtraction modification on Line 48b, Schedule 1, Form CT‑1040. Form CT-1040 Instructions (Rev. 12/23) Line 48c: Ordinary and necessary business expenses for taxpayers licensed under Chapter 420f or 420h that are not claimed for federal income tax purposes For taxpayers that are licensed under either Chapter 420f or 420h of the Connecticut General Statutes, enter the amount of ordinary and necessary business expenses allowed under IRC § 162 in determining the Connecticut income tax liability. Line 49: Other Use Line 49 to report any of the following modifications: 1. Subtract any income or gain of an enrolled member of the Mashantucket Pequot Tribe who resides in Indian country of such tribe or any income or gain of an enrolled member of the Mohegan Tribe who resides in Indian country of such tribe where the income or gain is derived from or connected with Indian country of the tribe. Enter the words “Mashantucket Pequot Tribe enrolled member” or “Mohegan Tribe enrolled member,” as the case may be. 2. Subtract the amount of interest earned on funds deposited in a Connecticut individual development account to the extent included in federal adjusted gross income. 3. Subtract any interest paid on indebtedness incurred to acquire investments that provide income taxable in Connecticut but exempt for federal purposes, that is not deductible in determining federal adjusted gross income, and is attributable to a trade or business of that individual. 4. Subtract expenses paid or incurred for the production (including management, conservation, and maintenance of property held for production) or collection of income taxable in Connecticut but exempt from federal income tax, that are not deductible in determining federal adjusted gross income, and are attributable to a trade or business of that individual. 5. Subtract the amount of any distributions you received from the CHET fund as a designated beneficiary to the extent includible in your federal adjusted gross income. Congress passed legislation excluding from federal gross income any distribution from a qualified state tuition program (such as CHET) to the extent the distribution is used to pay for qualified higher education expenses (Pub. L. No. 107‑16, § 402). To the extent any distribution from CHET is excluded from federal gross income, the amount should not be reported as a subtraction modification on Line 49. 6. Subtract any amortizable bond premium on bonds that provide interest income taxable in Connecticut but exempt from federal income tax, which premiums were not deductible in determining federal adjusted gross income and are attributable to a trade or business of that individual. 7. Subtract the amount of any interest income from notes, bonds, or other obligations of the State of Connecticut included in federal adjusted gross income. This modification includes any Build America Bond tax credit amount if the Build America Bond, as described in Section 1531 of the American Recovery and Reinvestment Act of 2009, was issued by the State of Connecticut or a Connecticut subdivision and only to the extent the credit amount is treated as interest includible in gross income for federal income tax purposes. 8. Subtract the amount of any interest, dividends, or capital gains earned on contributions to accounts established for a designated beneficiary under the Connecticut Homecare Option Program for the Elderly to the extent the interest, dividends, or capital gains are properly included in the gross income of the designated beneficiary for federal income tax purposes. 9. Subtract contributions made to an MRA established pursuant to Conn. Gen. Stat. § 32-9zz. See Special Notice 2012(6), 2012 Legislative Changes Affecting the Income Tax. Page 10 of 27 10. Subtract 25% of the § 179 federal deduction that you added back on your Connecticut income tax return in the four preceding taxable years. 11. Subtract the amount, to the extent included in federal adjusted gross income, of any financial assistance received from the Crumbling Foundations Assistance Fund; paid to or on behalf of the taxpayer under the Collapsing Foundations Credit Enhancements Program; or financial assistance received from a municipality by the taxpayer to repair concrete foundations that have deteriorated due to the presence of pyrrhotite. 12. Subtract certain costs incurred by the taxpayer in connection with the donation to another person of human bone marrow, or all or part of a human liver, pancreas, kidney, intestine, or lung, for the purpose of organ transplantation. The costs include lost wages, medical expenses, travel expenses, and housing expenses. The subtraction can not exceed $10,000. 13. Subtract the Bioscience Venture Capital amount as calculated on Schedule CT‑BIO, Bioscience Worksheet. 14. Subtract the amount of any Earned Income Tax Enhancement payment received during the 2023 taxable year, to the extent included in federal adjusted gross income. Do not use Line 49 to subtract income subject to tax in a qualifying jurisdiction (see Schedule 2 - Credit for Income Taxes Paid to Qualifying Jurisdictions, below) or income of a nonresident spouse. See Special Rules for Married Individuals on Page 1. Line 50: Total Subtractions Add Lines 39 through 49 and enter the total. Schedule 2 – Credit for Income Taxes Paid to Qualifying Jurisdictions You must first complete Form CT‑1040, Schedule 3 - Credit for Property Taxes Paid on Your Primary Residence, Motor Vehicle, or Both, before completing Schedule 2. See the instructions for Schedule 3 - Property Tax Credit on Page 13. Am I Eligible for the Credit for Income Taxes Paid to Qualifying Jurisdictions? If you are a resident of Connecticut and if any part of your income was taxed by a qualifying jurisdiction, you may be able to claim a credit against your Connecticut income tax liability for qualifying income tax payments you have made. Taxpayers seeking a credit for alternative minimum taxes paid to another jurisdiction must complete Form CT‑6251, Connecticut Alternative Minimum Tax Return - Individuals, to calculate their alternative minimum tax credit. Qualifying Jurisdiction A qualifying jurisdiction includes another state of the United States, a local government within another state, or the District of Columbia. A qualifying jurisdiction does not include the State of Connecticut, the United States, or a foreign country or its provinces (for example, Canada and Canadian provinces). Qualifying Income Tax Payments Qualifying income tax payments are income taxes you actually paid on income: • Derived from or connected with sources within the qualifying jurisdiction; and • Subject to tax in the qualifying jurisdiction. Form CT-1040 Instructions (Rev. 12/23) Qualifying income tax payments include direct and indirect pro rata share of taxes paid to a qualifying jurisdiction by a pass‑through entity if such pass‑through entity is subject to a pass‑through entity tax substantially similar to the PE Tax imposed in Connecticut. Certain qualifying jurisdictions impose on electing employers a tax on wages. The tax is calculated based on your (the employee) wages. The qualifying jurisdiction allows you to take a credit for the tax paid by your employer. Although the tax is paid on your behalf, it is not income tax withholding. This type of tax is generally referred to as an employer compensation expense tax. For Connecticut income tax purposes, qualifying income tax payments include the amount of the employer compensation expense tax credit allowed by the qualifying jurisdiction. Income Derived From or Connected With Sources Within a Qualifying Jurisdiction • Compensation received for personal services performed in a qualifying jurisdiction; • Compensation received as an employee for personal services performed from a home office in Connecticut for an employer in a qualifying jurisdiction that applies a convenience of the employer test in determining whether nonresident compensation is derived from or connected with sources within the qualifying jurisdiction; • Income from a business, trade, or profession carried on in a qualifying jurisdiction; • Gambling winnings from a state-conducted lottery. See Informational Publication 2015(23), Connecticut Income Tax Treatment of State Lottery Winnings Received by Residents and Nonresidents of Connecticut; or • Income from real or tangible personal property situated in a qualifying jurisdiction. Income from intangibles, such as stocks and bonds, is not considered derived from or connected with sources within a qualifying jurisdiction unless the income is from property employed in a business, trade, or profession carried on in that jurisdiction. What Payments Do Not Qualify • Income tax payments made to a qualifying jurisdiction on income not derived from or connected with sources within the qualifying jurisdiction (such as wages not derived from or connected with sources within the qualifying jurisdiction); • Income tax payments made to a qualifying jurisdiction on income not included in your Connecticut adjusted gross income; • Income tax paid to a jurisdiction that is not a qualifying jurisdiction, including a foreign country or its provinces (for example, Canada and Canadian provinces); • Alternative minimum tax paid to a qualifying jurisdiction; • Income tax paid to a qualifying jurisdiction if you claimed credit on that jurisdiction’s income tax return for income tax paid to Connecticut; or • Penalties or interest on income taxes you paid to a qualifying jurisdiction. Page 11 of 27 Limitations to the Credit The total credit is limited to whichever of the following amounts is least: • The amount of income tax paid to the qualifying jurisdiction; • The portion of Connecticut income tax due on the Connecticut adjusted gross income sourced in the qualifying jurisdiction; or • The amount of your Connecticut income tax entered on Form CT‑1040, Line 6. How to Calculate the Credit You must first complete your income tax return(s) for the qualifying jurisdiction(s). Then complete the Schedule 2 Worksheet on Page 25 to determine the amount to enter on Schedule 2, Line 53. The allowed credit must be separately computed for each qualifying jurisdiction. Use separate columns for each qualifying jurisdiction for which you are claiming a credit. Attach a copy of all income tax returns filed with qualifying jurisdictions to your Connecticut income tax return or the credit will be disallowed. Taxpayers filing Form CT‑1040 electronically should retain copies of all income tax returns filed with qualifying jurisdictions for three years from the date of filing. The forms must be provided to DRS upon request. Schedule 2 provides two columns, A and B, to compute the credit for two jurisdictions. If you need more than two columns, create a worksheet identical to Schedule 2 and attach it to the back of your Form CT‑1040. If you are claiming credit for income taxes paid to another state and to one of its political subdivisions, follow these rules to determine your credit. A. If the same amount of income is taxed by both the city and state (see example for Line 56 on Page 13): 2. Use only one column on Form CT‑1040, Schedule 2, to calculate your credit; 3. Enter the same income taxed by both city and state in that column on Schedule 2; and 4. Combine the amounts of tax paid to the city and the state and enter the total on Line 57 of that column. B. If the amounts of income taxed by both the city and state are not the same: 3. Use two columns on Form CT‑1040, Schedule 2; 4. Include only the same income taxed by both jurisdictions in the first column; and 5. Include the excess income taxed by only one of the jurisdictions in the next column. Schedule 2 – Worksheet Instructions Complete the Schedule 2 - Worksheet to determine the portion of your Connecticut adjusted gross income derived from a qualifying jurisdiction. For each line in Column 2, enter the items of income from Column 1 that meet all of the following conditions listed below. • The income is derived from or connected with sources within a qualifying jurisdiction; Form CT-1040 Instructions (Rev. 12/23) • The income is reported on an income tax return filed with that qualifying jurisdiction and subject to income tax in the jurisdiction; and • You have paid income tax on the income to that qualifying jurisdiction. If you paid income tax to more than one qualifying jurisdiction, you must complete a separate worksheet for each jurisdiction. Keep the worksheet with your 2023 tax records. Do not attach it to your tax return. Column 1 Enter on Lines 1 through 15 of the worksheet the corresponding amounts entered on your federal income tax return, federal Form 1040, or federal Form 1040‑SR, and Schedule 1. Enter on Line 17 of the worksheet the amount entered on Line 26 of Schedule 1 of your federal income tax return. Enter on Line 19 of the worksheet the net amount of your Connecticut modifications to federal adjusted gross income. Subtract Form CT‑1040, Schedule 1, Line 50, from Line 38 to arrive at this amount. Column 2 For each line, enter that portion of the amount entered on the same line of Column 1 you reported on an income tax return filed with (and on which income tax was paid to) the qualifying jurisdiction. On Line 17, enter only the portion of the total federal adjustments to income directly related to income sourced in the qualifying jurisdiction. On Line 19, enter only the portion of Connecticut modifications directly related to income sourced in the qualifying jurisdiction. The fact that the qualifying jurisdiction may take into account your entire adjusted gross income (to compute the rate at which your income sourced in that jurisdiction will be taxed) does not mean you paid income tax to that jurisdiction on your entire adjusted gross income. Because you are a nonresident of the qualifying jurisdiction, you may be taxed by that jurisdiction only on your income sourced in that jurisdiction. Example 1: Amy, a Connecticut resident whose filing status is single, earned wages of $150,000 from a company located in the State of New York. Amy works inside and outside of New York and allocated her wage income based upon the days worked in New York. She determined $100,000 to be her New York State allocated wage income and reported and paid this amount on her New York nonresident income tax return. On her federal Form 1040, Line 1z, she entered $150,000. When completing the Schedule 2 - Worksheet, she enters $150,000 in Column 1, Line 1, and $100,000 in Column 2, Line 1. Amy also enters $100,000 on Form CT‑1040, Schedule 2, Line 53. Example 2: Luke and Lee file a joint federal Form 1040 and a joint Form CT‑1040. Lee’s wages as an employee working in Rhode Island are $20,000 and Luke’s wages as an employee working in Connecticut are $25,000. On their federal Form 1040, Line 1z, they enter $45,000. When completing the Schedule 2 - Worksheet, Luke and Lee enter $45,000 in Column 1, Line 1, and $20,000 in Column 2, Line 1. Luke and Lee also enter $20,000 on Form CT‑1040, Schedule 2, Line 53. Example 3: Linda is a sole proprietor of a business conducted at two locations: one in Connecticut and one in Massachusetts. On Linda’s federal Form 1040, Schedule 1, Line 3, she entered $100,000. Of the $150,000 of gross income reported on federal Form 1040, Schedule C, $90,000 is derived from the Massachusetts location. Of the $50,000 Page 12 of 27 of expenses reported on Schedule C, $35,000 is derived from the Massachusetts location. When completing the Schedule 2 - Worksheet, Linda enters $100,000 in Column 1, Line 6, and $55,000 ($90,000 $35,000) in Column 2, Line 6. Linda also enters $55,000 on Form CT‑1040, Schedule 2, Line 53. Schedule 2 – Line Instructions Line 51: Modified Connecticut Adjusted Gross Income Add to Connecticut adjusted gross income from Line 5 any net loss derived from or connected with sources in a qualifying jurisdiction(s) where you were subject to income taxation whether or not income tax was actually paid to the jurisdiction(s). The modified amount is entered on Line 51. Example: Fred’s Connecticut adjusted gross income of $60,000 includes income of $15,000 from business activities conducted in Massachusetts and a net loss of $20,000 from a business conducted in Rhode Island. He m
Tax Instruction Booklet
If you are self employed, even part of the time, you need to file estimated quarterly taxes using form CT-140ES.
We last updated the Form CT-1040 Instruction Booklet in January 2024, so this is the latest version of Tax Instruction Booklet , fully updated for tax year 2023. You can download or print current or past-year PDFs of Tax Instruction Booklet directly from TaxFormFinder. You can print other Connecticut tax forms here.
TaxFormFinder has an additional 85 Connecticut income tax forms that you may need, plus all federal income tax forms.
| Form Code | Form Name |
|---|---|
| Form CT-1040 | Connecticut Resident Income Tax Return Tax Return |
| Tax Instruction Booklet | Form CT-1040 Instruction Booklet |
| Form CT-1040 EXT | Application for Extension of Time to File Connecticut Income Tax Return for Individuals Extension |
| CT-1040ES (Current Year) | Estimated Connecticut Income Tax Payment Coupon for Individuals Estimated |
| CT-1040NR/PY Instructions | Tax Instruction Booklet: CT-1040 for Nonresidents/Part-Year Residents Nonresident |
View all 86 Connecticut Income Tax Forms
Connecticut usually releases forms for the current tax year between January and April. We last updated Connecticut Tax Instruction Booklet from the Department of Revenue Services in January 2024.
About the Individual Income Tax
The IRS and most states collect a personal income tax, which is paid throughout the year via tax withholding or estimated income tax payments.
Most taxpayers are required to file a yearly income tax return in April to both the Internal Revenue Service and their state's revenue department, which will result in either a tax refund of excess withheld income or a tax payment if the withholding does not cover the taxpayer's entire liability. Every taxpayer's situation is different - please consult a CPA or licensed tax preparer to ensure that you are filing the correct tax forms!
We have a total of nine past-year versions of Tax Instruction Booklet in the TaxFormFinder archives, including for the previous tax year. Download past year versions of this tax form as PDFs here:
