- If your home of record is Connecticut you are a resident of Connecticut. As a resident you must file a resident return and pay any tax due unless you meet all of the following conditions for the entire taxable year:
- You did not maintain a permanent place of abode in Connecticut;
You maintained a permanent place of abode outside Connecticut; and
You spent 30 days or less in Connecticut.
If you meet all three conditions, you are considered a nonresident of Connecticut for the taxable year. You do not have to file a Connecticut income tax return unless you had Connecticut tax withheld or you had any income from Connecticut sources. (NOTE: Military personnel who do not meet all of the conditions above but who lived outside the United States for an extended period of time may qualify to be treated as nonresidents under the "Group B Exception". See IP 2018(15) for the Group B Exception rules.)
Requesting a refund if tax was withheld in error: If you meet all three conditions for being treated as a nonresident for the taxable year but you had Connecticut income tax withheld from your military pay in error, you must file Form CT-1040NR/PY to request a refund. Complete Lines 1-5 following the directions on the form. Enter “0” on Line 6 if you had no income from Connecticut sources. Complete the rest of the form including the withholding information under section 3 of the return. Attach a statement to the front of the return stating:
That you did not have a permanent place of abode in Connecticut during the taxable year;
- The location and a description of the permanent place of abode you maintained outside Connecticut and the beginning and ending dates of your stay there; and
- The exact number of days you were in Connecticut during the taxable year.
- Amending a previously filed return if you paid tax in error: In general, you must amend a previously filed Connecticut income tax return to claim a refund of taxes within 3 years of the original due date of the return or, if you filed a timely request for extension of time to file your Connecticut income tax return, within 3 years of the earlier of the date you filed the return or the extended due date. If you believe that you paid tax in error, use Form CT-1040X to amend the originally filed return. Form CT-1040X is year specific. Go to the Amending a Previously Filed Income Tax Return page and choose the correct version of the form based on the year you are amending.
Withholding: If your home of record is Connecticut but you meet all three criteria above for being considered a nonresident (or you meet the Group B exception described in IP 2018(15) you are not subject to tax on your military pay. However, DFAS will withhold Connecticut income tax unless you complete Form CT-W4 each year and enter "E" on Line 1 to claim exemption from the tax. Unless you provide a new Form CT-W4 to your paymaster each year by February 15, the paymaster will begin to withhold Connecticut income tax for that year.
If Connecticut tax is being withheld from your income even though you will be exempt from tax for the entire year, complete Form CT-W4 claiming exemption and provide it to the paymaster as soon as possible. Do not send Form CT-W4 to DRS as it is your paymaster that is withholding the tax.
Nonresidents whose home of record is outside of Connecticut
If your domicile was not in Connecticut when you entered the military and you were later assigned to active duty in Connecticut, you do not become a Connecticut resident just because you maintain a permanent place of abode in Connecticut. If your home of record is in another State, and are stationed in Connecticut, you are a nonresident and your military pay is not subject to Connecticut income tax.
However, other income that you receive from Connecticut sources while you are a nonresident may be subject to tax. For example, if you have a civilian job in Connecticut during your off-duty hours, the income you earn from it is subject to Connecticut income tax. Income or gain received by a nonresident from property located in Connecticut or from a business, trade or profession carried on in this state is also subject to tax.
Military Spouses Residency Relief Act: The Military Spouses Residency Relief Act provides that, effective for taxable years beginning on or after January 1, 2009, where a service member's spouse (spouse) is in Connecticut solely to be with the service member serving in compliance with military orders, income from services performed by the spouse in Connecticut shall not be deemed to be income derived from or connected with Connecticut sources unless the spouse's state of residence is Connecticut. If a spouse had income for services performed in Connecticut and had Connecticut income tax withheld from wages or made estimated payments for any taxable year after 2009, then he or she may file a Connecticut income tax return and request a refund.
For more information on the taxation of members of the armed forces and veterans and their spouses, please review IP 2018(15).