Connecticut Nonresident and Part-Year Resident Income Tax Information
- What’s New?
- Who Must File Form CT-1040NR/PY
- When to File
- Gross Income Test
- Filing the Connecticut Income Tax Return Electronically
- Special Information for Nonresident Aliens
- Resident, Part-Year Resident or Nonresident
- Military Personnel Filing Requirements
- How Nonresidents and Part-Year Residents are Taxed
- Connecticut Adjusted Gross Income
- Items Subject to Special Accrual
- Extension Requests
- Estimated Tax Payments for Tax Year 2022
- Annualized Income Installment Method
- Filing Form CT-1040ES
- Special Rules for Farmers and Fishermen
- Filing Form CT-2210
- Interest and Penalties
- Refund Information
- Payment Options
Subtraction Modification for Certain IRA Distributions
Beginning with taxable year 2023, a subtraction modification for distributions from individual retirement accounts (IRAs), other than Roth IRAs, will be phased in over a four year period. The subtraction modification may be claimed by taxpayers whose federal adjusted gross income is less than $75,000 (for single, married filing separately, and head of household) or $100,000 (for married filing jointly).
The subtraction modification will be allowed to the extent the IRA distributions are included in federal adjusted gross income and will be phased in as follows:
Subtraction Equal to:
|2023||25% of IRA distribution|
|2024||50% of IRA distribution|
|2025||75% of IRA distribution|
|2026 and after||100% of IRA distribution|
Connecticut Teachers’ Retirement System Income
Under prior law, retired teachers were only allowed to claim the teachers’ pension subtraction on the income they received from the Connecticut Teachers’ Retirement System.
For taxable years beginning on or after January 1, 2021, retired teachers are now allowed to claim either the teachers’ pension subtraction or the pension and annuity subtraction (if their adjusted gross income is below the applicable threshold) on the income they receive from the Connecticut Teachers’ Retirement System.
For a detailed list of What’s New, see SN 2021(6), 2021 Legislative Changes Affecting the Income Tax
You must file Form CT‑1040NR/PY, Connecticut Nonresident and Part-Year Resident Income Tax Return, if you were a nonresident or part‑year resident of Connecticut in 2021 and any of the following is true for the taxable year:
- You had Connecticut income tax withheld;
- You made estimated tax payments to Connecticut or made a payment with Form CT‑1040 EXT, Application for Extension of Time to File Connecticut Income Tax Return for Individuals;
- You had a PE Tax Credit and your PE did not elect to remit composite income tax payments on your behalf;
- You were a part‑year resident who meets the Gross Income Test or who had a federal alternative minimum tax liability; or
- You were a nonresident with Connecticut-sourced income who meets the Gross Income Test or had a federal alternative minimum tax liability. See Connecticut-Sourced Income of a Nonresident.
If none of the above apply, do not file Form CT‑1040NR/PY.
Gross income means all income you received in the form of money, goods, property, services not exempt from federal income tax, and any additions to income required to be reported on Form CT‑1040NR/PY, Schedule 1.
Gross income includes income from sources within Connecticut and outside of Connecticut. Gross income includes, but is not limited to:
- Compensation for services, including wages, fees, commissions, taxable fringe benefits, and similar items;
- Gross income from a business;
- Capital gains;
- Interest and dividends;
- Gross rental income;
- Gambling winnings;
- Taxable pensions and annuities;
- Prizes and awards;
- Your share of income from partnerships, limited liability companies, S corporations, estates, or trusts;
- IRA distributions;
- Unemployment compensation;
- Federally taxable Social Security benefits; and
- Federally taxable disability benefits.
Your Connecticut income tax return is due on or before April 15, 2022. If you are not a calendar year filer, your return is due on or before the fifteenth day of the fourth month following the close of your taxable year. If the due date falls on a Saturday, Sunday, or legal holiday, the return will be considered timely filed if filed by the next business day.
In 2022, the due date for filing a Connecticut Income Tax Return (April 15) falls on a Friday which is a legal holiday in the District of Columbia (Emancipation Day). Therefore, for filing purposes, the return (and payment) will be considered timely if filed on or before Monday, April 18, 2022.
Your return meets the timely filed and timely payment rules if the U.S. Postal Service cancellation date, or the date recorded or marked by a designated private delivery service (PDS) using a designated type of service, is on or before the due date.
Not all services provided by these designated PDSs qualify. This list is subject to change. See Policy Statement 2016(4), Designated Private Delivery Services and Designated Types of Service, for a current list of qualified PDSs.
If Form CT‑1040NR/PY is filed late or all the tax due is not paid with the return, see Interest and Penalties to determine if interest and penalty must be reported with the return.
You must file a Connecticut income tax return if your gross income for the taxable year exceeds:
- $12,000 and you are married filing separately;
- $15,000 and you are filing single;
- $19,000 and you are filing head of household; or
- $24,000 and you are married filing jointly or qualifying widow(er).
The following examples explain the gross income test for a Connecticut resident:
Example 1: A nonresident whose only income is from a sole proprietorship located in Connecticut files a federal Form 1040 and reports the following on Schedule C:
Because the gross income of $100,000 exceeds the minimum requirement and the income is from a Connecticut Source, this nonresident must file a Form CT-1040NR/PY.
Example 2: A Connecticut part-year resident who files as single on Form CT-1040NR/PY received $8,000 in federally nontaxable Social Security benefits and $11,000 in interest income. Since nontaxable Social Security benefits are not included in gross income, the Connecticut part-year resident is not required to file a return unless Connecticut tax was withheld or estimated tax payments were made.
Example 3: A nonresident single individual receives $15,000 in wage income from Connecticut employment and $1,000 in federally-exempt interest from California state bonds. The gross income (federal adjusted gross income with any additions to income from Form CT-1040NR/PY, Schedule 1, Line 33, Interest on state and local government obligations other than Connecticut) is $16,000. Therefore, the nonresident must file a Connecticut nonresident income tax return.
Most Connecticut taxpayers are able to use the DRS myconneCT to file their Connecticut income tax return at portal.ct.gov/myconneCT. You may electronically file your Connecticut income tax return through the myconneCT if all of the following are true:
- You filed a Connecticut income tax return in the last three years; or you have never filed a Connecticut income tax return, but you have a valid Connecticut driver’s license or Connecticut non-driver ID;
- Your filing status is the same as the last return DRS has on file, or, if your filing status changed since your last filing, your new filing status is displayed in the drop-down menu. If your new filing status is not displayed in the drop-down menu, visit the DRS website at portal.ct.gov/DRS and select For Individuals for information on other e-filing options;
- You are not filing Form CT‑1040 CRC, Claim of Right Credit;
- You are not filing Form CT‑19IT, Title 19 Status Release Form;
- You are not filing federal Form 1310, Statement of Person Claiming Refund Due a Deceased Taxpayer;
- You have no more than ten Forms W‑2 or 1099 that show Connecticut income tax withheld; and
- You have no more than ten Schedules CT K‑1 and Schedules CT‑1041 K-1 showing a PE Tax Credit allocated to you.
Do not send a paper copy of your electronically filed return with the payment. Send only Form CT‑1040V, Connecticut Electronic Filing Payment Voucher, with your payment.
If you are a nonresident alien, you must file a Connecticut income tax return if you meet the requirements of Who Must File Form CT-1040NR/PY. In determining whether you meet the gross income test, you must take into account any income not subject to federal income tax under an income tax treaty between the United States and the country of which you are a citizen or resident. Income tax treaty provisions are disregarded for Connecticut income tax purposes. Any treaty income you report on federal Form 1040NR and not subject to federal income tax must be added to your federal adjusted gross income. See Form CT-1040, Schedule 1, Line 37, or Form CT-1040NR/PY, Schedule 1, Line 39.
If you do not have and are not eligible for a Social Security Number (SSN), you must obtain an Individual Taxpayer Identification Number (ITIN) from the Internal Revenue Service (IRS) and enter it in the space provided for an SSN.
You must have applied for and been issued an ITIN before you file your income 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 federal Form W‑7, Application for IRS Individual Taxpayer Identification Number. DRS will contact you upon receipt of your return and 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.
A married nonresident alien may not file a joint Connecticut income tax return unless the nonresident alien is married to a citizen or resident of the United States and they have made an election to file a joint federal income tax return and they do, in fact, file a joint federal income tax return. Any married individual filing federal Form 1040NR is not eligible to file a joint federal income tax return or a joint Connecticut income tax return and must file a Connecticut income tax return as a married individual filing separately.
The following terms are used in this section:
Domicile (permanent legal residence) is the place you intend to have as your permanent home. It is the place you intend to return to whenever you are away. You can have only one domicile although you may have more than one place to live. Your domicile does not change until you move to a new location and definitely intend to make your permanent home there. If you move to a new location but intend to stay there only for a limited time (no matter how long), your domicile does not change. This also applies if you are working in a foreign country.
Permanent place of abode is a residence (a building or structure where a person can live) that you permanently maintain, whether or not you own it, and generally includes a residence owned by or leased to your spouse. A place of abode is not permanent if it is maintained only during a temporary stay for the accomplishment of a particular purpose.
You are a resident for the taxable year if:
- Connecticut was your domicile (permanent legal residence) for the entire taxable year; or
- You were not domiciled in Connecticut but you maintained a permanent place of abode in Connecticut during the entire taxable year and spent a total of more than 183 days in Connecticut during the taxable year.
Nonresident aliens who meet either of these conditions are considered Connecticut residents even if federal Form 1040NR is filed for federal income tax purposes. See also Special Rules for Married Individuals and Special Information for Nonresident Aliens.
If you are a resident, you must file Form CT-1040, Connecticut Resident Income Tax Return, if any of the following is true for the taxable year:
- You had Connecticut income taxes withheld;
- You made estimated tax payments or a payment with Form CT‑1040 EXT to Connecticut;
- You meet the gross income test;
- You had a federal alternative minimum tax liability; or
- You are claiming the Connecticut earned income tax credit (CT EITC).
You are a part-year resident for the taxable year if you changed your permanent legal residence by moving into or out of Connecticut during the taxable year.
If you are a part‑year resident, you may not elect to be treated as a resident individual. If you are a part-year resident and you meet the requirements of Who Must File Form CT-1040NR/PY for the taxable year, you must file Form CT‑1040NR/PY
You are a nonresident for the taxable year if you are neither a resident nor a part-year resident for the taxable year.
If you are a nonresident and you meet the requirements for Who Must File Form CT‑1040NR/PY for the taxable year, you must file Form CT‑1040NR/PY.
If you meet all of the conditions in Group A or Group B, you may be treated as a nonresident for 2021 even if your domicile was Connecticut.
- You did not maintain a permanent place of abode in Connecticut for the entire taxable year;
- You maintained a permanent place of abode outside of Connecticut for the entire taxable year; and
- You spent not more than 30 days in the aggregate in Connecticut during the taxable year.
- You were in a foreign country for at least 450 days during any period of 548 consecutive days;
- During this period of 548 consecutive days, you did not spend more than 90 days in Connecticut and you did not maintain a permanent place of abode in Connecticut at which your spouse (unless legally separated) or minor children spent more than 90 days; and
- During the nonresident portion of the taxable year in which the 548‑day period begins, and during the nonresident portion of the taxable year in which the 548‑day period ends, you were present in Connecticut for no more than the number of days that bears the same ratio to 90 as the number of days in the portion of the taxable year bears to 548.See the calculation below:
|Number of days in the nonresident portion x 90 = Maximum days allowed in Connecticut
See Special Notice 2000(17), 2000 Legislation Affecting the Connecticut Income Tax.
Military personnel and their spouses who claim Connecticut as their state of residence but are stationed elsewhere are subject to Connecticut income tax. If you enlisted in the military service as a Connecticut resident and have not established a new domicile (permanent legal residence) elsewhere, you are required to file a resident income tax return unless you meet all of the conditions in Group A or Group B for being treated as a nonresident. See Resident, Part‑Year Resident, or Nonresident above. The rate at which your other income is taxed for Connecticut income tax purposes has been affected by the enactment by Congress of the Service Members Civil Relief Act.
If your permanent home (domicile) was outside Connecticut when you entered the military, you do not become a Connecticut resident because you are stationed and live in Connecticut. As a nonresident, your military pay is not subject to Connecticut income tax. However, income you receive from Connecticut sources while you are a nonresident may be subject to Connecticut income tax.
Example: Jill is a resident of Florida. She enlisted in the Navy in Florida and was stationed in Groton, Connecticut. She earned $38,000 in military pay.
If Jill had no other income . . .
Since Jill resided and enlisted in Florida, she is considered a resident of Florida and does not have to file a Connecticut return. Military personnel are residents of the state in which they resided when they enlisted.
If Jill had a part-time job in Connecticut . . .
Her Connecticut-sourced income from nonmilitary employment is taxable. Jill must file Form CT‑1040NR/PY to report the income.
The income tax return of any individual in the U.S. Armed Forces serving in a combat zone or injured and hospitalized while serving in a combat zone is due 180 days after returning. There will be no penalty or interest charged. For any individual who dies while on active duty in a combat zone or as a result of injuries received in a combat zone, no income tax or return is due for the year of death or for any prior taxable year ending on or after the first day serving in a combat zone. If any tax was previously paid for those years, the tax will be refunded to the legal representative of the estate or to the surviving spouse upon the filing of a return on behalf of the decedent. In filing the return on behalf of the decedent, the legal representative or the surviving spouse should enter zero tax due and attach a statement to the return along with a copy of the death certificate.
Combat zone is an area designated by an Executive Order from the President of the United States as areas in which the U.S. Armed Forces are engaging or have engaged in combat. A combat zone also includes an area designated by the federal government as a qualified hazardous duty area.
Spouses of military personnel and civilians supporting the military in a combat zone region who are away from their permanent duty stations, but are not within the designated combat zone, are also eligible for the 180 day extension.
Individuals requesting an extension under combat zone provisions should print both the name of the combat zone and the operation they served with at the top of their Connecticut tax return. This is the same combat zone or operation name provided on their federal income tax return. See Informational Publication 2019(5), Connecticut Income Tax Information for Armed Forces Personnel and Veterans.
If you are a nonresident or a part‑year resident, your tax liability is computed based upon the greater of your Connecticut adjusted gross income or your total income from Connecticut sources.
You must calculate the tax in the same manner as a resident individual. Then, prorate the tax based upon the percentage of your Connecticut adjusted gross income derived from or connected with Connecticut sources.
Connecticut adjusted gross income is your federal adjusted gross income as properly reported on federal Form 1040, Line 11, or federal Form 1040‑SR, Line 11, and any Connecticut modifications required to be reported on Form CT‑1040NR/PY, Schedule 1.
Connecticut‑Sourced Income of a Nonresident
Connecticut‑sourced income of a nonresident is income derived from or connected with sources within Connecticut when the income is:
- Attributable to ownership or disposition of real or tangible personal property within Connecticut including but not limited to the income from the rental or sale of the property;
- Attributable to compensation for services performed in Connecticut or income from a business, trade, profession, or occupation carried on in Connecticut, including income derived directly or indirectly by athletes, entertainers, or performing artists from closed‑circuit and cable television transmissions of irregularly scheduled events if the transmissions are received or exhibited within Connecticut;
- Unemployment compensation received from the Connecticut Department of Labor;
- From a partnership doing business in Connecticut;
- From an S corporation doing business in Connecticut;
- From a trust or estate with income derived from or connected with sources within Connecticut;
- From a nonqualified deferred compensation plan for services performed wholly or partly within Connecticut;
- From reportable Connecticut Lottery winnings. Winnings from the Connecticut Lottery, including Powerball, are reportable if the winner was issued a federal Form W‑2G by the Connecticut Lottery Corporation. In general, the Connecticut Lottery Corporation is required to issue a federal Form W‑2G to a winner if the Connecticut Lottery winnings, including Powerball, are $600 or more and at least 300 times the amount of the wager. See Informational Publication 2015(23), Connecticut Income Tax Treatment of State Lottery Winnings Received by Residents and Nonresidents of Connecticut.
- Certain gains and losses from the sale or disposition of an interest in an entity that owns, directly or indirectly, real property in Connecticut. The term entity means a partnership, limited liability company, or S corporation. See Special Notice 2014(5), 2014 Legislative Changes Affecting the Income Tax on Sale or Disposition of an Interest in an Entity that Owns Property in Connecticut.
- Nonresident business income of a business, trade, profession, or occupation carried on in Connecticut and outside Connecticut. The items of income, gain, loss, and deduction derived from or connected with Connecticut sources are determined by using an apportionment formula. See Special Notice 2017(1), Legislative Changes Regarding Single-Sales Factor Apportionment and Market-Based Sourcing.
In general, Connecticut-sourced income of a nonresident does not include the following income even if it was included in your federal adjusted gross income:
- Distributions from pension or retirement plans (such as 401K plans);
- Interest, dividends, or gains from the sale or exchange of intangible personal property unless that property is employed in a business, trade, profession, or occupation carried on in Connecticut;
- Compensation received for active service in the U.S. military;
- Dividends from a corporation doing business in Connecticut;
- Compensation you received from an interstate rail carrier, interstate motor carrier, or an interstate motor private carrier;
- Gambling winnings (other than reportable Connecticut Lottery winnings shown on federal Form W‑2G). See Informational Publication 2011(27), Connecticut Income Tax Treatment of Gambling Winnings Other Than State Lottery Winnings;
- Interest you earned from a Connecticut bank (unless earned by a Connecticut business); or
- Income you received from business or employment activities in Connecticut that are considered casual, isolated, or inconsequential.
Activities Considered Casual, Isolated, or Inconsequential
In general, activities that meet one of the following tests are considered casual, isolated, or inconsequential:
- $6,000 test - The gross income from the presence of a nonresident in Connecticut does not exceed $6,000 in the taxable year. However, this test does not apply to a nonresident who is a member of one or more pass‑through entities with Connecticut‑sourced income. In such a case, the nonresident member’s activities is not considered casual, isolated, or inconsequential unless the member’s Connecticut‑sourced income from the pass‑through entity or entities is less than $1,000.
An employee’s wages for services performed in Connecticut are taxable, regardless of the amount, unless the employee’s services meet the Ancillary Activity Test. Also, reportable Connecticut Lottery winnings are taxable regardless of the amount.
- Ancillary Activity Test - The nonresident’s presence in Connecticut is ancillary to his or her primary business or employment duties performed at a base of operations outside of Connecticut. Ancillary activities are those activities that are secondary to the individual’s primary out-of-state duties, and include such things as presence in the state for planning, training, attendance at conferences or symposia, etc.
Connecticut-Sourced Income of a Part‑Year Resident
Connecticut‑sourced income of a part‑year resident is the sum of:
- Connecticut adjusted gross income for the part of the year you were a resident;
- Income derived from or connected with Connecticut sources for the part of the year you were a nonresident; and
- Special accruals.
A part‑year resident must recognize and report items of income, gain, loss, or deduction on the accrual basis regardless of the method of accounting normally used. In general, an item of income is subject to special accrual if the right to receive it is fixed and the amount to be paid is determinable with reasonable accuracy at the time residency status is changed.
Change from Resident to Nonresident
If you moved out of Connecticut during the taxable year, you must include, in calculating your Connecticut adjusted gross income for the period of your Connecticut residency, all items of income, gain, loss, or deduction you would be required to include if you were filing a federal income tax return for the same period on the accrual basis, together with any other accruals not otherwise includible or deductible for federal or Connecticut income tax purposes (such as deferred gains on installment obligations). Include items of special accrual with other items of income, gain, loss, and deduction reported for your residency period. See Schedule CT‑1040AW Instructions.
Example 1: Laura, a part‑year resident who moved out of Connecticut in June 2021, sold property on the installment basis in April 2021. She will receive annual installment payments for five years. She must accrue the entire gain on the sale of the property to the portion of 2021 when she was a resident of Connecticut because her right to receive the gain was fixed and the amount was determinable before the time she changed her residency.
Example 2: Rick, a resident of Connecticut, retired from his Connecticut employment on September 1, 2021, and moved to Florida. His employer notified him on August 15, 2021, that he would receive a $1,000 bonus on September 15, 2021. He must accrue the $1,000 bonus to the portion of 2021 when he was a resident because the right to receive the bonus was fixed and the amount was determinable before the time he changed his residency.
Example 3: Emma, a Connecticut resident, won the Connecticut Lottery in 2021. The proceeds from her wager were reported on federal Form W‑2G. Emma will receive her winnings on the installment basis for 20 years. During the taxable year, Emma moved out of Connecticut and is a part‑year resident because she changed her permanent legal residence. Ordinarily, Emma’s Connecticut Lottery winnings would be subject to special accrual; however, Emma may avoid special accrual on those lottery winnings as long as the Connecticut Lottery Corporation continues to withhold Connecticut income tax from those winnings. Emma will remain subject to Connecticut income tax for the years during which the lottery winnings are received.
If Emma won another state’s lottery during 2021, she would be subject to Connecticut income tax while a Connecticut resident. If Emma moves out of Connecticut, and is a part‑year resident because she changes her permanent legal residence, her lottery winnings would be subject to special accrual.
Payment of Tax
If you moved out of Connecticut during the taxable year and you have items of income or gain subject to special accrual, you must either:
- Include the items of accrual in the calculation of tax in the year you changed your residence; or
- File a surety bond or other security and pay the tax as a nonresident in the year(s) the income is actually received.
You may elect to defer the payment of Connecticut income tax on items of special accrual by filing a surety bond with DRS in an amount not less than the amount of the additional Connecticut income tax that would be payable if no surety bond or other security were filed. If you choose this option, you must file Form CT‑1040NR/PY for the taxable year when you change your residence. Include a separate statement showing the nature and amount of each item of special accrual as of the date of change of residence together with a computation of the additional Connecticut income tax which would be due if the election to file a surety bond had not been made.
For more information on the requirements for a surety bond, see Conn. Agencies Regs. § 12-717(c)(4)‑1, Form CT‑12‑717A, Change of Resident Status - Special Accruals, Connecticut Surety Bond Form, and Form CT‑12‑717B, Change of Resident Status Special Accruals, Other Acceptable Security Form.
Change from Nonresident to Resident
If you moved into Connecticut during the taxable year, items of income, gain, loss, or deduction that accrue to the period of the year prior to your Connecticut residency are not included in your Connecticut‑sourced income. However, items of income derived from or connected with Connecticut sources may not be accrued to the nonresident period and must be included in calculating your Connecticut-sourced income for that year.
Example: Nikki was an Alabama resident from January 1, 2021, until July 31, 2021. She became a Connecticut resident on August 1. While a resident of Alabama, Nikki earned $10,000 for work performed in that state, but she did not receive payment for that work until September 30, 2021.
Nikki also owned a condominium in Connecticut, which she rented to a third party from January 1 to July 31, 2021. She received payment of the rent for the first four months of the year while she was living in Alabama and she received the remaining payments after she became a Connecticut resident.
Nikki will file a Connecticut part-year resident return for 2021. The $10,000 of Alabama sourced income earned before Nikki changed her residency is accrued to her nonresidency period even though she received the payment after becoming a Connecticut resident. The rental payments from Connecticut real estate are considered Connecticut‑sourced income regardless of when she received this income. Therefore, the entire amount of rental income is includible in her Connecticut adjusted gross income and none of it is subject to special accrual.
Economic nexus is the basis for determining whether nonresident partners or members of a partnership or S corporation are subject to Connecticut income tax on income derived from or connected with sources within the state. A partnership or S corporation has “substantial economic presence” in Connecticut if it purposefully directs business towards the state. Its purpose can be determined by such measures as the frequency, quantity, and systematic nature of its economic contact with the state. See Informational Publication 2010(29.1), Q & A on Economic Nexus.
Extension of Time to File
To request an extension of time to file your return, you must file Form CT‑1040 EXT, Application for Extension of Time to File Connecticut Income Tax Return for Individuals, and pay all the tax you expect to owe on or before the due date.
Visit portal.ct.gov/myconneCT to file your extension electronically. Form CT‑1040 EXT extends only the time to file your return; it does not extend the time to pay your tax due. See Interest and Penalties if you do not pay all the tax due with your extension request.
You do not need to file Form CT‑1040 EXT if you:
- Have requested an extension of time to file your 2021 federal income tax return and you expect to owe no additional Connecticut income tax for the 2021 taxable year after taking into account any Connecticut income tax withheld from your wages, any Connecticut income tax payments you have made, and any Pass‑Through Entity Tax Credit (PE Tax Credit) you are allowed to claim; or
- Pay your expected 2021 Connecticut income tax due using a credit card on or before the due date.
You must file Form CT‑1040 EXT if you:
- Did not request an extension of time to file your federal income tax return, but you are requesting an extension of time to file your Connecticut income tax return; or
- Have requested an extension of time to file your federal income tax return but you expect to owe additional Connecticut income tax for 2021 and wish to submit a payment with Form CT‑1040 EXT.
If you file an extension request with a payment after the due date, generally April 15, DRS will deny your extension request.
U.S. Citizens Living Abroad
If you are a U.S. citizen or resident living outside the United States and Puerto Rico, or if you are in the armed forces of the United States serving outside the United States and Puerto Rico and are unable to file a Connecticut income tax return on time, you must file Form CT‑1040 EXT. You must also pay the amount of tax due on or before the original due date of the return.
Include with Form CT‑1040 EXT a statement that you are a U.S. citizen or resident living outside the United States and Puerto Rico, or in the armed forces of the United States serving outside the United States and Puerto Rico, and that you qualify for a federal automatic extension. If your application is approved, the due date is extended for six months.
If you received a federal extension of time to file beyond six months, to qualify for the federal foreign earned income exclusion and for the foreign housing exclusion or deduction, you may file your Connecticut return using the federal extension due date. Submit a copy of the approved federal Form 2350, Application for Extension of Time to File U.S. Income Tax Return, by attaching it to the front of your Form CT‑1040NR/PY.
Extension of Time to Pay
You may be eligible for a six-month extension of time to pay the tax due if you can show that paying the tax by the due date will cause undue hardship. You may request an extension by filing Form CT-1127, Application for Extension of Time for Payment of Income Tax, on or before the due date of the original return.
Attach Form CT-1127 to the front of Form CT-1040NR/PY or Form CT-1040 EXT and send it on or before the due date. As evidence of the need for extension, you must attach:
- An explanation of why you cannot borrow money to pay the tax due;
- A statement of your assets and liabilities; and
- An itemized list of your receipts and disbursements for the preceding three months.
If an extension of time to pay is granted and you pay all the tax due in full by the end of the extension period, a penalty will not be imposed. However, interest will accrue on any unpaid tax from the original due date. You should make payments as soon as possible to reduce the interest you would otherwise owe.
You must make estimated income tax payments if:
- Your Connecticut income tax, after taking into account your Connecticut tax withheld, and any Pass‑Through Entity Tax Credit (PE Tax Credit) you are allowed to claim, is $1,000 or more; and
- You expect your Connecticut income tax withheld (including any PE Tax Credit) to be less than your required annual payment for the 2022 taxable year.
Your required annual payment for the 2022 taxable year is the lesser of:
- 90% of the income tax shown on your 2022 Connecticut income tax return; or
- 100% of the income tax shown on your 2021 Connecticut income tax return if you filed a 2021 Connecticut income tax return that covered a 12-month period.
You do not have to make estimated income tax payments if:
- You were a Connecticut resident during the taxable year and you did not file a 2021 income tax return because you had no Connecticut income tax liability;
- You were a nonresident or part‑year resident with Connecticut‑sourced income during the taxable year and you did not file a 2021 income tax return because you had no Connecticut income tax liability.
If you were a nonresident or part-year resident and you did not have Connecticut-sourced income during the taxable year, your required annual payment is 90% of the income tax shown on your Connecticut income tax return.
If your income varies throughout the year, you may be able to reduce or eliminate the amount of your estimated tax payment for one or more periods by using the annualized income installment method. See Informational Publication 2018(11), A Guide to Calculating Your Annualized Estimated Income Tax Installments and Worksheet CT‑1040 AES.
You may file and pay your 2022 Connecticut estimated tax using the myconneCT. You may also make your payments by credit card. Visit the DRS website at portal.ct.gov/myconneCT for more information.
Use Form CT‑1040ES, Estimated Connecticut Income Tax Payment Coupon for Individuals, to make estimated Connecticut income tax payments for 2022 by mail. If you made estimated tax payments by mail in 2021, you will automatically receive coupons for the 2022 taxable year in mid‑January. They will be preprinted with your name, address, and the last four digits of the SSN. To ensure your payments are properly credited, use the preprinted coupons.
If you did not make estimated tax payments in 2021, use Form CT‑1040ES to make your first estimated income tax payment. If you file this form, additional preprinted coupons will be mailed to you. Form CT‑1040ES is available on the DRS website at portal.ct.gov/DRS.
To avoid making estimated tax payments, you may request that your employer or payer withhold additional amounts from your wages, pension, or annuity to cover the taxes on other income. You can make this change by giving your employer a revised Form CT‑W4, Employee’s Withholding Certificate or Form CT‑W4P, Withholding Certificate for Pension or Annuity Payments. For help in determining the correct amount of Connecticut income tax to be withheld from your income, see Informational Publication 2021(7), Is My Connecticut Withholding Correct?
2022 Estimated Tax Due Dates
Due dates of installments and the amount of required payments
April 15, 2022*
25% of your required annual payment
June 15, 2022
25% of your required annual payment (A total of 50% of your required annual payment should be paid by this date.)
September 15, 2022
25% of your required annual payment (A total of 75% of your required annual payment should be paid by the date.)
January 15, 2023
25% of your required annual payment (A total of 100% of your required annual payment should be paid by this date.)
An estimate is considered timely filed if received on or before the due date, or it the date shown by the U.S Postal Service cancellation mark is on or before the due date. Taxpayers who report on other than a calendar year basis should use their federal estimated tax installment due dates. If the due date falls on a Saturday, Sunday, or legal holiday, the return will be considered timely if filed by the next business day.
* The April 15, 2022 estimated payment will considered timely if made on Monday, April 18, 2022.
If you are a farmer or fisherman (as defined in IRC § 6654(i)(2)) who is required to make estimated income tax payments, you must make only one payment. Your payment is due on or before January 15, 2023, for the 2022 taxable year. The required installment is the lesser of 66 2/3% of the income tax shown on your Connecticut income tax return or 100% of the income tax shown on your Connecticut income tax return.
If you file a 2022 Connecticut income tax return on or before March 1, 2023 and pay in full the amount computed on the return as payable on or before that date, you will not be charged interest for underpayment of estimated tax.
Farmers or fishermen who use these special rules must complete and attach Form CT‑2210, Underpayment of Estimated Tax by Individuals, Trusts, and Estates, to their Connecticut income tax return to avoid being billed for interest on the underpayment of estimated income tax. Check Box D of Form CT‑2210, Part 1, and the box for Form CT‑2210 on the front of Form CT‑1040NR/PY. See Informational Publication 2021(2), Farmer’s Guide to Sales and Use Taxes, Motor Vehicle Fuels Tax, Estimated Income Tax, and Withholding Tax, or Informational Publication 2021(4), Commercial Fisherman’s Guide to Sales and Use Taxes and Estimated Income Tax.
Use Form CT‑2210 to calculate interest on the underpayment of estimated tax. Form CT‑2210 and detailed instructions are available from DRS. However, this is a complex form and you may prefer to have DRS calculate the interest. If so, do not file Form CT‑2210 and DRS will send you a bill.
Interest on Underpayment of Estimated Tax
You may be charged interest if you did not pay enough tax through withholding or 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 by the installment due date. This is true even if you are due a refund when you file your tax return. Interest is calculated separately for each installment. Therefore, you may owe interest for an earlier installment even if you paid enough tax later to make up the underpayment. Interest at 1% per month or fraction of a month will be added to the tax due until the earlier of April 15, 2022, or the date on which the underpayment is paid.
If you file a 2021 Connecticut income tax return on or before January 31, 2022 and pay in full the amount computed on the return as payable on or before that date, you will not be charged interest for failing to make the estimated payment due January 15, 2022.
Farmers or fishermen: see Special Rules for Farmers and Fishermen
In general, interest and penalty apply to any portion of the tax not paid on or before the original due date of the return.
If you do not pay the tax when due, you will owe interest at 1% per month or fraction of a month until the tax is paid in full.
Interest on underpayment or late payment of tax cannot be waived.
Penalty for Late Payment or Late Filing
The penalty for late payment or underpayment of income or use tax is 10% of the tax due. If a request for an extension of time to file has been granted, you can avoid a penalty for failure to pay the full amount due by the original due date if you:
- Pay at least 90% of the income tax shown to be due on the return on or before the original due date of the return; and
- Pay the balance due with the return on or before the extended due date. If you file your return electronically and pay your balance due by check, then your check must be postmarked on whichever is earlier: the date of acceptance of the electronic return or the extended due date.
If no tax is due, DRS may impose a $50 penalty for the late filing of any return or report that is required by law to be filed.
Penalty for Failure to File
If you do not file your return and DRS files a return for you, the penalty for failure to file is 10% of the balance due or $50, whichever is greater. If you are required to file Form CT‑1040X, Amended Connecticut Income Tax Return for Individuals, and fail to do so, a penalty may be imposed.
There are two ways to get your refund: Direct Deposit or Paper Check.
The fastest way to get your refund is to file your return electronically and elect direct deposit. Paper return filers may request direct deposit. The direct deposit option is not available to first-time Connecticut income tax filers.
For faster service, DRS recommends that taxpayers use direct deposit to a savings or checking account.
For returns filed on paper, you must allow 10 to 12 weeks from the date you mailed the return before checking on the status of your refund.
Your refund could be delayed if additional information or identity verification is required to prevent refund theft.
Anyone who receives a refund but has not filed a Connecticut income tax return must contact DRS immediately. Call the DRS Fraud Unit at 855-842-1441.
Option 1: Direct Deposit
Make your direct deposit successful by:
- Confirming your account number and routing number with your financial institution and entering them clearly on your tax return;
- Entering the direct deposit information separately for both your federal and state electronically filed returns; and
- Printing your software-prepared paper return only after you have entered the direct deposit information into the program.
Some financial institutions do not allow a joint refund to be deposited into an individual account.
DRS reserves the right to send a paper check on any requested refund.
Option 2: Paper Check
If you do not elect direct deposit, or are a first time filer, a refund check will be issued and refund processing may be delayed.
Electronically paying your taxes is easy, accurate, safe, and secure. It provides you with confirmation of receipt and reduces the possibility of errors, loss, or theft.
To make a direct payment visit the myconneCT at portal.ct.gov/DRS-myconneCT and follow the prompts. You can authorize DRS to transfer funds from your bank account (checking or savings) to a DRS account by entering your bank account number and your bank routing number.
You can file your return any time before the due date and designate the amount of payment and date of transfer. Your bank account will be debited on the date you indicate. You must pay the balance due on or before the due date to avoid penalty and interest.
If you elect to file your return electronically but make your payment of tax due with a paper check, you are required to remit your payment with Form CT‑1040V, 2021 Connecticut Electronic Filing Payment Voucher. Do not send a paper copy of your electronically filed return with the payment.
Pay by Credit Card or Debit Card
You may elect to pay your Connecticut income tax liability using a credit card (American Express®, Discover®, MasterCard®, VISA®) or comparable debit card. Your payment will be effective on the date that you make the charge. At the end of the transaction, you will receive a confirmation number for your records. As a reminder, even if you pay electronically, you must still file your return by the due date. Tax not paid on or before the due date will be subject to penalty and interest.