Application of the Connecticut Income Tax to
the 2001 Federal Advance Payments
Purpose: This Announcement notifies Connecticut taxpayers that the 2001 advance payments that are being issued by the United States Department of the Treasury (“the Treasury”) are not subject to the Connecticut income tax.
Effective Date: Upon issuance.
Statutory Authority: Conn. Gen. Stat. §12-701(a)(19) and (20).
Taxpayers will be entitled to a tax credit on their 2001 federal income tax return of 5 percent (the difference between the old 15 percent rate and the new 10 percent rate). The maximum credit is $300 for single individuals, $500 for heads of households, and $600 for married couples filing joint returns. Most taxpayers will receive this credit in advance in the form of a payment issued during July, August, and September 2001, by the Treasury.
Taxability of the Federal Advance Payments for Connecticut Income Tax Purposes:
Since the advance payments are not included in federal adjusted gross income, the checks are not subject to the Connecticut income tax.
- Visiting the IRS Website at: www.irs.ustreas.gov;
- Calling 1-800-829-4477 (for prerecorded information); or
- Calling 1-800-829-1040 (to speak with an IRS representative).
Effect on Other Documents: None.
Effect of This Document:
For Connecticut Tax Information: Please call DRS during business hours, Monday through Friday:
- 1-800-382-9463 (toll-free within Connecticut), or
- 860-297-5962 (from anywhere)
For Connecticut Forms and Publications: Forms and publications are available all day, seven days a week:
Internet: Preview and download forms and publications from the DRS Web site: http://www.ct.gov/drs.
Telephone: Call 860-297-4753 (from anywhere), or 1-800-382-9463 (toll-free within Connecticut) and select Option 2 from a touch-tone phone.
Federal Advance Payments