The Connecticut Income Tax:
Supplemental Information for Senior Citizens
This Informational Publication has been superseded by IP 91(1.2)
PURPOSE: In October, 1991, the Department issued IP 91(1.1), the Connecticut Income Tax: Supplemental Information for Senior Citizen. IP 91(1.1) is an updated version that includes changes applicable to income years beginning on or after January 1, 1992. This informational publication is intended as a general guide to the Connecticut income tax for senior citizens. While it does not answer every question about the tax, it will provide answers to some of the most common inquiries.
I am a resident of Connecticut who is retired. My only income is from a pension, social security benefits and a small amount of interest. Must I pay Connecticut income tax?
You will only owe tax on the portion of your Connecticut adjusted gross income which exceeds your personal exemption. In general, your Connecticut adjusted gross income includes those items of your income that is subject to federal income tax, including any portion of social security benefits that is subject to federal income tax.
Is any type of income exempt from Connecticut income tax?
Interest from U.S. Government obligations such as U.S. Savings Bonds or Treasury Notes and interest from State of Connecticut bonds or Connecticut municipal bonds are exempt from Connecticut income tax.
What are the Connecticut personal exemptions?
An unmarried person or a married person filing separately for federal income tax purposes whose Connecticut adjusted gross income is $24,000 or less is entitled to an exemption of $12,000. Married persons filing jointly for federal income tax purposes whose Connecticut adjusted gross income is $48,000 or less are entitled to an exemption of $24,000. An unmarried person filing as a head of household for federal income tax purposes whose Connecticut adjusted gross income is $38,000 or less is entitled to an exemption of $19,000. The exemptions are phased out as income levels increase.
How do I calculate my Connecticut income tax liability?
The tax is figured by starting with your Connecticut adjusted gross income:
Step 1. Deduct the personal exemption;
Step 2: Multiply by the tax rate of 4.5% (0.045);
Step 3: Deduct the personal tax credit.
EXAMPLE: Taxpayer is married filing jointly.
$30,000.00 Federal Adjusted Gross Income
-24,000.00 Personal exemption
6,000.00 Connecticut taxable income
x 0.045 Tax Rate
- 202.50 Personal credit ($270 x 75%)
$ 67.50 Tax due
I have moved into (or out of) Connecticut during the taxable year. Do I owe Connecticut income tax?
Anyone who moves into (out of) the state is a part-year resident and may owe Connecticut income tax.
I am resident of another state but receive a pension from my former Connecticut employer. Must I pay Connecticut income tax on that income?
Pension income from a federally qualified plan paid to a nonresident is not currently subject to Connecticut income tax. (If the income is from a nonqualified plan, it may be subject to Connecticut income tax.)
Interest earned by a nonresident individual from a Connecticut bank is, likewise, not subject to Connecticut income tax.
If I am a Connecticut resident, will Connecticut income tax be withheld from my pension benefits?
Withholding of Connecticut income tax is available if your pension is paid by a company doing business in Connecticut. Your pension payer will send you Form CT-W4P. If you want Connecticut income tax withheld, complete the form, and return it to the pension plan administrator.
Retired federal civil service employees may request Connecticut income tax withholding for pension payments made on or after January 1, 1993 by completing Form CT-W4CS and returning it to this Department.
Must I file estimated income tax returns?
If you will owe more than $200 in Connecticut income tax over and above any Connecticut income tax withheld during the taxable year, you must make estimated tax payments using Form CT-1040ES. Generally, estimated payments must be made in four installments: April 15, June 15, September 15, and January 15. (Fiscal year filers: follow federal filing dates.)
What if I am late in making my estimated tax payments?
Penalty and interest will be assessed on late payment or underpayment of estimated income tax. You must pay the lesser of 90% of your current year's income tax or 100% of your prior year's Connecticut income tax (recalculated using the current year's rate.) Payments may be made through estimated payments, withholding payments or a combination of both.
May I deduct my Connecticut income tax in calculating my federal income tax liability?
If you itemize your deductions for federal income tax purposes, all payments of Connecticut income tax made on or before December 31 of the taxable year are deductible for federal income tax purposes.
What about the Connecticut capital gains, dividends and interest tax?
For taxable years beginning on or after January 1, 1992, there is no longer a separate state tax on capital gains, dividends and interest income. Capital gains, dividends or interest income that is included in Connecticut adjusted gross income remains subject to the Connecticut income tax.
EFFECT ON OTHER DOCUMENTS:
IP 91(1), issued 10/91, is superseded by IP 91(1.1) and may not be relied upon on or after the date of issuance of this informational publication.
RELATED FORMS AND PUBLICATIONS:
IP 92(3.1), Personal Taxes
IP 92(4.1), State Tax Tips for Senior Citizens
IP 92(5.2), Estimated Connecticut Income Taxes for 1993
Form CT 1040ES, Individual Estimated Income Tax Coupon
FOR FURTHER INFORMATION: To order forms and publications or for further information, call the Department of Revenue Services at 860-297-5962 (Hartford area or out-of-state) or 1-800-382-9463 (in-state). Forms and publications may be ordered through voice-mail 24 hours a day by choosing Option 3 on your touch tone telephone.
Electronic Delivery Options: You can also obtain tax forms and publications 24 hours a day from our site on the World Wide Web at http://www.ct.gov/drs. Telecommunications Device for the Deaf (TDD/TT) users only call 860-297-4911 during business hours.
Replaces: IP 91(1), issued: 10/91