2020 Form Updates
The following is a list of revisions to the 2020 forms and instructions.
Date: April 15, 2021
Product Title: 2020 Form CT-1040NR/PY, Connecticut Nonresident and Part-Year Resident Income Tax Return Instructions
Revision Date: April 15, 2021
2020 Form CT-1040NR/PY Instructions, Page 24, Schedule 2 – Credit for Income Taxes Paid to Qualifying Jurisdictions; Income Derived From or Connecticut With Sources Within a Qualifying Jurisdiction, second bullet is replaced to read as follows:
For taxable year 2020 only, compensation received for personal services rendered while working remotely from Connecticut if another qualifying jurisdiction imposed tax on such compensation. These employees should retain documentation detailing their specific facts and circumstances for 2020. This documentation should not be submitted with the employee’s return.
Page 31, Employee Apportionment Worksheet Instructions; Who May Not Apportion Income is updated to read as follows:
New for Tax Year 2020 - A nonresident employee’s compensation for personal services rendered while working remotely from outside of Connecticut is not considered Connecticut-sourced income, regardless of the employee’s state of residence. See Taxpayer Services Special Bulletin (TSSB) 2021-1, Taxpayer Services Division Update to Commissioner’s Bulletin of March 4, 2021. A nonresident employee may have received a 2020 Form W-2 from their employer sourcing such compensation to Connecticut, and Connecticut income tax may have been withheld.
Connecticut will not require employers to issue a corrected Form W-2 in this situation. Affected employees who do not receive a corrected Form W-2 should apportion their income using the Employee Apportionment Worksheet. Enter the amount of Connecticut income tax withheld, as reported on Form W-2, on Form CT-1040NR/PY, Line 20. These employees should retain documentation detailing specific facts and circumstances for 2020. This documentation should not be submitted with the employee’s return.
Date: April 15, 2021
Product Title: 2020 Form CT-1040, Connecticut Resident Income Tax Return Instructions
Revision Date: April 15, 2021
2020 Form CT-1040 Instructions, Page 27, Schedule 2 – Credit for Income Taxes Paid to Qualifying Jurisdictions; Income Derived From or Connected with Sources within a Qualifying Jurisdiction, second bullet is replaced to read as follows:
For taxable year 2020 only, compensation received for personal services rendered while working remotely from Connecticut if another qualifying jurisdiction imposed tax on such compensation. These employees should retain documentation detailing specific facts and circumstances for 2020. This documentation should not be submitted with the employee’s return.
Date: March 17, 2021
Product Title: Schedule CT-CHET, Connecticut Higher Education Trust (CHET) 529 College Savings Plan Contribution
Revision Date: March 17, 2021
Updated Schedule CT-CHET – Fidelity Investments Account Number, URL and instructions
- Fidelity Investments Account Number
Original Reads: 39900000 Corrected Reads: 39900001 - Corrected URL Reads: www.fidelity.com/tax-information/direct-deposit
- Instruction Added: Use the Fidelity prefix 39900001 followed by your 9-character Fidelity brokerage or 529 plan account number.
Date: March 1, 2021
Product Title: 2020 Form CT-1040NR/PY, Connecticut Nonresident and Part-Year Resident Income Tax Return Instructions, Schedule CT-1040AW Instructions, Page 33.
Revision Date: March 1, 2021
Page 33, Schedule CT-1040AW Instructions, Part 2 - Adjustments to Income
NEW FOR TAX YEAR 2020: The CARES Act allows taxpayers using the standard deduction to deduct certain charitable contributions made in tax year 2020. Taxpayers taking this deduction should include the amount from federal Form 1040, Line 10b, or federal Form 1040‑SR, Line 10b, on Schedule CT-1040AW, Line 27, Tuition and Fees.