This information is not current and is being provided for reference purposes only
IP 2000(12)
Connecticut Income Tax Withholding Requirements for Connecticut Employees
This publication has been superseded by IP 2001(1)
Effective July 1, 2000 through December 31, 2000
Do not use this publication for taxable years beginning on or after January 1, 2001.
Is My Connecticut Withholding Correct?
PURPOSE
The purpose of this publication is to assist you in checking your Connecticut income tax withholding and, if necessary, in adjusting your withholding. You should check your withholding at least annually to ensure that you will have the correct amount of Connecticut income tax withheld from your wages.
WHY SHOULD I CHECK MY WITHHOLDING?
In general, your employer withholds Connecticut income tax from your wages in accordance with the information that you provided in completing Form CT-W4, Employee’s Withholding or Exemption Certificate. If the information that you have provided is no longer accurate, your employer may be withholding too much or too little Connecticut income tax from your wages. If too much tax is withheld, you lose the use of money that will not be returned to you until you file a return showing that you overpaid the tax. If too little tax is withheld, you may be subject to interest in addition to any tax that is due (even if you file your return on time and pay the tax shown on the return on time). You may adjust your withholding at any time by completing and filing a new Form CT-W4 with your employer.
WHEN SHOULD I CHECK MY WITHHOLDING?
You should check your withholding early in the year and compare the total tax to be withheld from your pay for the year with what you expect your Connecticut income tax liability will be for the year. You should check your withholding again during the year if the tax laws change or if any of the following apply to you:
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Your filing status has changed;
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You are married filing jointly and both you and your spouse work (See "Note" below);
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You have more than one job at a time; or
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You have nonwage income (such as interest, dividends, and capital gains) that is not subject to Connecticut income tax withholding.
NOTE: Spouses who are both employed and select filing status "A" on Form CT-W4 may refer to the Supplemental Table for a quick and easy guide to adjust their withholding. For a more precise calculation, follow the directions provided in the following sections.
HOW DO I CHECK MY WITHHOLDING?
You will need a pay statement for a full pay period showing the amount of Connecticut income tax withheld and a copy of your most recently filed Form CT-W4. (Your employer has your Form CT-W4 on file and can provide you with a copy.)
Step 1: Refer to Line 1 of your most recently filed Form CT-W4 to review your current filing status.
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If your filing status for 2000 remains the same, skip to Step 2.
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If your filing status is different, complete a new Form CT-W4 using your correct filing status.
Read all instructions for Form CT-W4 carefully to ensure that your withholding is correct. File this form with your employer. (It is not necessary to go on to Step 2.)
Step 2: Complete Worksheet 1 to estimate your total 2000 Connecticut income tax liability. Then complete Worksheet 2 to compare your projected total 2000 Connecticut income tax liability with your projected 2000 Connecticut income tax withholding.
Important: If you are a married individual filing jointly, you must combine your income with your spouse’s income and combine your withholding with your spouse’s withholding when completing the worksheets.
New Hires
Contact your employer's payroll officer to obtain the amount of Connecticut income tax to be withheld from your wages based upon your correct filing status.
WHAT IF I HAVE NONWAGE INCOME OR INCOME NOT SUBJECT TO WITHHOLDING?
If you have income that is not subject to withholding, you may wish to make estimated income tax payments instead of increasing your withholding. Informational Publication 99(35), Estimated Connecticut Income Taxes, explains this option. Estimated income tax payments are made by using Form CT-1040ES, 2000 Estimated Connecticut Income Tax Payment Coupon for Individuals.
CAUTION
If you owe more than $500 in Connecticut income tax after subtracting Connecticut income tax withheld, you may be subject to interest on the underpaid amount. Generally, if you do not prepay (through timely estimated tax payments or withholding, or both) the lesser of 100% of the income tax shown on your 1999 Connecticut income tax return, (if you filed a 1999 Connecticut income tax return that covered a 12 month period), or 90% of the income tax shown on your 2000 Connecticut income tax return, you may owe interest at the rate of 1% per month or fraction thereof of the underpaid amount. To avoid interest charges, be sure your withholding is as accurate as possible.
HOW DO I INCREASE MY WITHHOLDING?
If you wish to increase your withholding to include an additional amount on Line 8 of Worksheet 2, you should complete a new Form CT-W4 by following the steps below.
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Enter your filing status on Line 1 of the new Form CT-W4. (The filing status should be the same as the filing status on your most recently filed Form CT-W4);
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Enter the amount from Line 8 of Worksheet 2 on Line 2 of the new Form CT-W4;
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If there was an amount on Line 2 of your most recently filed Form CT-W4, add that amount to the amount on Line 8 of Worksheet 2 and enter the total on Line 2 of your new Form CT-W4.
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If there was an amount on Line 3 of your most recently filed Form CT-W4, subtract that amount from the amount on Line 8 of Worksheet 2 and enter the new amount on Line 2 (if a positive amount) or enter on Line 3 (if a negative amount).
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Enter all other required information on Form CT-W4; and
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Give the new Form CT-W4 to your employer.
Example: If Line 8 of Worksheet 2 shows an additional amount to be withheld of $5.00, and your most recently filed Form CT-W4 showed $3.00 on Line 2, enter $8.00 as a net addition to withholding on Line 2 of your new Form CT-W4.
More Than One Job
If you have more than one job (or you are a married individual filing jointly and your spouse also works), you can adjust your withholding for one or more of the jobs. You can apply the amount on Line 7 of Worksheet 2 to only one job or divide it between the jobs any way you wish. Then divide the amount you apply to a job by the number of paydays remaining in 2000 for that job. This will give you the additional amount to enter on Line 2 (or Line 3, if a reductional amount) of the new Form CT-W4 that you will file for that job.
HOW DO I DECREASE MY WITHHOLDING?
If too much Connecticut income tax will be withheld in 2000, you will receive a refund when you file your 2000 Connecticut income tax return. You may, however, decide to decrease your Connecticut income tax withholding by following the steps listed in the next column.
Important: Before decreasing the amount to be withheld, be sure you have enough Connecticut income tax withheld to meet your projected Connecticut income tax liability. If too little tax is withheld, you may be subject to interest in addition to any tax due. See Informational Publication 99(35), Estimated Connecticut Income Taxes.
If you wish to decrease your withholding by the amount on Line 8 of Worksheet 2, you should complete a new Form CT-W4 as follows.
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Enter your filing status on Line 1 of the new Form CT-W4 (The filing status should be the same as the filing status on your most recently filed Form CT-W4);
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Enter the amount from Line 8 of Worksheet 2 on Line 3 of the new Form CT-W4;
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If there was an amount on Line 2 of your most recently filed Form CT-W4, subtract that amount from the amount on Line 8 of Worksheet 2 and enter the difference on Line 2 (if a positive amount) or on Line 3 (if a negative amount).
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If there was an amount on Line 3 of your most recently filed Form CT-W4, add that amount to the amount on Line 8 of Worksheet 2 and enter the total on Line 3 of your new Form CT-W4.
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Enter all other required information on Form CT-W4; and
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Give the new Form CT-W4 to your employer.
Example: If your previously filed Form CT-W4 showed $3.00 on Line 2, and Line 8 of Worksheet 2 indicates that you should reduce your current withholding by $5.00, enter $2.00 as the net reduction on Line 3 of your new Form CT-W4.
AM I EXEMPT FROM CONNECTICUT WITHHOLDING?
You are exempt from Connecticut withholding if you expect to have no Connecticut income tax liability for the taxable year. You will have no Connecticut income tax liability if your Connecticut adjusted gross income is:
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$12,000 or less and you file as a married individual filing separately;
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$12,250 or less and you file as a single individual;
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$19,000 or less and you file as a head of household; or
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$24,000 or less and you file as a married individual filing jointly.
To claim exemption from Connecticut withholding, you must check Box 4 of Form CT-W4
WHEN WILL MY NEW FORM CT-W4 GO INTO EFFECT?
If the change is for the current year, your employer must withhold on the basis of your new Form CT-W4 no later than the start of the first payroll period ending on or after the 30th day following the day on which you give your employer your revised Form CT-W4. If the change is for next year, your new Form CT-W4 will not take effect until next year.
Worksheet 1 - Instructions
Line 1
Enter the amount of federal adjusted gross income you expect in 2000. You may use federal Form 1040ES as a worksheet to determine your federal adjusted gross income.
Line 2
Enter the total of your estimated allowable Connecticut additions. (See Form CT-1040 or Form CT-1040NR/PY, Schedule 1, Modifications to Federal Adjusted Gross Income, for information about allowable Connecticut modifications.)
Line 4
Enter the total of your estimated allowable Connecticut subtractions. (See Form CT-1040 or Form CT-1040NR/PY, Schedule 1, Modifications to Federal Adjusted Gross Income, for information about allowable Connecticut modifications.)
Line 5
Nonresidents and Part-Year Residents Only: If your Connecticut source income is greater than your Connecticut adjusted gross income, enter your Connecticut source income on this line.
Line 6
To calculate your estimated Connecticut income tax, complete Lines 6a through 6f. Enter your Connecticut income tax on Line 6.
Line 7
Nonresidents and Part-Year Residents Only: If your Connecticut source income is greater than or equal to your Connecticut adjusted gross income, enter 1.0000. If your Connecticut source income is less than your Connecticut adjusted gross income, complete the following calculation and enter the result on Line 7.
Connecticut Source Income =Line 7 Connecticut Adjusted Gross Income
(Line 5 of Worksheet 1)
Do not enter a number that is less than zero or greater than 1. If the result is less than zero, enter 0; if greater than 1, enter 1.0000. Round to four decimal places.
Line 9
Residents and Part-Year Residents Only: Enter estimated allowable credit for income taxes paid to other jurisdictions. Enter 0, if not applicable. (See instructions for Form CT-1040 or Form CT-1040NR/PY, Credit for Income Taxes Paid to Other Jurisdictions.)
Line 11
If you expect to owe federal alternative minimum tax in 2000, you may also owe Connecticut alternative minimum tax. Enter your estimated Connecticut alternative minimum tax liability. (See instructions for Form CT-6251, Connecticut Alternative Minimum Tax Return - Individuals.)
Line 13
Enter your estimated allowable adjusted net Connecticut minimum tax credit. If you are not entitled to a credit, or if you entered an amount on Line 11, enter 0. (See instructions for Form CT-8801, Credit for Prior Year's Connecticut Minimum Tax for Individuals, Trusts, and Estates.)
Line 14
Subtract Line 13 from Line 12. Use this amount to complete Worksheet 2.
EFFECT OF THIS DOCUMENT
An Informational Publication (IP) is a document that addresses frequently-asked questions about a current Department position, policy or practice, usually in a less technical format.
EFFECT ON OTHER DOCUMENTS
IP 2000(1) is modified and superseded.
RELATED FORMS AND PUBLICATIONS
Form CT-1040, Connecticut Resident Income Tax Return
Form CT-1040NR/PY, Connecticut Nonresident or Part-Year Resident Income Tax Return
Form CT-1040ES, 2000 Estimated Connecticut Income Tax Payment Coupon for Individuals
WORKSHEET 1
PROJECTED INCOME TAX LIABILITY FOR 2000 (See instructions)
NOTE: Enter combined amounts if married filing joint return.
| 1. Federal adjusted gross income (FAGI) you expect in 2000. (To determine this you may want to start with FAGI on your last year's return and add or subtract your expected changes.) | 1. |
| 2. Allowable Connecticut additions, if any (See instructions) | 2. |
| 3. Add Line 1 and Line 2 | 3. |
| 4. Allowable Connecticut subtractions, if any (See instructions) | 4. |
| 5. Connecticut adjusted gross income. (Subtract Line 4 from Line 3) Nonresidents and Part-Year Residents: Enter your income from Connecticut sources if greater than your Connecticut adjusted gross income. |
5. |
| 6. Connecticut income tax | ||
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a. Enter the amount from Line 5, above |
6a. | |
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b. Enter Personal Exemption (From Table A - Exemptions) |
6b. | |
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c. Connecticut Taxable Income (Subtract Line 6b from Line 6a - If less than zero, enter 0) |
6c. | |
|
d. Connecticut Income Tax (From Table B - Connecticut Income Tax) |
6d. | |
|
e. Enter Credit Percentage (From Table C - Personal Tax Credits) |
6e. | |
|
f. Multiply the amount on Line 6d by the percentage on Line 6e |
6f. | |
|
CONNECTICUT INCOME TAX (Subtract Line 6f from Line 6d) |
6. | |
| 7. Nonresidents and Part-Year Residents Only (See instructions) Residents: Enter 1.0000 |
7. | |
| 8. Multiply Line 7 by Line 6 | 8. | |
| 9. Credit for income taxes paid to other jurisdictions (See instructions) | 9. | |
| 10. Subtract Line 9 from Line 8 | 10. | |
| 11. Estimated Connecticut alternative minimum tax (See instructions) | 11. | |
| 12. Add Line 10 and Line 11 | 12. | |
| 13. Adjusted net Connecticut minimum tax credit (See instructions) | 13. | |
| 14. Subtract Line 13 from Line 12. This is your projected Connecticut income tax liability for 2000. Enter it here and on Line 1 of Worksheet 2. | 14. | |
WORKSHEET 2
PROJECTED INCOME TAX WITHHOLDING AND ESTIMATED PAYMENTS FOR 2000
NOTE: Enter combined amounts if married filing joint return.
|
2000 WITHHOLDING AND ESTIMATED PAYMENT WORKSHEET |
||
| 1. Enter your projected Connecticut income tax liability for 2000 from Line 14 of Worksheet 1. | 1. | |
| 2. Total Connecticut income tax withheld to date during 2000 from all your jobs. (You should be able to find your withholding to date on your last payslip or statement) | 2. | |
| 3. Connecticut income tax withholding expected for the rest of 2000. For each job, multiply the amount of Connecticut income tax now being withheld each payday by the number of paydays remaining in 2000 and enter the combined amount for all jobs. New Hires: Multiply the amount of Connecticut income tax to be withheld for each payday by the number of paydays remaining in 2000. |
3. | |
| 4. Total projected Connecticut income tax withholding for all paydays in 2000. (Add Line 2 and Line 3) | 4. | |
| 5. Enter estimated Connecticut income tax paid or expected to be paid for 2000 with Form CT-1040ES and any overpayment applied from your 1999 Connecticut income tax return. | 5. | |
| 6. Total Connecticut withholding and estimated payments. (Add Line 4 and Line 5) | 6. | |
| 7. Subtract Line 6 from Line 1 | 7. | |
| 8. Divide the amount on Line 7 by the number of paydays remaining in 2000 and enter the result. If the amount on Line 7 is a positive amount, you may be underwithheld. See How Do I Increase My Withholding? If the amount on Line 7 is a negative amount, you may be overwithheld. See How Do I Decrease My Withholding? | 8. | |
USE THESE TABLES ONLY UNTIL DECEMBER 31, 2000.
Use the filing status that you expect to report on your 2000 Connecticut income tax return and your Connecticut AGI (Line 5 of Worksheet 1) to find your exemption.
|
Single |
Married Filing Separately |
Head of Household |
Married Filing Jointly or Qualifying Widow(er) |
| CONNECTICUT AGI EXEMPTION | CONNECTICUT AGI EXEMPTION | CONNECTICUT AGI EXEMPTION | CONNECTICUT AGI EXEMPTION |
| More Than Less Than or Equal To |
More Than Less Than or Equal To |
More Than Less Than or Equal To |
More Than Less Than or Equal To |
| $ 0 $24,500 $25,500 $26,500 $27,500 $28,500 $29,500 $30,500 $31,500 $32,500 $33,500 $34,500 $35,500 $36,500 |
$24,500 $25,500 $26,500 $27,500 $28,500 $29,500 $30,500 $31,500 $32,500 $33,500 $34,500 $35,500 $36,500 and up |
$12,500 $11,250 $10,250 $ 9,250 $ 8,250 $ 7,250 $ 6,250 $ 5,250 $ 4,250 $ 3,250 $ 2,250 $ 1,250 $ 250 $ 0 |
$ 0 |
$24,000 $25,000 $26,000 $27,000 $28,000 $29,000 $30,000 $31,000 $32,000 $33,000 $34,000 $35,000 and up |
$12,000 $11,000 $10,000 $ 9,000 $ 8,000 $ 7,000 $ 6,000 $ 5,000 $ 4,000 $ 3,000 $ 2,000 $ 1,000 $ 0 |
$ 0 $38,000 $39,000 $40,000 $41,000 $42,000 $43,000 $44,000 $45,000 $46,000 $47,000 $48,000 $49,000 $50,000 $51,000 $52,000 $53,000 $54,000 $55,000 $56,000 |
$38,000 $39,000 $40,000 $41,000 $42,000 $43,000 $44,000 $45,000 $46,000 $47,000 $48,000 $49,000 $50,000 $51,000 $52,000 $53,000 $54,000 $55,000 $56,000 and up |
$19,000 $18,000 $17,000 $16,000 $15,000 $14,000 $13,000 $12,000 $11,000 $10,000 $ 9,000 $ 8,000 $ 7,000 $ 6,000 $ 5,000 $ 4,000 $ 3,000 $ 2,000 $ 1,000 $ 0 |
$ 0 $48,000 $49,000 $50,000 $51,000 $52,000 $53,000 $54,000 $55,000 $56,000 $57,000 $58,000 $59,000 $60,000 $61,000 $62,000 $63,000 $64,000 $65,000 $66,000 $67,000 $68,000 $69,000 $70,000 $71,000 |
$48,000 $49,000 $50,000 $51,000 $52,000 $53,000 $54,000 $55,000 $56,000 $57,000 $58,000 $59,000 $60,000 $61,000 $62,000 $63,000 $64,000 $65,000 $66,000 $67,000 $68,000 $69,000 $70,000 $71,000 and up |
$24,000 $23,000 $22,000 $21,000 $20,000 $19,000 $18,000 $17,000 $16,000 $15,000 $14,000 $13,000 $12,000 $11,000 $10,000 $ 9,000 $ 8,000 $ 7,000 $ 6,000 $ 5,000 $ 4,000 $ 3,000 $ 2,000 $ 1,000 $ 0 |
TABLE B - CONNECTICUT INCOME TAX
Use the filing status that you expect to report on your 2000 Connecticut income tax return and your Connecticut taxable income (Line 6c of Worksheet 1) to find your tax.
|
Single/Married Filing Separately |
Head of Household |
Married Filing Jointly or Qualifying Widow(er) |
| If the amount on Line 6c of Worksheet 1 is:
Less than or equal to $10,000, multiply by .03. More than $10,000, multiply the excess over $10,000 by .045 and add $300.00. |
If the amount on Line 6c of Worksheet 1 is:
Less than or equal to $16,000, multiply by .03. More than $16,000, multiply the excess over $16,000 by .045 and add $480.00. |
If the amount on Line 6c of Worksheet 1 is:
Less than or equal to $20,000, multiply by .03. More than $20,000, multiply the excess over $20,000 by .045 and add $600.00. |
| EXAMPLE: if the amount on Line 6c is $13,000 enter $435.00 on Line 6d.
($13,000 - $10,000 = $3,000 |
EXAMPLE: if the amount on Line 6c is $20,000 enter $660.00 on Line 6d.
($20,000 - $16,000 = $4,000 |
EXAMPLE: if the amount on Line 6c is $22,500 enter $712.50 on Line 6d.
($22,500 - $20,000 = $2,500 |
TABLE C - PERSONAL TAX CREDITS
Use the filing status that you expect to report on your 2000 Connecticut income tax return and your Connecticut AGI (Line 5 of Worksheet 1) to determine your credit.
| Single | Married Filing Separately | Head of Household | Married Filing Jointly or Qualifying Widow(er) | ||||||||||||
| CONNECTICUT AGI |
DECIMAL AMOUNT |
CONNECTICUT AGI |
DECIMAL AMOUNT |
CONNECTICUT AGI |
DECIMAL AMOUNT |
CONNECTICUT AGI |
DECIMAL AMOUNT |
||||||||
| More Than | Less Than or Equal To | More Than | Less Than or Equal To | More Than | Less Than or Equal To | More Than | Less Than or Equal To | ||||||||
|
$12,250 |
$15,300 |
.75 .70 .65 .60 .55 .50 .45 .40 .35 .30 .25 .20 .15 .14 .13 .12 .11 .10 .09 .08 .07 .06 .05 .04 .03 .02 .01 .00 |
$12,000 |
$15,000 |
.75 .70 .65 .60 .55 .50 .45 .40 .35 .30 .25 .20 .15 .14 .13 .12 .11 .10 .09 .08 .07 .06 .05 .04 .03 .02 .01 .00 |
$19,000 |
$24,000 |
.75 .70 .65 .60 .55 .50 .45 .40 .35 .30 .25 .20 .15 .14 .13 .12 .11 .10 .09 .08 .07 .06 .05 .04 .03 .02 .01 .00 |
$24,000 |
$30,000 |
.75 .70 .65 .60 .55 .50 .45 .40 .35 .30 .25 .20 .15 .14 .13 .12 .11 .10 .09 .08 .07 .06 .05 .04 .03 .02 .01 .00 |
EMPLOYEE INSTRUCTIONS
You should check your withholding each year to ensure that you will have the correct amount of tax withheld from your wages by the end of the year. Even if you have previously completed Form CT-W4, Employee’s Withholding or Exemption Certificate, you should check to see if you will have the correct amount of Connecticut tax withheld for the year.
You are expected to pay Connecticut income tax as income is earned or received during the year. In order for your employer to withhold Connecticut income tax from your wages, you must complete Form CT-W4, and provide it to your employer(s). Form CT-W4 provides your employer with the necessary information to withhold the correct amount of Connecticut income tax from your wages to insure that you will not be underwithheld. If you owe more than $500 in Connecticut income tax over and above what has been withheld from your income for the 2000 taxable year, you may be subject to interest on the underpayment at the rate of 1% per month or fraction thereof.
Informational Publication 2000(12), Is My Connecticut Withholding Correct?, can help you determine if enough Connecticut income tax is being withheld.
Changes in Your Circumstances
If during the taxable year your circumstances change, such as you receive a bonus or change your filing status, you must furnish your employer with a new Form CT-W4 within 10 days of the change.
Nonresident Employees Working Partly Within and Partly Outside of Connecticut
If you work partly within and partly outside of Connecticut for the same employer you should also complete Form CT-W4NA, Employee’s Withholding or Exemption Certificate - Nonresident Apportionment, and provide it to your employer. The information on Form CT-W4NA together with the information on Form CT-W4 will help your employer determine how much to withhold from your wages for services performed within Connecticut. Form CT-W4NA is available from your employer or from the DRS Forms Unit.
Special Rules for Certain Married Individuals
If you are a married individual filing jointly and you and your spouse both select FILING STATUS "A", you may have too much or too little Connecticut income tax withheld from your pay if withholding is based on the withholding tables. This is because the phaseout of the personal exemption and credit is based on your combined incomes. The withholding tables cannot reflect your exact withholding requirement without considering your spouse’s income.
To minimize this problem, use the SUPPLEMENTAL TABLE of this form to adjust your withholding.
You are not required to use this table. However, if you choose to adjust your withholding, find both your income and your spouse’s income on the chart and follow the instructions.
NOTE: Do not use the supplemental table to adjust your withholding if you use the worksheet in Informational Publication 2000(12).
EMPLOYER INSTRUCTIONS
Employers are required to keep a Form CT-W4 in their files for each employee. See Informational Publication 2000(11), Connecticut Circular CT, Employer’s Tax Guide, for complete instructions.
Employers must also file copies of Form CT-W4 with DRS and the Department of Labor (DOL) for certain employees as listed below:
Report Certain Employees Claiming Exemption From Withholding to DRS
Employers are required to file copies of Form CT-W4 with DRS for certain employees claiming exemption from Connecticut withholding. See Informational Publication 2000(11), for further information. Mail copies of exempt Forms CT-W4 meeting the conditions listed of Informational Publication 2000(11), with Form CT-941, Connecticut Quarterly Reconciliation of Withholding, to DRS.
Report New and Rehired Employees to DOL
New employees are defined as workers not previously employed by your business, as well as workers who are hired after having been separated from your business for a period of more than six months.
Conn. Gen. Stat. §31-254(b) requires employers with offices in Connecticut or transacting business in Connecticut to report names, addresses, and Social Security Numbers of new employees to DOL within 20 days from the date of hire to assist in the enforcement of child support obligations. Mail copies of Form CT-W4 for those employees only to DOL at the address listed below or FAX to the number listed below.
DOL may use information reported on this form in a manner consistent with its governmental powers and duties. For more information on DOL requirements or for alternate reporting options, call DOL at 860-263-6310.
For new or rehired employees; send or fax Form CT-W4 to:
CT Department of Labor
Office of Research, Form CT-W4
200 Folly Brook Boulevard
Wethersfield CT 06109
Fax: 1-800-816-1108
FOR FURTHER INFORMATION
Call the Department of Revenue Services during business hours, Monday through Friday:
-
1-800-382-9463 (toll-free within Connecticut), or
-
860-297-5962 (from anywhere).
TTY, TDD, and Text Telephone users only may transmit inquiries 24 hours a day by calling 860-297-4911.
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
- Telephone: Call 1-800-382-9463 (toll-free within Connecticut) and select Option 2 or 860-297-4753 (from anywhere).
SCHEDULE 1, MODIFICATIONS TO FEDERAL ADJUSTED GROSS INCOME
(Form CT-1040 or Form CT-1040NR/PY)
Enter all amounts as positive numbers. For more complete information, see the instructions to Form CT-1040 or Form CT-1040NR/PY.
Interest on State and Local Government Obligations Other Than Connecticut
Enter on Worksheet 1, Line 2 the total amount of exempt-interest dividends received from a mutual fund that are derived from state and municipal government obligations, other than obligations of the State of Connecticut or its municipalities. If the exempt-interest dividends are derived from obligations of Connecticut and other states, enter only the percentage derived from non-Connecticut obligations. Do not enter exempt-interest dividends derived from government obligations of Puerto Rico, Guam, American Samoa, and U.S. Virgin Islands.
Exempt-Interest Dividends From a Mutual Fund Derived From State or Municipal Government Obligations Other Than Connecticut
Enter on Worksheet 1, Line 2 the total amount of exempt-interest dividends received from a mutual fund that are derived from state and municipal government obligations, other than obligations of the State of Connecticut or its municipalities. If the exempt-interest dividends are derived from obligations of Connecticut and other states, enter only the percentage derived from non-Connecticut obligations. Do not enter exempt-interest dividends derived from government obligations of Puerto Rico, Guam, American Samoa, and U.S. Virgin Islands.
Shareholder’s Pro Rata Share of S Corporation Nonseparately Computed Income or Loss
If you are a shareholder of an S corporation that is subject to the Connecticut Corporation Business Tax, and the S corporation’s taxable year for federal income tax purposes is the calendar year, multiply 30% of your pro rata share of the S corporation’s nonseparately computed income or loss by the S corporation’s Connecticut corporation business tax apportionment percentage and enter this amount on Worksheet 1, Line 2 (if loss) or on Worksheet 1, Line 4 (if income). If the S corporation’s taxable year for federal income tax purposes is other than the calendar year, use 55% instead of 30%. Your pro rata share of the S corporation’s nonseparately computed income or loss will be reported on federal Form 1120S, Schedule K-1. This form and the Connecticut corporation business tax apportionment percentage will be furnished to you by the S corporation.
Important: If any federal limitations apply, add back only 30% of the net loss (55% if the S corporation’s taxable year is other than the calendar year) included on federal Schedule E, multiplied by the S corporation’s Connecticut corporation business tax apportionment percentage. If you have deductible losses from a prior year or other adjustments, subtract only 30% of the net income (55% if the S corporation’s taxable year is other than the calendar year) included on the federal Schedule E, multiplied by the S corporation’s Connecticut corporation business tax apportionment percentage.
Taxable Amounts of Lump-Sum Distributions From Qualified Plans Not Included in Federal AGI
If you filed federal Form 4972, Tax On Lump-Sum Distributions, with your federal Form 1040 to compute the tax on any part of a distribution from a qualified plan, enter on Worksheet 1, Line 2 that part of the distribution. Do not enter any part of the distribution reported on Line 11a of federal Form 1040A or Line 16a of federal Form 1040 or on Schedule D of federal Form 1040.
Beneficiary’s Share of Connecticut Fiduciary Adjustment
If you have any income from an estate or trust, any Connecticut modifications (that is, the Connecticut fiduciary adjustment) that apply to such income will be shown on Form CT-1041, Connecticut Income Tax Return for Trusts and Estates, Schedule B, Column 5. Your share of these modifications should be provided to you by the fiduciary. If your share of these modifications is an amount greater than zero, enter the amount on Worksheet 1, Line 2. If the amount is less than zero, enter the amount on Worksheet 1, Line 4.
If you are a beneficiary of more than one trust or estate, enter the net amount of all such modifications, if greater than zero, on Worksheet 1, Line 2.
Loss on Sale of Connecticut State and Local Government Bonds
Enter on Worksheet 1, Line 2 the total losses from the sale or exchange of notes, bonds or other obligations of the State of Connecticut or its municipalities used in determining gain (loss) for federal income tax purposes, whether or not the entire loss is used in computing federal adjusted gross income.
Interest on United States Government Obligations
Enter on Worksheet 1, Line 4 the total amount of interest income (to the extent includible in federal adjusted gross income) derived from U.S. government obligations, which federal law prohibits states from taxing (for example, U.S. government bonds such as Savings Bonds Series EE and Series HH, and U.S. Treasury bills and notes.)
For Series EE U.S. Savings Bonds, you may include only the amount of interest subject to federal income tax after exclusion of the amounts reported on federal Form 8815. In general, you will report the net taxable amount on Schedule B of federal Form 1040 or Schedule 1 of federal Form 1040A.
Important: Do not enter the amount of interest income derived from Federal National Mortgage Association (Fannie Mae) bonds, Government National Mortgage Association (Ginnie Mae) bonds, and Federal Home Loan Mortgage Corporation (Freddie Mac) securities. Federal law does not prohibit states from taxing interest income derived from these obligations, and this interest income is taxable for Connecticut income tax purposes. Do not enter the amount of interest paid on any federal income tax refund.
Exempt Dividends From Certain Qualifying Mutual Funds Derived From U.S. Government Obligations
Enter on Worksheet 1, Line 4 the total amount of exempt dividends received from a qualifying mutual fund that are derived from U.S. government obligations. A mutual fund is a qualifying fund if, at the close of EACH quarter of its taxable year, at least 50% of the value of its assets consists of U.S. government obligations. The percentage of dividends that are exempt dividends should be reported to you by the mutual fund.
Important: Do not enter the amount of dividend income derived from Federal National Mortgage Association (Fannie Mae) bonds, Government National Mortgage Association (Ginnie Mae) bonds and Federal Home Loan Mortgage Corporation (Freddie Mac) securities. Federal law does not prohibit states from taxing income derived from these obligations, and this income is taxable for Connecticut income tax purposes.
Social Security Benefit Adjustment
If you will file a federal income tax return as a single individual or as a married individual filing separately and you expect your federal adjusted gross income will be less than $50,000, enter on Worksheet 1, Line 4 the amount of federally taxable Social Security benefits reported on federal Form 1040, Line 20b or federal Form 1040A, Line 13b. If you will file a federal income tax return as a married individual filing jointly or as a head of household and you expect your federal adjusted gross income will be less than $60,000, enter on Worksheet 1, Line 4 the amount of federally taxable social security benefits reported on federal Form 1040, Line 20b or federal Form 1040A, Line 13b. If you expect your federal adjusted gross income will be above the threshold for your filing status, complete the Social Security Benefit Adjustment Worksheet included with Form CT-1040 or Form CT-1040NRPY and enter the result on Worksheet 1, Line 4.
Refunds of State and Local Income Taxes
Enter on Worksheet 1, Line 4 the amount of taxable refunds of state and local income taxes reported on Line 10 of your federal Form 1040. If an amount is not reported on Line 10 of your federal Form 1040, or if you filed federal Forms 1040A, 1040EZ, or TeleFile Tax Record, enter 0.
Tier 1 and Tier 2 Railroad Retirement Benefits and Supplemental Annuities
If you received Tier 1 or Tier 2, or both, Railroad Retirement benefits and supplemental annuities during 2000, you may deduct the amount that will be included in your federal adjusted gross income. Enter on Worksheet 1, Line 4 the amount of benefits reported on federal Form 1040, Line 16b or Line 20b, or federal Form 1040A, Line 11b or Line 13b. Enter the amount of railroad unemployment benefits, including sickness benefits paid in lieu of unemployment benefits, to the extent included in your federal adjusted gross income.
Gain on Sale of Connecticut State and Local Government Bonds
Enter on Worksheet 1, Line 4 the total of all gains from the sale or exchange of notes, bonds or other obligations of the State of Connecticut or its municipalities used in determining gain (loss) for federal income tax purposes.
IP 2000(12)
Withholding
Issued: July 1, 2000
Replaces: IP 00(1)