Connecticut Tax Instruction Booklet: CT-1040 for Nonresidents/Part-Year Residents
Extracted from PDF file 2020-connecticut-ct-1040nrpy-instructions.pdf, last modified February 2021
Tax Instruction Booklet: CT-1040 for Nonresidents/Part-Year ResidentsConnecticut 2020 Nonresident and FORM Part-Year Resident CT‑1040 Income Tax NR/PY This booklet contains information or instructions for the following forms and schedules: • Form CT‑1040NR/PY • Schedule CT‑SI • Schedule CT‑1040AW • Schedule CT‑PE • Schedule CT‑CHET • Tax Tables • Tax Calculation Schedule • Use Tax Information Return Instructions Dear Taxpayer, 2020 has been a challenging year to say the least. Rest assured, however, that the tax professionals at the Connecticut Department of Revenue Services (DRS) stand ready to provide our customers with world-class service. All of us at DRS have been busy reinventing how the agency delivers assistance to our citizens. The COVID-19 pandemic has forced public servants to reflect on how we can improve the delivery of services in a changing environment. I think you will find the DRS approach is more efficient and convenient. The instructions in this booklet and our forms that are available on our website at portal.ct.gov/DRS contain everything you will need to complete your 2020 Connecticut state income tax filing. Please remember that electronic filing is the easiest and most efficient way to file. In fact, if you are expecting a refund, electronic filing is the sure way to receive that refund as quickly as possible. All of your electronic filing options are contained in these instructions. Your feedback is critically important, especially during these challenging times. I encourage you to let us know how we are doing. We welcome your ideas and suggestions. You may send an email or call to personally speak to a Taxpayer Services representative. Your input is a valuable component of improving how we do business. Sincerely, John Biello Acting Commissioner of Revenue Services File early to protect your refund from identity thieves. Table of Contents What’s New ������������������������������������������������������ 3 Completing Form CT-1040NR/PY������������������ 15 Increase to Subtraction Modification of Pension and Annuity Income ���������������������������������������������������� 3 Check Box for Federal Form 1310 Filers ������������������������ 3 Estimated Payment Deadline Extensions for Tax Year 2020�������������������������������������������������������������� 3 1. Taxpayer Information���������������������������������������������� 15 2. Calculate Your Tax�������������������������������������������������� 15 3. Payments���������������������������������������������������������������� 17 4. Overpayment ���������������������������������������������������������� 18 5. Amount You Owe���������������������������������������������������� 18 6. Sign Your Return ���������������������������������������������������� 18 Order of Attachments ���������������������������������������������������� 19 Filing Your Return���������������������������������������������������������� 19 Recordkeeping�������������������������������������������������������������� 19 Copies of Returns���������������������������������������������������������� 19 Taxpayer Service Center (TSC) ���������������������� 3 Important Information�������������������������������������� 4 Tax Assistance ���������������������������������������������������������������� 4 Forms and Publications �������������������������������������������������� 4 Connecticut Form 1099-G������������������������������������������������ 4 Avoid Delaying Your Refund�������������������������������������������� 4 Who Must File Form CT-1040NR/PY������������������������������ 5 Relief From Joint Liability������������������������������������������������ 6 Title 19 Recipients������������������������������������������������������������ 6 Deceased Taxpayers ������������������������������������������������������ 6 Special Information for Nonresident Aliens���������������������� 6 Resident, Part-Year Resident, or Nonresident ���������������� 7 Military Personnel Filing Requirements �������������������������� 7 Connecticut Adjusted Gross Income�������������������������������� 8 Items Subject to Special Accrual�������������������������������������� 9 Additional Forms and Schedules You May Have to Complete �������������������������������������������������������������� 10 When to File������������������������������������������������������������������ 10 Extension Requests ������������������������������������������������������ 10 Filing the Connecticut Income Tax Return Electronically ������������������������������������������������������������ 11 Mailing Addresses for Form CT‑1040NR/PY ���������������� 11 Estimated Tax Payments for Tax Year 2021������������������ 11 Filing Form CT-2210������������������������������������������������������ 12 Interest and Penalties���������������������������������������������������� 12 Refund Information�������������������������������������������������������� 13 Refund Status���������������������������������������������������������������� 13 Protecting Taxpayer Security ���������������������������������������� 13 Income Tax Fraud���������������������������������������������������������� 13 Nonobligated Spouse���������������������������������������������������� 13 Payment Options ���������������������������������������������������������� 14 Income Tax Credit���������������������������������������������������������� 14 Economic Nexus������������������������������������������������������������ 14 Page 2 Form CT‑1040NR/PY Schedules�������������������� 20 Schedule 1 - Modifications to Federal Adjusted Gross Income������������������������������������������������������������ 20 Schedule 2 - Credit for Income Taxes Paid to Qualifying Jurisdictions (Part-Year Residents Only) ������������������ 24 Schedule 2 - Worksheet Instructions ���������������������������� 25 Schedule CT-SI Instructions������������������������������������������ 27 Employee Apportionment Worksheet Instructions �������� 31 Schedule CT-1040AW Instructions�������������������������������� 32 Schedule CT-1040BA���������������������������������������������������� 33 Schedule 3 - Individual Use Tax Line Instructions�������������������������������������������������� 34 Sample Use Tax Table������������������������������������ 35 Connecticut Individual Use Tax Worksheet���������������������������������������������������� 35 Amended Returns������������������������������������������ 36 Contributions to Designated Charities�������� 37 2020 Connecticut Income Tax Tables ���������� 39 Tax Calculation Schedule������������������������������ 49 Table A - Personal Exemptions�������������������������������������� 49 Table B - Initial Tax Calculation�������������������������������������� 50 Table C - Tax Rate Phase-Out Add-Back���������������������� 51 Table D - Tax Recapture������������������������������������������������ 52 Table E - Personal Tax Credits�������������������������������������� 53 What’s New Increase to Subtraction Modification of Pension and Annuity Income Estimated Payment Deadline Extensions for Tax Year 2020 Check Box for Federal Form 1310 Filers Form CT-2210, Underpayment of Estimated Tax by Individuals, Trusts, and Estates, has been updated for the 2020 tax year to account for theses deadline extensions. Ensure you are using the 2020 form to properly calculate the amount of interest due. For the taxable year beginning on January 1, 2020, the subtraction modification of pension and annuity income increased from 14% to 28% of any pension or annuity income received for the taxable year. See Line 50b instructions on Page 23 for more information. For the taxable year beginning on January 1, 2020, Form CT‑1040NR/PY has been updated to provide a check box for filers of federal Form 1310, Statement of Person Claiming Refund Due a Deceased Taxpayer. Check the box on the first page of Form CT‑1040NR/PY if you have filed federal Form 1310. If you have filed federal Form 1310, you must file Form CT‑1040NR/PY by paper. For more information, see Claiming a Refund for a Deceased Taxpayer, on Page 6. To provide relief to Connecticut taxpayers during the COVID‑19 pandemic, the Connecticut Department of Revenue Services (DRS) extended the deadlines for the first and second quarter 2020 income tax estimated payments to July 15, 2020. You may use Form CT-2210 to calculate and report any interest due with your return. Alternatively, DRS will calculate interest on any underpayment of estimated tax and send you a bill. TAXPAYER SERVICE CENTER (TSC) Most Connecticut taxpayers can electronically file through the DRS electronic Taxpayer Service Center (TSC‑IND). The TSC-IND allows you to: • File your Connecticut nonresident and part‑year resident income tax return, including: • Your Schedule CT-PE; • File a Connecticut extension of time to file request; and • Make online payments of estimated tax or income tax bills. In addition, the TSC-IND has expanded options including the ability to: • Check the status of your income tax refund; • View account period details; • View returns filed in the TSC; • View/cancel scheduled payments made in the TSC; and • View processed payments. TSC Website Visit portal.ct.gov/TSC to learn more about free filing options. Page 3 Important Information Tax Assistance Visit the DRS website at portal.ct.gov/DRS or call DRS to speak directly with an agent about the filing of a return or account related matters, Monday through Friday, 8:30 a.m. to 4:30 p.m. at 800-382-9463 (Connecticut calls outside the Greater Hartford calling area only); or 860-297-5962 (from anywhere). DRS is centralizing its services to provide remote assistance, where taxpayers can schedule an appointment to receive tax assistance from the comfort of their own homes, from a trained DRS professional during normal business hours. Taxpayers should be prepared with the pertinent tax information before contacting DRS to ensure an efficient and effective customer service outcome. The following is a list of transactions for which DRS recommends that taxpayers schedule an appointment to seek remote assistance: • IFTA Registrations • Bond matters • Audit determination meetings • Tax hearings/appeal matters To schedule an appointment, contact the DRS Taxpayer Service Center at 860-297-5770. As a reminder, most taxpayer transactions are easily conducted through the DRS website at portal.ct.gov/DRS: • File returns • Research the DRS tax library • Make payments • Request a letter of good standing • Check the status of a refund • Request a copy of previously filed tax information • Register a business • Submit a general tax question through the DRS email portal available 24 hours a day, 7 days a week Forms and Publications Visit the DRS website at portal.ct.gov/DRS to download and print Connecticut tax forms and publications anytime. Connecticut Form 1099-G If you itemize your deductions for federal income tax purposes and wish to obtain your Connecticut Form 1099‑G information, you may do so by visiting portal.ct.gov/DRS, select For Individuals and select Get My Form 1099‑G. DRS will not mail paper copies of the Connecticut Form 1099‑G. Avoid Delaying Your Refund Follow these tips to avoid errors and to help us process your refund faster: Be sure you have received all your federal Forms W‑2, 1099, and Schedules CT K‑1 before filing your Connecticut income tax return. Generally, you will receive Forms W‑2 and 1099 on or before January 31, Schedule CT K‑1 on or before March 15, and Schedule CT‑1041 K‑1 on or before April 15. If you receive an additional federal Form W‑2, Form 1099, Schedule CT K‑1, or Schedule CT‑1041 K‑1 after filing your Connecticut income tax return, you may be required to file Form CT‑1040X, Amended Page 4 Connecticut Income Tax Return for Individuals. See Amended Returns, on Page 36. Most taxpayers qualify to electronically file their Connecticut income tax return. See Filing the Connecticut Income Tax Return Electronically, on Page 11. You must use blue or black ink only to complete your paper return. Complete and send all four pages of your return. If you do not provide DRS with all the completed pages of your return or do not provide all required information, the processing of your return will be delayed. Enter your name, mailing address, your SSN or ITIN, and the name and SSN or ITIN for your spouse (if filing a joint return), and attach all required schedules or forms. If you do not provide an SSN or ITIN for all taxpayers, DRS can not process your tax return. Do not send Forms W‑2, Forms 1099, Schedules CT K‑1, or Schedules CT‑1041 K‑1 with your Connecticut income tax return. Complete Columns A, B, and C of Section 3 of your return and Schedule CT‑PE, Pass‑Through Entity Tax Credit, if applicable. DRS will disallow your Connecticut withholding or PE Tax Credit if you fail to complete all columns or required schedules. Round all figures to the nearest whole dollar. See Rounding Off to Whole Dollars on Page 15. Sign your return. If you and your spouse are filing jointly, both of you must sign. Have your paid preparer sign the return and enter the tax preparer tax identification number (PTIN) issued by the Internal Revenue Service in the space provided. Check the box next to the deceased taxpayer’s SSN, if you are an executor, administrator, or spouse filing a return for a deceased taxpayer. Check the box on the first page of your return if you are filing Form CT‑1040 CRC, Claim of Right Credit. If you are filing Form CT-1040 CRC, you must file a paper return. Check the box on the first page of your return if you are filing federal Form 1310, Statement of Person Claiming Refund Due a Deceased Taxpayer. If you are filing federal Form 1310, you must file a paper return. Check the box on the first page of your return if you are filing Form CT‑2210, Underpayment of Estimated Income Tax by Individuals, Trusts and Estates. Check the box on the first page of your return if you are filing Form CT‑8379, Nonobligated Spouse Claim. See Nonobligated Spouse, on Page 13. If you filed joint estimated tax payments but elect or are required to file separate income tax returns, both you and your spouse must file your income tax returns at the same time. No refund will be processed until both Connecticut returns are received. Use the correct DRS mailing address on the envelope when filing your paper return. One address is for all tax forms with payment. The other address is for refunds and all other tax forms without payment. See Mailing Addresses for Form CT‑1040NR/PY, on Page 11. Elect direct deposit, by completing Lines 27a through 27c, for the fastest way to receive your refund. This option is not available to first-time filers. If you do not elect or qualify for direct deposit, a refund check will be issued, and refund processing may be delayed. If you have additional tax due with your electronically filed income tax return, and you elect not to pay electronically, send your payment with Form CT‑1040V, Connecticut Electronic Filing Payment Voucher. Do not send a paper copy of your electronically filed return with the payment. If you are filing an estimated income tax payment that is due April 15 using Form CT‑1040ES, Estimated Connecticut Income Tax Payment Coupon for Individuals, and you are filing Form CT‑1040V, Connecticut Electronic Filing Payment Voucher, to pay any additional tax due, make sure you include the correct payment that corresponds with each form. If you are completing Form CT‑2210, Underpayment of Estimated Income Tax by Individuals, Trusts, and Estates, to calculate interest due or lower or eliminate interest that would otherwise apply on your underpaid estimated Connecticut income tax, make sure you check the appropriate box on Part 1, Reasons For Filing, if applicable. Who Must File Form CT-1040NR/PY 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 2020 and any of the following is true for the 2020 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, on Page 8. 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; • Alimony; • 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. • REFUND OPTIONS Direct Deposit The fastest way to get your refund is to file your return electronically and elect direct deposit. Choosing direct deposit allows the money to go directly into your bank account; it eliminates the possibility of the refund being lost, stolen or returned as undeliverable; and it saves tax dollars by costing the government less. 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. In an effort to reduce fraud, direct deposit is not available to first-time Connecticut income tax filers. Paper Check If you do not elect or qualify for direct deposit, a refund check will be issued and processing may be delayed. DRS recommends that taxpayers who are not first time Connecticut income tax filers choose direct deposit, the most reliable and fastest way to receive your refund. Page 5 Gross Income Test You must file a Connecticut income tax return if your gross income for the 2020 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: 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: Gross Income $100,000 Expenses (92,000) ________ Net Income $ 8,000 Because the gross income of $100,000 exceeds the minimum requirement and the income is from a Connecticut source, this nonresident must file 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. Relief From Joint Liability In general, if you and your spouse file a joint income tax return, you are both responsible for paying the full amount of tax, interest, and penalties due on your joint return. However, in very limited and specific cases, relief may be granted if you believe all or any part of the amount due should be paid only by your spouse. You may request consideration by filing Form CT‑8857, Request for Innocent Spouse Relief (And Separation of Liability and Equitable Relief). The statute of limitations for requesting innocent spouse relief or separation of liability is two years from the date on which DRS begins collection activities against you. For equitable relief requests, the statute of limitations applicable to federal equitable relief requests will be applicable to Connecticut equitable relief requests. This statute of limitations is applicable to all open equitable relief requests. See Policy Statement 2016(2), Innocent Spouse Relief, Separation of Liability, and Equitable Relief. Title 19 Recipients If you are a Title 19 recipient, you must file a Connecticut income tax return if you meet the requirements for Who Must File Form CT‑1040NR/PY, on Page 5. However, if you do not have funds to pay your Connecticut income tax, complete Form CT‑19IT, Title 19 Status Release, and attach it Page 6 to the front of your Connecticut income tax return if the following two conditions apply: • You were a Title 19 recipient during 2020; and • Medicaid assisted in the payment of your long‑term care in a nursing or convalescent home during 2020. Completing this form authorizes DRS to verify your Title 19 status for 2020 with the Department of Social Services. Deceased Taxpayers An executor, administrator, or surviving spouse must file a Connecticut income tax return, for that portion of the year before the taxpayer’s death, for a taxpayer who died during the year if the requirements for Who Must File Form CT‑1040NR/PY (on Page 5) are met. The executor, administrator, or surviving spouse must check the box next to the deceased taxpayer’s SSN on the front page; sign for the deceased taxpayer on the signature line; and indicate the date of death. Generally, the Connecticut and federal filing status must be the same. A surviving spouse may file a joint Connecticut income tax return if the surviving spouse filed a joint federal income tax return. Write “filing as surviving spouse” in the deceased spouse’s signature line on the return. If both spouses died in 2020, their legal representative must file a final return. Claiming a Refund for a Deceased Taxpayer If you are a surviving spouse filing jointly with your deceased spouse, you may claim the refund on the jointly‑filed return. If you are a court-appointed representative, file the return and attach a copy of the certificate that shows your appointment. All other filers requesting the deceased taxpayer’s refund must file the return and attach federal Form 1310, Statement of Person Claiming Refund Due a Deceased Taxpayer, to the front of the return. Check the box on the first page of your return if you are filing federal Form 1310. If you are filing federal Form 1310, you must file a paper return. Refund claims for deceased taxpayers should be made as soon as possible during the annual filing period. Under federal law, personal Social Security Numbers are not protected after death and will be disclosed by the Social Security Administration upon request. This is a major cause of fraudulent refund claims filed and paid before the legitimate taxpayer’s claim is filed. Income received by the estate of the decedent for the portion of the year after the decedent’s death, and for succeeding taxable years until the estate is closed, must be reported each year on Form CT‑1041, Connecticut Income Tax Return for Trusts and Estates. Special Information for Nonresident Aliens 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, on Page 5. 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 or Form 1040NR‑EZ 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 or federal Form 1040NR‑EZ 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. Connecticut during the 2020 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 2020 taxable year, you must file Form CT‑1040NR/PY. Resident, Part-Year Resident, or Nonresident Group A 1. You did not maintain a permanent place of abode in Connecticut for the entire 2020 taxable year; 2. You maintained a permanent place of abode outside of Connecticut for the entire 2020 taxable year; and 3. You spent not more than 30 days in the aggregate in Connecticut during the 2020 taxable year. 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. Resident You are a resident for the 2020 taxable year if: • Connecticut was your domicile (permanent legal residence) for the entire 2020 taxable year; or • You were not domiciled in Connecticut but you maintained a permanent place of abode in Connecticut during the entire 2020 taxable year and spent a total of more than 183 days in Connecticut during the 2020 taxable year. Nonresident aliens who meet either of these conditions are considered Connecticut residents even if federal Form 1040NR‑EZ or federal Form 1040NR is filed for federal income tax purposes. See also Special Rules for Married Individuals on Page 15 and Special Information for Nonresident Aliens on Page 6. 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). Part‑Year Resident You are a part‑year resident for the 2020 taxable year if you changed your permanent legal residence by moving into or out of Nonresident You are a nonresident for the 2020 taxable year if you are neither a resident nor a part-year resident for the 2020 taxable year. If you are a nonresident and you meet the requirements of Who Must File Form CT‑1040NR/PY for the 2020 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 2020 even if your domicile was Connecticut. Group B 1. You were in a foreign country for at least 450 days during any period of 548 consecutive days; 2. 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 3. 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 such portion of the taxable year bears to 548. See the calculation below. Number of days in the nonresident portion 548 x 90 = Maximum days allowed in Connecticut See Special Notice 2000(17), 2000 Legislation Affecting the Connecticut Income Tax. Military Personnel Filing Requirements 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 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, on Page 7. 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. See instructions for Form CT‑1040NR/PY, Line 51, on Page 23. 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, Page 7 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 this income. Spouses of military personnel, see Informational Publication 2019(5), Connecticut Income Tax Information for Armed Forces Personnel and Veterans. Combat Zone 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. How Nonresidents and Part-Year Residents Are Taxed 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. Page 8 Connecticut Adjusted Gross Income 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: 1. $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. 2. 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: 1. Connecticut adjusted gross income for the part of the year you were a resident; 2. Income derived from or connected with Connecticut sources for the part of the year you were a nonresident; and 3. Special accruals. Items Subject to Special Accrual 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, on Page 32. Example 1: Laura, a part‑year resident who moved out of Connecticut in June 2020, sold property on the installment basis in April 2020. 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 2020 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, 2020, and moved to Florida. His employer notified him on August 15, 2020, that he would receive a $1,000 bonus on September 15, 2020. He must accrue the $1,000 bonus to the portion of 2020 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 2020. 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 2020 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 2020, 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. Surety Bond 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 Page 9 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, 2020, until July 31, 2020. 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, 2020. Nikki also owned a condominium in Connecticut, which she rented to a third party from January 1 to July 31, 2020. 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 2020. 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 includable in her Connecticut adjusted gross income and none of it is subject to special accrual. Additional Forms and Schedules You May Have to Complete This booklet contains instructions for forms you may have to complete in addition to Form CT‑1040NR/PY. Below is a description of these forms and an explanation of who should complete them. A self‑employed nonresident or part‑year resident (for his or her nonresidency period) who carried on business both in and outside of Connecticut may also be required to file Schedule CT‑1040BA, Nonresident Business Apportionment (not included in this booklet). Form Schedule CT-SI Parts 1 and 2 ................ Employee .................... Apportionment Worksheet Schedule CT-1040AW Who Should Complete All nonresidents and part-year residents A nonresident employee or part-year employee (for his or her nonresidency period) who worked in and outside of Connecticut and does not know the actual amount of Connecticut-sourced income. All part-year residents Taxable Year and Method of Accounting You must use the same taxable year for Connecticut income tax purposes as you use for federal income tax purposes. Most individuals use the calendar year as their taxable year for federal income tax purposes. However, if the calendar year is not your taxable year for federal income tax purposes, references in this booklet to 2020 are references to your taxable year beginning during 2020. You must use the same method of accounting for Connecticut income tax purposes as you use for federal income tax purposes. If your taxable year or method of accounting is changed for federal income tax purposes, the same change must be made for Connecticut income tax purposes. When to File Your Connecticut income tax return is due on or before April 15, 2021. If you are not a calendar year filer, your return is due on or Page 10 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. 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 on Page 12 to determine if interest and penalty must be reported with the return. Extension Requests 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. 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, on Page 12, if you do not pay all the tax due with your extension request. Visit portal.ct.gov/TSC to file your extension electronically. You do not need to file Form CT‑1040 EXT if you: • Have requested an extension of time to file your 2020 federal income tax return and you expect to owe no additional Connecticut income tax for the 2020 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 2020 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 2020 and will 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 will be 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. Filing the Connecticut Income Tax Return Electronically Most Connecticut taxpayers are able to use the DRS Taxpayer Service Center (TSC) to file their Connecticut income tax return at portal.ct.gov/TSC. You may electronically file your Connecticut income tax return through the TSC if all of the following are true: You filed a Connecticut income tax return in the last three years, or 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 select For Individuals and select E‑Services 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, 2020 Connecticut Electronic Filing Payment Voucher, with your payment. Mailing Addresses for Form CT‑1040NR/PY For tax forms with payment enclosed: Department of Revenue Services PO Box 2977 Hartford CT 06104-2977 For tax forms requesting refunds or tax forms without payment enclosed: Department of Revenue Services PO Box 2976 Hartford CT 06104-2976 For payments without tax forms: Department of Revenue Services Processing PO Box 5088 Hartford CT 06102-5088 Write “2020 Form CT‑1040NR/PY” and your SSN(s) (optional) on the front of your check. Estimated Tax Payments for Tax Year 2021 You must make estimated income tax payments if: 1. 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 2. You expect your Connecticut income tax withheld (including any PE Tax Credit) to be less than your required annual payment for the 2021 taxable year. Your required annual payment for the 2021 taxable year is the lesser of: • 90% of the income tax shown on your 2021 Connecticut income tax return; or • 100% of the income tax shown on your 2020 Connecticut income tax return if you filed a 2020 Connecticut income tax return that covered a 12-month period. 2021 Estimated Tax Due Dates Due dates of installments and the amount of required payments for 2020 calendar year taxpayers are: April 15, 2021 25% of your required annual payment June 15, 2021 25% of your required annual payment (A total of 50% of your required annual payment should be paid by this date.) September 15, 2021 25% of your required annual payment (A total of 75% of your required annual payment should be paid by this date.) January 15, 2022 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 if 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. Page 11 You do not have to make estimated income tax payments if: • You were a Connecticut resident during the 2020 taxable year and you did not file a 2020 income tax return because you had no Connecticut income tax liability; or • You were a nonresident or part‑year resident with Connecticut‑sourced income during the 2020 taxable year and you did not file a 2020 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 2020 taxable year, your required annual payment is 90% of the income tax shown on your 2021 Connecticut income tax return. Annualized Income Installment Method 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. Filing Form CT-1040ES You may file and pay your 2021 Connecticut estimated tax using the TSC. You may also make your payments by credit card. Visit the DRS website at portal.ct.gov/TSC for more information. Use Form CT‑1040ES, Estimated Connecticut Income Tax Payment Coupon for Individuals, to make estimated Connecticut income tax payments for 2021 by mail. If you made estimated tax payments by mail in 2020, you will automatically receive coupons for the 2021 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 2020, 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 fro
More about the Connecticut CT-1040NR/PY Instructions Individual Income Tax Nonresident TY 2020
CT-1040NR/PY Instructions requires you to list multiple forms of income, such as wages, interest, or alimony .
We last updated the Tax Instruction Booklet: CT-1040 for Nonresidents/Part-Year Residents in February 2021, so this is the latest version of CT-1040NR/PY Instructions, fully updated for tax year 2020. You can download or print current or past-year PDFs of CT-1040NR/PY Instructions directly from TaxFormFinder. You can print other Connecticut tax forms here.
Other Connecticut Individual Income Tax Forms:
|Form Code||Form Name|
|Tax Instruction Booklet||Form CT-1040 Instruction Booklet|
|Form CT-1040||Connecticut Resident Income Tax Return|
|Form CT-1040NR-PY||Nonresident/Part-Year Resident Tax Return|
|CT-1040||Individual Income tax Return (Resident)|
|CT-1040NR/PY Instructions||Tax Instruction Booklet: CT-1040 for Nonresidents/Part-Year Residents|
Connecticut usually releases forms for the current tax year between January and April. We last updated Connecticut CT-1040NR/PY Instructions from the Department of Revenue Services in February 2021.
CT-1040NR/PY Instructions is a Connecticut Individual Income Tax form. Many states have separate versions of their tax returns for nonresidents or part-year residents - that is, people who earn taxable income in that state live in a different state, or who live in the state for only a portion of the year. These nonresident returns allow taxpayers to specify which which income is subject to the state's taxes, and which is not.
About the Individual Income Tax
The IRS and most states collect a personal income tax, which is paid throughout the year via tax withholding or estimated income tax payments.
Most taxpayers are required to file a yearly income tax return in April to both the Internal Revenue Service and their state's revenue department, which will result in either a tax refund of excess withheld income or a tax payment if the withholding does not cover the taxpayer's entire liability. Every taxpayer's situation is different - please consult a CPA or licensed tax preparer to ensure that you are filing the correct tax forms!
Historical Past-Year Versions of Connecticut CT-1040NR/PY Instructions
We have a total of five past-year versions of CT-1040NR/PY Instructions in the TaxFormFinder archives, including for the previous tax year. Download past year versions of this tax form as PDFs here:
CT-1040NRPY Booklet, 2016 Connecticut Nonresident and Part-Year Resident Income Tax Instructions
While we do our best to keep our list of Connecticut Income Tax Forms up to date and complete, we cannot be held liable for errors or omissions. Is the form on this page out-of-date or not working? Please let us know and we will fix it ASAP.