Connecticut Form CT-1040 Instruction Booklet
Extracted from PDF file 2018-connecticut-tax-instruction-booklet.pdf, last modified December 2018
Form CT-1040 Instruction Booklet2018 FORM CT-1040 This booklet contains information and instructions for the following Forms and Schedules: • Form CT-1040 • Schedule CT-EITC • Schedule CT-PE • Schedule CT-CHET • Tax Tables • Tax Calculation Schedule • Use Tax Information DRS epartment of evenue ervices Connecticut Resident Income Tax Return Instructions Important 2018 Connecticut Income Tax Topics: File Electronically File electronically ... it is secure, fast and free! Visit portal.ct.gov/TSC to electronically file. See Taxpayer Service Center, on Page 53. Refund Options Direct Deposit Choose direct deposit for the fastest way to receive your Connecticut income tax refund. Direct deposit is not available for first time Connecticut filers. See Refund Options, Direct Deposit, on Page 4. Paper Check If you do not elect or qualify for direct deposit, your refund will be issued by paper check. Processing a paper check may increase the time it takes for you to receive your refund. Connecticut Earned Income Tax Credit Full-year residents may be eligible to claim the Connecticut earned income tax credit (CT EITC). See CT EITC on Page 6. Protecting Taxpayer Information and Refunds Security of taxpayer information and financial transactions is a top priority for DRS to better protect your personal information and assure that refunds are delivered to their rightful owners. See Protecting Taxpayer Security, on Page 16. File early to protect your refund from identity thieves. “The Department of Revenue Services (DRS) seeks to achieve the highest level of voluntary tax compliance and provide excellent customer service. DRS publications, like this one, are designed to provide taxpayers with the tools needed to complete their tax filings. When you are ready to file, visit the online Taxpayer Service Center (TSC), which is user-friendly, secure, and ensures a faster refund. If you have questions, please contact DRS. We welcome your ideas and suggestions on how we can better serve the public.” Commissioner Scott D. Jackson What’s New Property Tax Credit Limitation For taxable year 2018, in order to qualify for the property tax credit, you, or your spouse if married filing jointly, must be 65 years of age or older by the end of the taxable year, or you must have claimed at least one dependent on your federal income tax return. The maximum income tax credit for taxes paid to Connecticut municipalities remains at $200. The phase-out thresholds for all filing statuses remain at the 2017 levels. IRC § 168(k) Bonus Depreciation Modifications The federal Tax Cuts and Jobs Act of 2017 increased the § 168(k) bonus depreciation percentage from 50 percent to 100 percent for qualified property acquired and placed in service after September 27, 2017, and before January 1, 2023. Addition modification: For taxable years beginning on or after January 1, 2017, in determining a taxpayer’s Connecticut Adjusted Gross Income (AGI), a taxpayer is required to add back any § 168(k) bonus depreciation amount reported for federal income tax purposes for property placed in service after September 27, 2017. This addition modification applies to the extent such amount is deducted in determining the taxpayer’s federal AGI for the taxable year. This addition modification must be made on Form CT-1040, Schedule 1, Line 36; Form CT-1040NR/PY, Schedule 1, Line 38; or Form CT-1040X, Schedule 1, Line 36, for taxable years beginning on or after January 1, 2018. Taxpayers who reported this deduction on their federal return for taxable year 2017, were required to file amended Connecticut income tax returns to report this amount as an addition modification. DRS published guidance in OCG-5, Office of the Commissioner Guidance Regarding the Treatment of Bonus Depreciation for Connecticut Income Tax Purposes. Page 2 Subtraction modification: Where a taxpayer reports the § 168(k) amount as an addition modification on the Connecticut income tax return, the taxpayer will be allowed, in computing his or her Connecticut AGI, to subtract from his or her federal AGI 25% of such § 168(k) amount in each of the four succeeding taxable years. The subtraction modification is made on Form CT-1040, Schedule 1, Line 48a; Form CT-1040NR/PY, Schedule 1, Line 50a; or Form CT-1040X, Schedule 1, Line 48a. Taxpayers who were required to amend their 2017 Connecticut income tax return to add back the § 168(k) amount are allowed to deduct 25% of that amount beginning in taxable year 2018. See OCG-5 for additional information. This provision affects individuals, partnerships, limited liability companies treated as partnerships for federal income tax purposes, and S corporations. Income Tax Exemption for Teacher Pensions For taxable years beginning on or after January 1, 2018, in determining a taxpayer’s Connecticut AGI, a taxpayer is allowed a subtraction modification of 25% of the income received from the state teacher’s retirement system. This modification applies to the extent such income is properly included in the taxpayer’s federal AGI for the taxable year. IRC § 179 Modifications The federal Tax Cuts and Jobs Act of 2017, allows a taxpayer to expense the cost of any § 179 property and deduct it on their federal return in the year the property is placed in service. Addition modification: For taxable years beginning on or after January 1, 2018, in determining a taxpayer’s Connecticut AGI, a taxpayer is required to add back 80% of the § 179 amount deducted for federal income tax purposes for the taxable year. This addition modification applies to the extent such amount is deducted in determining the taxpayer’s federal AGI for the taxable year. This addition modification must be made on Form CT-1040, Schedule 1, Line 36a; Form CT-1040NR/PY, Schedule 1, Line 38a; or Form CT-1040X, Schedule 1, Line 36a, for taxable years beginning on or after January 1, 2018. Where a taxpayer reports the § 179 amount as an addition modification on the Connecticut income tax return, the taxpayer will be allowed, in computing his or her Connecticut AGI, to subtract from his or her federal AGI 25% of such § 179 amount in each of the four succeeding taxable years. This provision affects individuals, partnerships, limited liability companies treated as partnerships for federal income tax purposes, and S corporations. Paid Preparers If you are a paid tax preparer preparing any Connecticut personal income tax return(s), you are required to comply with certain requirements. You are also required to obtain a tax preparer permit from DRS. See Special Notice 2017(8), New Requirements for Income Tax Preparers and Facilitators of Refund Anticipation Loans or Checks, and Special Notice 2018(8), Permit Requirements for Tax Preparers and Facilitators. Convenience of the Employer Test Bioscience Investment Income Subtraction Modification For taxable years beginning on or after January 1, 2018, in determining his or her Connecticut AGI, a general partner of a qualified venture capital fund is allowed a deduction for the income generated by investments in eligible Connecticut bioscience businesses. For purposes of this deduction, a general partner is: • A partner of a general partnership; • A general partner of a limited partnership that is treated as a partnership for federal income tax purposes; and • A partner of a limited liability partnership. It includes a member of a limited liability company that is treated as a partnership for federal income tax purposes if 1) such company is managed by managers and such member is a member-manager of such company, or 2) such company is not managed by managers. A general partner must use Schedule CT-BIO, Bioscience Worksheet, to calculate the amount of the subtraction modification. The subtraction modification must be made on Form CT-1040, Schedule 1, Line 49; Form CT-1040NR/PY, Schedule 1, Line 51; or Form CT-1040X, Schedule 1, Line 49, and enter “Bio Science” in the space provided. This subtraction modification applies to the extent such amount is included in determining the taxpayer’s federal AGI for the taxable year. For taxable years beginning on or after January 1, 2019, residents of states with a “convenience of the employer” test will be subject to similar rules for work performed for a Connecticut employer. Generally, in a state that applies this test, wages earned by a nonresident are allocated to the employer’s location unless the nonresident works from an out-of-state location due to the necessity of the employer rather than the convenience of the employee. Penalty for Failure to Disclose Reportable Transactions For example, in determining whether income earned by a New York resident individual telecommuting for a Connecticut employer will be deemed Connecticutsourced income, Connecticut will apply the New York “convenience of the employer” test. PE Tax Credit Similarly, Connecticut residents working from Connecticut for an employer in a state that applies the “convenience of the employer” test will be allowed a credit for taxes paid to such other state on the income deemed to be sourced from such state based on the application of the “convenience of the employer” test. For audits of returns on or after January 1, 2018, a 75% penalty will apply for failure to disclose reportable transactions on the Connecticut return that are also required to be disclosed for federal purposes. Additionally, a six-year statute of limitations for assessment applies to returns that fail to disclose a reportable transaction. For taxable years beginning on or after January 1, 2018, pass-through entities (partnerships, S corporations, limited liability companies that are treated as partnerships or S corporations for federal income tax purposes) that carry on business in Connecticut or have income derived from Connecticut sources will be subject to a Connecticut pass-through entity tax (PE Tax). Page 3 If you are a partner or member of a pass-through entity required to pay the PE Tax, you will be be allowed a credit (PE Tax Credit) for your share of the PE Tax imposed on the pass-through entity. The amount of the PE Tax Credit is equal to your direct and indirect pro-rata share of the PE Tax paid by the pass-through entity multiplied by 93.01%. You can use the PE Tax Credit against your Connecticut income tax liability. If your credit exceeds your Connecticut income tax liability, the excess will be considered an overpayment, and will be refunded to you without interest. If your PE Tax Credit is not sufficient to offset your Connecticut income tax liability, you are required to remit the balance of your tax due. The PE will report the amount of your credit on Schedule CT K-1, Member’s Share of Certain Connecticut Items. If you are a beneficiary of a trust or estate that is a partner or member of a pass-through entity required to pay the PE Tax, your Schedule CT-1041 K-1, Beneficiary’s Share of Certain Connecticut Items, will report the amount of the PE Tax Credit you are allowed to claim on your Connecticut income tax return. You must complete Schedule CT-PE, Pass-Through Entity Tax Credit, include the total from Line 1, Schedule CT-PE, on Form CT-1040, Line 20c; Form CT-1040NR/PY, Line 22b; or Form CT-1040X, Line 22c. If on or before December 31, 2018, you requested any of your 2018 Connecticut income tax estimated payments to be transferred (recharacterized) as 2018 PE Tax estimated payments to one or more pass-through entities of which you are a member, do not include those payments on Form CT-1040, Line 19; Form CT-1040NR/PY, Line 21; Form CT-1040X, Line 22; or Form CT-1041, Line 11. Resident and part-year resident members are entitled to a credit for taxes paid to another jurisdiction on income from such other jurisdiction from pass-through entities subject to the Connecticut PE Tax, if the tax paid to such other jurisdiction is substantially similar to the PE Tax. To date, DRS has not identified any substantially similar taxes. 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 4 Q & A About the Connecticut Individual Use Tax 1. What is use tax? Connecticut taxpayers owe use tax on purchases of taxable goods or services when Connecticut sales tax is not collected at the time of sale. Most often, this results from purchases made online or out-of-state. Together, sales and use taxes ensure that taxable purchases of goods and services used in Connecticut are treated equally and fairly. 2. Who pays use tax? If Connecticut sales tax is not paid to the retailer at the time of purchase, Connecticut law requires that the purchaser pay use tax directly to the DRS. 3. On what kinds of goods or services must I pay use tax? You must pay use tax on taxable goods, whether purchased, leased or rented, and taxable services. Taxable goods include: furniture, jewelry, automobiles, appliances, cameras, computers, and computer software. Taxable services include: repair services to your television, motor vehicle, or computer; landscaping services for your home; and reupholstering services for your household furniture. 4. Are there exemptions from the use tax? Yes. Generally, any purchase or lease of goods or services exempt from Connecticut sales tax is also exempt from Connecticut use tax. Some examples are newspapers, magazines by subscription, Internet access services, and repair and maintenance services to vessels. 5. Do I owe Connecticut use tax on all my outof-state purchases of goods that are taxable in Connecticut? No. If all the goods purchased and brought into Connecticut at one time total $25 or less, you do not have to pay Connecticut use tax – but the $25 exemption does not apply to goods shipped or mailed to you. Generally, if you purchase taxable goods from mail order companies, over the Internet or at an outof-state location and had those goods shipped to Connecticut or brought back into Connecticut for use in Connecticut and did not pay Connecticut sales tax, you must pay the Connecticut use tax. 6. What are the use tax rates? Use tax rates are the same as sales tax rates. The general rate is 6.35% for purchases of taxable goods or services. The rate on computer and data processing services is 1%. However, the sales tax rate on certain items of tangible personal property is 7.75%. The rate for vessels, motors for vessels, and trailers to transport vessels is 2.99%. (See Schedule 4, Individual Use Tax, on Page 34.) 7. When must individuals pay use tax? You must pay use tax no later than April 15 for purchases made during the preceding calendar year (January - December). Your use tax liability may be reported either on Form OP-186, Form CT-1040, Form CT-1040NR/PY, or Form CT-1040X. If you are not required to file a Connecticut income tax return, you must file and pay your use tax liability using Form OP-186 no later than April 15. You may file one Form OP-186 for the entire year or you may file several returns throughout the year. If you are engaged in a trade or business, you must register with DRS for business use tax and report purchases made in connection with your trade or business on Form OS-114, Sales and Use Tax Return. 8. Are there penalties and interest for not paying the use tax? Yes. The penalty is 10% of the tax due. Interest is charged at the rate of 1% per month from the due date of the tax return. There are also criminal sanctions for willful failure to file a tax return. When you sign an annual income tax return, you are legally declaring the truthfulness, completeness, and correctness of all information – including the section for use tax payment. 9. How does an individual calculate their use tax liability? Calculate the use tax by multiplying the total cost of the taxable goods or services purchased, including separately stated charges such as shipping and handling, by the applicable sales tax rate (1%, 2.99%, 6.35%, or 7.75%). 10. What if I buy taxable goods or services in another state and the vendor charges sales tax for the other state? If goods or services are purchased for use in Connecticut and the tax paid in the other state is less than the Connecticut tax, you must report and pay Connecticut use tax equal to the difference between the Connecticut tax and the tax paid to the other state. Page 5 11. What if I do not report and pay the use tax I owe? You and your preparer must sign and declare that your income tax filing is “true, complete, and correct.” That includes calculating and reporting on Line 15 all purchases of goods or services, whether in Connecticut or from outside the state, on which Connecticut sales tax was due but not paid. Failure to report use tax due on Line 15 and include that amount in the total amount due on Line 30 may subject you to a penalty of up to $5,000, imprisonment for up to 5 years, or both. For more information on Connecticut Individual Use Tax, please review Informational Publication 2016(19), Q&A on the Connecticut Individual Use Tax. Sample Use Tax Table Total Purchases Use Tax Due at: Subject to Use Tax 6.35% $25 50 75 100 150 200 250 300 350 400 450 500 550 600 650 700 750 800 850 900 1,000 1,100 1,200 1,300 1,400 1,500 1,600 1,700 1,800 1,900 $2,000 7.75% $1.59 ─ 3.18 ─ 4.76 ─ 6.35 ─ 9.53 ─ 12.70 ─ 15.88 ─ 19.05 ─ 22.23 ─ 25.40 ─ 28.58 ─ 31.75 ─ 34.93 ─ 38.10 ─ 41.28 ─ 44.45 ─ 47.63 ─ 50.80 ─ 53.98 ─ 57.15 ─ 63.50 ─ 69.85 85.25 76.20 93.00 82.55 100.75 88.90 108.50 95.25 116.25 101.60 124.00 107.95 131.75 114.30 139.50 120.65 147.25 127.00 155.00 Total Purchases Use Tax Due at: Subject to Use Tax 6.35% 2,100 2,200 2,300 2,400 2,500 2,600 2,700 2,800 2,900 3,000 3,100 3,200 3,300 3,400 3,500 3,600 3,700 3,800 3,900 4,000 4,100 4,200 4,300 4,400 4,500 4,600 4,700 4,800 4,900 5,000 133.35 139.70 146.05 152.40 158.75 165.10 171.45 177.80 184.15 190.50 196.85 203.20 209.55 215.90 222.25 228.60 234.95 241.30 247.65 254.00 260.35 266.70 273.05 279.40 285.75 292.10 298.45 304.80 311.15 317.50 7.75% 162.75 170.50 178.25 186.00 193.75 201.50 209.25 217.00 224.75 232.50 240.25 248.00 255.75 263.50 271.25 279.00 286.75 294.50 302.25 310.00 317.75 325.50 333.25 341.00 348.75 356.50 364.25 372.00 379.75 387.50 When filing your return, don’t forget the Connecticut Earned Income Tax Credit. • To qualify for the Connecticut Earned Income Tax Credit (CT EITC), you must be a full-year Connecticut resident. Part-year residents and nonresidents with Connecticut-sourced income do not qualify for the CT EITC and must file Form CT-1040NR/PY. • Qualified taxpayers claim the CT EITC by completing Schedule CT-EITC, Connecticut Earned Income Tax Credit (included in this book). • Schedule CT-EITC must be attached to Form CT-1040 (or Form CT-1040X) or the claim for credit will not be reviewed. DRS EITC Website • The CT EITC is equal to 23% of the amount of the federal earned income credit claimed and allowed. See Schedule CT-EITC - Connecticut Earned Income Tax Credit, on Page 35. Connecticut taxpayers may obtain help filing Schedule CT-EITC by visiting portal.ct.gov/DRS. See the back cover for more Connecticut tax information. Page 6 Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Connecticut Organ Donor (Y) Give the gift of hope by registering to become an organ and tissue donor. Information about organ donation and various organ donor programs is available from the following websites. Donate Life Connecticut www.ctorganandtissuedonation.org/ United Network for Organ Sharing (UNOS) www.unos.org/ Organ Donation www.organdonor.gov/ LifeChoice Donor Services www.lifechoiceopo.org/ National Marrow Donor Program Be The Match Registry www.bethematch.org/ New England Organ Bank www.neob.org/ Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Contributions to Designated Charities Below is a list of charities for which you may use your tax return to contribute all or a portion of your refund. Enter your total contributions on Form CT-1040, Connecticut Resident Income Tax Return, Schedule 5, Line 70. Your contribution is irrevocable. To contribute directly, send your contribution to the address shown below. Designated Charity: Mailing Address: Make checks payable to: Aids Research Education Fund Assists research, education, and community service programs related to Acquired Immune Deficiency Syndrome (AIDS). Department of Public Health - HIV Prevention Program MS #11APV PO Box 340308 Hartford CT 06134-0308 Treasurer, State of Connecticut/AIDS Fund Breast Cancer Research and Education Fund Assists research, education, and community service programs related to breast cancer. Department of Public Health - Community Health and Prevention Section MS #11 CCS PO Box 340308 Hartford CT 06134-0308 Treasurer, State of Connecticut/Breast Cancer Fund CHET Baby Scholars Fund Provides contributions of up to $250 for CHET college savings accounts opened for children under age one or newly adopted. Office of the State Treasurer CHET, 7th Floor 55 Elm Street Hartford, CT 06106 Treasurer, State of Connecticut/CHET Baby Scholars Endangered Species, Natural Area Preserves, and Watchable Wildlife Fund Helps preserve, protect, and manage Connecticut’s endangered plants and animals, wildlife and their habitats. Department of Energy & Environmental Protection Bureau of Administration Financial Management 79 Elm Street Hartford CT 06106-1591 DEEP-Endangered Species/ Wildlife Fund Military Relief Fund Makes grants to the immediate family members of service members domiciled in Connecticut for essential goods and services when military service creates family financial hardship. Military Department, Military Relief Fund Fiscal Office 360 Broad St Hartford CT 06105-3795 Treasurer, State of Connecticut/Military Relief Fund Organ Transplant Fund Assists Connecticut residents in paying for the unmet medical and ancillary needs of organ transplant candidates and recipients. Department of Social Services Accounts Receivable 55 Farmington Ave Hartford CT 06105 Commissioner of Social Services/Organ Transplant Fund Safety Net Services Fund Protects the children of families who are no longer eligible for public assistance benefits. Department of Social Services Accounts Receivable 55 Farmington Ave Hartford CT 06105 Commissioner of Social Services/Safety Net Fund Mental Health Community Investment Account Funds mental health prevention, treatment and recovery services delivered by private not for profit agencies in local communities. Department of Mental Health and Addiction Services, Fiscal Division MS#14FIS PO Box 341431 Hartford, CT 06134 Treasurer, State of Connecticut/Mental Health Community Investment Account Page 7 Important Information Tax Assistance DRS is ready to help you get answers to your Connecticut tax questions. Visit the DRS website at portal.ct.gov/DRS or call 800-382-9463 (Connecticut calls outside the Greater Hartford calling area only) or 860-297-5962 (from anywhere) during business hours, Monday through Friday, 8:30 a.m. to 4:30 p.m. For walk-in assistance, refer to the back cover for a list of DRS offices. If you visit, be sure to bring: • Copy 2 of your federal Forms W-2 and any other forms showing Connecticut income tax withholding; • Your Schedules CT K-1 and Schedules CT-1041 K-1 showing a PE Tax Credit allocated to you (if applicable); • Your Social Security Number (SSN) card, photo identification, and proof of qualifying property tax payments if you are claiming a property tax credit; and • Your completed federal income tax return. 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 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 receive Forms W-2 and 1099 on or before January 31 and Schedules CT K-1 on or before March 15. If you receive an additional federal Form W-2, 1099, or Schedule CT K-1 after filing your Connecticut income tax return, you may be required to file Form CT-1040X, Amended Connecticut Income Tax Return for Individuals. See Amended Returns, on Page 37. Most taxpayers qualify to electronically file their Connecticut income tax return. See Filing the Connecticut Income Tax Return Electronically, on Page 9. You must use blue or black ink 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. Do not send Forms W-2, Forms 1099, or Schedules CT K-1 with your Connecticut income tax return. Page 8 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. 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. Check the correct filing status on your return. 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 their 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-1040CRC, Claim of Right Credit. Check the box on the first page of your return if you are filing Form CT-2210, Underpayment of Estimated Income Tax by Individuals, Trust, 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 16. 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-1040, on Page 13. If you qualify to claim the Connecticut Earned Income Tax Credit (CT EITC), complete and attach Schedule CT-EITC, Connecticut Earned Income Tax Credit. Part-year residents and Nonresidents of Connecticut do not qualify for the CT EITC. Elect direct deposit, by completing Lines 25a through 25c, for the fastest way to receive your refund. This option is not available to first-time filers. If you do not elect 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 the 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 the CT-1040ES, Estimated Connecticut Income Tax Payment Coupon for Individuals, and you are filing a 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. Do not include estimated payments that you recharacterized to a pass-through entity of which you are a member or partner. Who Must File a Connecticut Resident Return You must file a Connecticut resident income tax return if you were a resident for the entire year and any of the following is true for the 2018 taxable year: • You had Connecticut income tax withheld; • You made estimated tax payments to Connecticut or a payment with Form CT-1040 EXT; • You had a PE Tax Credit amount which does not fully offset your Connecticut tax liability; • 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). If none of the above apply, do not file a Connecticut resident income tax return. 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-1040, Schedule 1. Gross income includes income from all 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, S corporations, estates, or trusts; • IRA distributions; • Unemployment compensation; • • Federally taxable Social Security benefits; and Federally taxable disability benefits. Gross Income Test You must file a Connecticut income tax return if your gross income for the 2018 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) with dependent child. The following examples explain the gross income test for a Connecticut resident: Example 1: Your only income is from a sole proprietorship and you file federal Form 1040 reporting 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, you must file a Connecticut income tax return. Example 2: You 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, you do not have to file a Connecticut income tax return unless Connecticut tax was withheld or estimated tax payments were made. Example 3: You are a single individual. You received $15,000 in wage income and $1,000 in federally-exempt interest from California state bonds. Your gross income (federal adjusted gross income with any additions to income from Form CT-1040, Schedule 1, Line 31, Interest on state and local government obligations other than Connecticut) is $16,000. Therefore, you must file a Connecticut income tax return. 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. Electronically filing and paying your taxes is easy and accurate. It provides you with confirmation of receipt and reduces the possibility of errors. While some taxpayers may be reluctant to make electronic payments for security reasons, we want to assure you that our electronic funds transfer is safe and secure. 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 you have never filed a Connecticut income tax return, but you have a valid Connecticut driver’s license or Connecticut non-driver ID; Page 9 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 and select For Individuals for information on other e-filing options; You are not filing Form CT-1040CRC, Claim of Right Credit; You are not filing Form CT-19IT, Title 19 Status Release Form; 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, 2018 Connecticut Electronic Filing Payment Voucher, with your payment. 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 the 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 a Connecticut Resident Return on Page 9. However, if you do not have funds to pay your Connecticut income tax, complete Form CT-19IT, Title 19 Status Release, and attach it to the front of your Connecticut income tax return if the following two conditions apply: You were a Title 19 recipient during 2018; and Medicaid assisted in the payment of your long-term care in a nursing or convalescent home during 2018. Completing this form authorizes DRS to verify your Title 19 status for 2018 with the Department of Social Services. • • Page 10 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 a Connecticut Resident Return are met. The executor, administrator, or surviving spouse must check the box next to the deceased taxpayer’s SSN on the front page of the return; 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 2018, 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. 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 a Connecticut Resident Return, on Page 9. 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 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 filing separately. Resident, Part-Year Resident, or Nonresident 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 2018 taxable year if: • Connecticut was your domicile (permanent legal residence) for the entire 2018 taxable year; or • You were not domiciled in Connecticut but you maintained a permanent place of abode in Connecticut during the entire 2018 taxable year and spent a total of more than 183 days in Connecticut during the 2018 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 18 and Special Information for Nonresident Aliens on Page 10. If you are a resident and you meet the requirements for Who Must File a Connecticut Resident Return for the 2018 taxable year, you must file Form CT-1040. Part-Year Resident You are a part-year resident for the 2018 taxable year if you changed your permanent legal residence by moving into or out of Connecticut during the 2018 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 for Who Must File Form CT-1040NR/PY for the 2018 taxable year, you must file Form CT-1040NR/PY, Connecticut Nonresident and Part-Year Resident Income Tax Return. Nonresident You are a nonresident for the 2018 taxable year if you are neither a resident nor a part-year resident for the 2018 taxable year. If you are a nonresident and you meet the requirements for Who Must File Form CT-1040NR/PY for the 2018 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 2018 even if your domicile was Connecticut. Group A 1. You did not maintain a permanent place of abode in Connecticut for the entire 2018 taxable year; 2. You maintained a permanent place of abode outside of Connecticut for the entire 2018 taxable year; and 3. You spent not more than 30 days in the aggregate in Connecticut during the 2018 taxable year. 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 the 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 a residence but are stationed elsewhere are subject to Connecticut income tax. Page 11 If you enlisted in the military 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 11. 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, income you receive from Connecticut sources while you are a nonresident may be subject to Connecticut income tax. See the instructions for a Connecticut nonresident contained in the instruction booklet for Form CT-1040NR/PY. See Example, below. 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 the income. Spouses of military personnel, see Informational Publication 2018(15), 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. Page 12 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 2018(15), Connecticut Income Tax Information for Armed Forces Personnel and Veterans. Connecticut Adjusted Gross Income Connecticut adjusted gross income is your federal adjusted gross income as properly reported on federal Form 1040, Line 7, and any Connecticut modifications required to be reported on Form CT-1040, Schedule 1. 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 2018 are references to your taxable year beginning during 2018. 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, 2019. If you are not a calendar year filer, your return is due on or 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-1040 is filed late or all the tax due is not paid with the return, see Interest and Penalties on Page 15 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. Visit portal.ct.gov/TSC to file your extension electronically. 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 15 if you do not pay all the tax due with your extension request. You do not need to file Form CT-1040 EXT if you: • Have requested an extension of time to file your 2018 federal income tax return and you expect to owe no additional Connecticut income tax for the 2018 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); or • Pay your expected 2018 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 2018 and wish to 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 is 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-1040. 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-1040 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. Mailing Addresses for Form CT-1040 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 To ensure proper posting of your payment, write “2018 Form CT-1040” and your SSN(s) (optional) on the front of your check. Estimated Tax Payments for Tax Year 2019 You must make estimated income tax payments if your Connecticut income tax (after tax credits) minus Connecticut tax withheld and any PE Tax Credit is $1,000 or more and you expect your Connecticut income tax withheld and any PE Tax Credit to be less than your required annual payment for the 2019 taxable year. Your required annual payment for the 2019 taxable year is the lesser of: • 90% of the income tax shown on your 2019 Connecticut income tax return; or • 100% of the income tax shown on your 2018 Connecticut income tax return, if you filed a 2018 Connecticut income tax return that covered a 12-month period. You do not have to make estimated income tax payments if: • You were a Connecticut resident during the 2018 taxable year, and you did not file a 2018 income tax return because you had no Connecticut income tax liability; or Page 13 • You were a nonresident or part-year resident with Connecticut-sourced income during the 2018 taxable year and you did not file a 2018 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 2018 taxable year, your required annual payment is 90% of the income tax shown on your 2019 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 2019 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 2019 using a paper return. If you made estimated tax payments in 2018 by mail, you will automatically receive coupons for the 2019 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 2018, use Form CT-1040ES to make your first estimated income tax payment. Form CT-1040ES is available on the DRS website. If you file this form, additional preprinted coupons will be mailed to you. To avoid making estimated tax payments, you may request your employer or payer to withhold additional amounts from your wages, pension or annuity to cover the taxes on other income. You can make this change by giving your employer or payer a revised Form CT-W4, Employee’s Withholding Certificate or Form CT-W4P, Withholding Certificate for Pension or Annuity Payments. For help in determining the correct amount of Connecticut withholding to be withheld from your income, see Informational Publication 2019(7), Is My Connecticut Withholding Correct? Special Rules for Farmers and Fishermen If you are a farmer or fisherman (as defined in IRC § 6654(i)(2)) who is required to make estimated income tax payments, you must make only one payment. Your payment is due on or before January 15, 2020, for the 2019 taxable year. The required installment is the lesser of 66 2/3% of the income tax shown on your 2019 Connecticut income tax return or 100% of the income tax shown on your 2018 Connecticut income tax return. If you file a 2019 Connecticut income tax return on or before March 1, 2020, and pay in full the amount computed on the return as payable on or before that date, you will not be charged interest for underpayment of estimated tax. Farmers or fishermen who use these special rules must complete and attach Form CT-2210, Underpayment of Estimated Tax by Individuals, Trusts, and Estates, to their Connecticut income tax return to avoid being billed for interest on the underpayment of estimated income tax. Check Box D of Form CT-2210, Part I, and the box for Form CT-2210 on the front of Form CT-1040. See Informational Publication 2010(16), Farmer’s Guide to Sales and Use Taxes, Motor Vehicle Fuels Tax, Estimated Income Tax, and Withholding Tax, or Informational Publication 2009(14), Fisherman’s Guide to Sales and Use Taxes and Estimated Income Tax. Filing Form CT-2210 You may be charged interest if you did not pay enough tax through withholding or estimated payments, or both, by any installment due date, or if any PE Tax Credit reported to you on Schedule CT K-1, Part III, Line 1, or Schedule CT-1041 K-1, Part IV, Line 1, is not sufficient to cover your tax liability by the installment due date. Use Form CT-2210 to calculate interest on the underpayment of estimated tax. Form CT-2210 and detailed instructions are available from DRS. However, this is a complex form and you may prefer to have DRS calculate the interest. If so, do not file Form CT-2210 and DRS will send you a bill. 2019 Estimated Tax Due Dates Due dates of installments and the amount of required payments for 2019 calendar year taxpayers are: April 15, 2019 25% of your required annual payment June 15, 2019 25% of your required annual payment (A total of 50% of your required annual payment should be paid by this date.) September 15, 2019 January 15, 2020 25% of your required annual payment (A total of 75% of your required annual payment should be paid by this date.) 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 14 Interest and Penalties In general, interest and penalty apply to any portion of the tax not paid on or before the original due date of the return. Interest If you do not pay the tax when due, you will owe interest at 1% per month or fraction of a month until the tax is paid in full. You may be charged interest if you did not pay enough tax through withholding or estimated payments, or both, by any installment due date, or if any PE Tax Credit reported to you on Schedule CT K-1, Part III, Line 1, or Schedule CT-1041 K-1, Part IV, Line 1, is not sufficient to cover your tax liability by the installment due date. This is true even if you are due a refund when you file your tax return. See Interest on Underpayment of Estimated Tax on this page. Interest on underpayment or late payment of tax cannot be waived. Penalty for Late Payment or Late Filing The penalty for late payment or underpayment of income or use tax is 10% of the tax due. If a request for an extension of time to file has been granted, you can avoid a penalty for failure to pay the full amount due by the original due date if you: • Pay at least 90% of the income tax shown to be due on the return on or before the original due date of the return; and • Pay the balance due with the return on or before the extended due date. If you file your return electronically and pay your balance due by check, then your check must be postmarked on whichever is earlier: the date of acceptance of the electronic return or the extended due date. If no tax is due, DRS may impose a $50 penalty for the late filing of any return or report required by law to be filed. Penalty for Failure to File If you do not file your return and DRS files a return for you, the penalty for failure to file is 10% of the balance due or $50, whichever is greater. If you are required to file Form CT-1040X, Amended Connecticut Income Tax Return for Individuals, and fail to do so, a penalty may be imposed. Waiver of Penalty To make a waiver of penalty request, taxpayers must complete and submit Form DRS-PW, Request for Waiver of Civil Penalty, to the DRS Operations Bureau/Penalty Waiver. Taxpayers may mail Form DRS-PW to the address listed below or fax it to the Operations Bureau/Penalty Waiver at 860-297-5727. Department of Revenue Services Operations Bureau/Penalty Waiver PO Box 5089 Hartford CT 06102-5089 DRS will not consider a penalty waiver request unless it is accompanied by a fully completed and properly executed Form DRS-PW. The Commissioner cannot consider a request received more than one year from the date a notice of such penalty was first sent to the taxpayer requesting the waiver. For the taxpayer who self reports the penalty on his or her tax return, the filing date of such return is considered the date on which the taxpayer was notified of such penalty. See Policy Statement 2018(3), Requests for Waiver of Civil Penalties. Interest on Underpayment of Estimated Tax You may be charged interest if you did not pay enough tax through withholding or estimated payments, or both, by any installment due date, or if any PE Tax Credit reported to you on Schedule CT K-1, Part III, Line 1, or Schedule CT-1041 K-1, Part IV, Line 1, is not sufficient to cover your tax liability by the installment due date. This is true even if you are due a refund when you file your tax return. Interest is calculated separately for each installment. Therefore, you may owe interest for an earlier installment even if you paid enough tax later to make up the underpayment. Interest at 1% per month or fraction of a month will be added to the tax due until the earlier of April 15, 2019, or the date on which the underpayment is paid. If you file a 2018 Connecticut income tax return on or before January 31, 2019, and pay in full the amount computed on the return as payable on or before that date, you will not be charged interest for failing to make the estimated payment due January 15, 2019. A farmer or fisherman who is required to make estimated income tax payments will not be charged interest for failing to make the estimated payment due January 15, 2019, if he or she files a 2018 Connecticut income tax return on or before March 1, 2019, and pays in full the amount computed on the return as payable on or before that date. Refund Information There are two ways to get your refund: Direct Deposit or Paper Check. The fastest way to get your refund is to file your return electronically and elect direct deposit. Paper return
Tax Instruction Booklet
More about the Connecticut Tax Instruction Booklet Individual Income Tax TY 2018
If you are self employed, even part of the time, you need to file estimated quarterly taxes using form CT-140ES. Tax Instruction Booklet requires you to list multiple forms of income, such as wages, interest, or alimony .
We last updated the Form CT-1040 Instruction Booklet in January 2019, so this is the latest version of Tax Instruction Booklet, fully updated for tax year 2018. You can download or print current or past-year PDFs of Tax Instruction Booklet 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|
|CT-1040NR/PY Instructions||Tax Instruction Booklet: CT-1040 for Nonresidents/Part-Year Residents|
|Form CT-1040NR-PY||Nonresident/Part-Year Resident Tax Return|
|Form CT-8379||Nonobligated Spouse Claim|
Connecticut usually releases forms for the current tax year between January and April. We last updated Connecticut Tax Instruction Booklet from the Department of Revenue Services in January 2019.
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 Tax Instruction Booklet
We have a total of four past-year versions of Tax Instruction Booklet in the TaxFormFinder archives, including for the previous tax year. Download past year versions of this tax form as PDFs here:
CT-1040 Booklet 20161212.indd
CT-1040 Booklet, 2015 Connecticut 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.