Connecticut Form CT-1040 Instruction Booklet

Form CT-1040 Instruction Booklet
Tax Instruction Booklet
Department of Revenue Services
State of Connecticut
(Rev. 12/23)

Form CT-1040

Connecticut Resident Income Tax Return Instructions

For additional information on the Connecticut Income Tax, visit
portal.ct.gov/DRS/Individuals/Resident-Income-Tax/Tax-Information.

Before you begin, gather all your records, including all your
federal Forms W‑2 and 1099, and your completed federal
income tax return. You will need the information on your
federal return to complete your Connecticut return.

1	 Taxpayer Information

Filing Status - Check only one box.
Check the appropriate box to indicate your filing status.
Generally, your filing status on your Connecticut return
must match your federal income tax filing status. If you
are not certain of your filing status for 2023, consult the
information in your federal income tax booklet or call the
IRS at 800‑829‑1040.
There are certain situations where you and your spouse may
be required to file separate Connecticut returns even though
you file jointly for federal purposes. See Special Rules for
Married Individuals, below.
If your filing status is qualifying surviving spouse on federal
Form 1040, or federal Form 1040‑SR, do not enter your
deceased spouse’s name or SSN in the spaces provided for
spouse’s name and spouse’s SSN on Form CT‑1040.
Special Rules for Married Individuals
When one spouse is a Connecticut resident or a nonresident
and the other spouse is a part-year resident, each spouse who
is required to file a Connecticut income tax return must file
as married filing separately.
When one spouse is a Connecticut resident and the other is a
nonresident, each spouse who is required to file a Connecticut
income tax return must file as married filing separately unless
they:
•	 File jointly for federal income tax purposes; and
•	 Elect to be treated as if both were Connecticut residents
for the entire taxable year.
When both spouses are part‑year residents of Connecticut
but do not have the same period of residency, married filing
separately is their Connecticut income tax filing status.
When both spouses are part‑year residents of Connecticut
and have the same period of residency, they may choose
married filing jointly or married filing separately as their
Connecticut income tax filing status.
When both spouses are nonresidents of Connecticut and
only one has income derived from or connected with
sources within Connecticut, only that spouse is required
to file a Connecticut income tax return and that spouse’s
Connecticut income tax filing status is married filing
separately for Connecticut unless they both elect to file a joint

2023

Connecticut income tax return. If an election is made, married
filing jointly is their Connecticut income tax filing status.
When one spouse is a nonresident alien and the other is a
citizen or resident of the United States, each spouse who is
required to file a Connecticut income tax return must file as
married filing separately unless:
•	 An election is made by the nonresident alien and his or
her spouse to file a joint federal income tax return;
•	 A married filing joint return is filed for federal income
tax purposes; and
•	 The spouses are otherwise required or permitted to file a
joint Connecticut income tax return.
The election to file a joint return means the joint federal
adjusted gross income must be used on Form CT‑1040,
Line 1. It also means the spouse who would not otherwise be
required to file is now jointly and severally liable for any tax
liability associated with the filing of the income tax return.
If you are filing a joint federal return with your spouse but
are required to file a separate Connecticut return, each of you
will have to recompute your federal adjusted gross income as
if you were each filing as married filing separately for federal
income tax purposes. Enter on Form CT‑1040, Line 1, your
income as recalculated.
Social Security Number, Name, and Address
You must write your Social Security Number (SSN), name,
and address in the space provided. If your city or town
of residence is different from your mailing address enter
the additional information in the space provided. Indicate
a country code when filing your Connecticut income tax
return. If your mailing address is in the United States,
enter “USA.” The full list of country codes is available at
portal.ct.gov/DRS-countrycodes. If you file a joint return,
enter your SSN and your spouse’s SSN in the order they
appear on your federal return. If the taxpayer is deceased,
see Deceased Taxpayers at portal.ct.gov/DRS/Individuals/
Resident-Income-Tax/Tax-Information.
If you are a nonresident alien and do not have an SSN, enter
your Individual Taxpayer Identification Number (ITIN) in
the space provided above your name. Nonresident aliens who
have applied for an ITIN from the Internal Revenue Service by
filing federal Form W‑7, but have not received the ITIN, must
wait for the ITIN to be issued before filing their Connecticut
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 the federal Form W‑7. The Department of Revenue
Services (DRS) will contact you upon receipt of your return.
DRS 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. See Special Information
for Nonresident Aliens at portal.ct.gov/DRS/Individuals/
Resident-Income-Tax/Tax-Information.

2
	Calculate Your Tax

Line 1: Federal Adjusted Gross Income
Enter your federal adjusted gross income from your 2023
federal income tax return. This is the amount reported on federal
Form 1040, Line 11, or federal Form 1040‑SR, Line 11.
Nonresident aliens, see Special Information for Nonresident
Aliens at portal.ct.gov/DRS/Individuals/Resident-Income-Tax/
Tax-Information.
Line 2: Additions
Enter the amount from Form CT‑1040, Schedule 1, Line 38.
See Additions to Federal Adjusted Gross Income on Page 7.
Line 3
Add Line 1 and Line 2 and enter the total.
Line 4: Subtractions
Enter the amount from Form CT‑1040, Schedule 1, Line 50.
See Subtractions From Federal Adjusted Gross Income on
Page 8.
Line 5: Connecticut Adjusted Gross Income
Subtract Line 4 from Line 3 and enter the result. This is your
Connecticut adjusted gross income.
Line 6: Income Tax
For each filing status, if the amount on Line 5 is: $12,000 or
less for married filing separately; $15,000 or less for single;
$19,000 or less for head of household; or $24,000 or less for
married filing jointly, or qualifying surviving spouse, enter
“0” on Line 6. You do not owe any income tax. Otherwise,
calculate your tax using one of the following methods.
If your Connecticut adjusted gross income is less than or equal
to $102,000, you may use the Tax Tables on the DRS website
at portal.ct.gov/DRS/DRS-Forms/Current-Year-Forms/
Calculators-and-Tables.
If your Connecticut adjusted gross income is more than
$102,000, you may:
1.	 Calculate your tax liability instantly by visiting myconneCT
at portal.ct.gov/DRS-myconneCT. Below the Individuals
panel on the myconneCT homepage, select View Tax
Calculators, then select Income Tax Calculator; or
2.	 Use the Tax Calculation Schedule beginning on Page 19.
After you have found the calculated tax, enter that amount
on Line 6.
Line 7: Credit for Income Taxes Paid to Qualifying
Jurisdictions
If all or part of the income reported on this return is subject
to income tax in a qualifying jurisdiction and you have filed
a return and paid income taxes to that jurisdiction, complete
Form CT‑1040, Schedule 2, and enter the amount from
Line 59 here. See Schedule 2 - Credit for Income Taxes Paid
to Qualifying Jurisdictions on Page 11.
You must attach a copy of your return filed with the
qualifying jurisdiction(s) or the credit will be disallowed. If

Form CT-1040 Instructions (Rev. 12/23)	

filing your return electronically, you must keep a copy of the
return filed with the qualifying jurisdiction(s) and provide a
copy if requested by DRS.
Line 8
Subtract Line 7 from Line 6 and enter the result. If Line 7 is
greater than Line 6, enter “0.”
Line 9: Connecticut Alternative Minimum Tax
If you were required to pay the federal alternative minimum
tax for 2023, you must file Form CT‑6251, Connecticut
Alternative Minimum Tax Return - Individuals. Enter the
amount shown on Form CT‑6251, Line 23.
Line 10
Add Line 8 and Line 9 and enter the total.
Line 11: Credit for Property Taxes Paid on Your
Primary Residence, Motor Vehicle, or Both
If Line 10 is zero, skip Line 11 and Line 12 and go to Line 13.
Otherwise, complete and attach Schedule 3 on Page 4 of Form
CT‑1040 to be allowed this credit. Enter the amount from
Line 68 on Line 11. Be certain to include all of the requested
information or your credit may be denied. See Schedule 3 Property Tax Credit on Page 13.
You may also use the online Property Tax Credit Calculator
by visiting myconneCT at portal.ct.gov/DRS-myconneCT.
Below the Individuals panel on the myconneCT homepage,
select View Tax Calculators, then select Property Tax Credit
Calculator. If you choose to use the online calculator, you
must complete Lines 60 through 63 of Schedule 3, Property
Tax Credit found on Form CT‑1040, Page 4 or your credit
will be denied.
The credit is limited to Connecticut residents who paid
qualifying property tax on their residence and/or motor
vehicle.
The maximum property tax credit allowed is $300 per return
regardless of filing status. See Property Tax Credit Table on
Page  26. This credit can be used to offset only your 2023
income tax. You may not carry this credit forward and it
is not refundable.
Line 12
Subtract Line 11 from Line 10 and enter the result. If less
than zero, enter “0.”
Line 13: Allowable Credits
Enter the amount from Schedule CT‑IT Credit, Income Tax
Credit Summary, Part 1, Line 11.
Use Schedule CT‑IT Credit to claim the Angel Investor Tax
Credit, the Birth of a Stillborn Child Tax Credit, or to claim
the credit for a prior year alternative minimum tax from Form
CT‑8801, Credit for Prior Year Connecticut Minimum Tax
for Individuals, Trusts, and Estates.
Do not use Schedule CT‑IT Credit to report any PE Tax Credit.
If you have any PE Tax Credit, use Schedule CT‑PE,
Pass‑Through Entity Tax Credit.
Page 2 of 27

Line 14: Connecticut Income Tax
Subtract Line 13 from Line 12 and enter the result. If less
than zero, enter “0.”
Line 15: Individual Use Tax
Complete the Connecticut Individual Use Tax Worksheet
on Page 27, then complete and attach Schedule 4 on Page 4
of Form CT‑1040. Enter on Line 15 the total use tax due as
reported on Schedule 4, Line 69. You must enter “0” if no
Connecticut use tax is due; otherwise you have not filed a
use tax return. Failure to report use tax due on Line 15
and include that amount in Line 16 may subject you to a
penalty of up to $5,000, imprisonment for up to 5 years,
or both. See Page 15 for more information on the use tax.
Line 16 and Line 17
Add Line 14 and Line 15. Enter the total on Line 16 and
Line 17.

	Payments
3

Line 18: Connecticut Tax Withheld
For each federal Form W‑2 or 1099 where Connecticut
income tax was withheld, enter the following on Lines 18a
through 18e.
Enter the number from Box b in
Column A of Form CT -1040.
2023 22222

a Employee’s social security number

OMB No. 1545-0008
1 Wages, tips, other compensation 2 Federal income tax withheld

b Employer identification number (EIN)

XX-XXXXXXX

c Employer's name, address, and ZIP code

D Control number
e Employee's first name and initial

Last name

Suff.

3 Social security wages

4 Social security tax withheld

5 Medicare wages and tips

6 Medicare tax withheld

7 Social security tips

8 Allocated tips

9

10 Dependent care benefits

11 Nonqualified plans

12a
C
o
d
e

Enter the amount from
Box 16 in Column B
of Form CT -1040.

13

Statutory
employee

Retirement
plan

Third-party
sick pay

12b
C
o
d
e

14 Other

12c
C
o
d
e

12d
C
o
d
e

f Employee’s address and ZIP code
15 State Employer's state ID number

CT

Form

Copy 1

16 State wages, tips, etc. 17 State income tax 18 Local wages, tips, etc. 19 Local income tax

XXX.00

and Tax
Statement
W-2 Wage

XXX.00

2023

For State, City , or Local Tax Department

Box 15 must show CT
to be claimed as
Connecticut withholding.

20 Locality name

Department of the Treasury - Internal Revenue Service

Enter the amount from Box 17
(in whole dollars) in Column C
of Form CT -1040.

Column A: Enter the Employer Identification Number or
Payer Identification Number.
Column B: Enter the amount of Connecticut wages, tips, etc.
Column C: Enter the amount of Connecticut income tax
withheld.
You must complete all columns or your Connecticut
withholding will be disallowed. Do not include tax withheld
for other states or federal income tax withholding.

Form CT-1040 Instructions (Rev. 12/23)	

If you have more than five federal Forms W‑2 or 1099 showing
Connecticut income tax withheld, you must complete and
attach Supplemental Schedule CT‑1040WH, Connecticut
Income Tax Withholding. Enter on Supplemental Schedule
CT‑1040WH only Connecticut income tax withholding
amounts not previously reported on Form CT‑1040. Enter
the total from Supplemental Schedule CT‑1040WH, Line 3,
on Line 18f, Column C.
Add all entries in Column C (including the additional amount
from Supplemental Schedule CT‑1040WH) and enter the total
Connecticut income tax withheld on Line 18.
Do not send copies of Forms W‑2 or 1099. Keep these for
your records. DRS may request them at a later date.
When filing Form CT‑8379, Nonobligated Spouse Claim,
attach all Forms W‑2 and 1099, and Schedules CT K‑1 and
CT‑1041 K‑1.
Line 19: All 2023 Estimated Tax Payments
Enter the total of all Connecticut estimated tax payments,
advance tax payments, and any overpayments of Connecticut
income tax applied from a prior year. Include any 2023 estimated
payments made in 2024. Do not include any refunds received.
Line 20: Payments Made With Form CT-1040 EXT
If you filed Form CT‑1040 EXT, Application for Extension
of Time to File, enter the amount you paid with that form.
Line 20a: Connecticut Earned Income Tax Credit
A Connecticut resident taxpayer may claim an earned income
tax credit (CT EITC) against the Connecticut income tax due
for the taxable year. The amount of the CT EITC is 40% of
the earned income credit claimed and allowed on the federal
income tax return for the same taxable year. If the CT EITC
exceeds the taxpayer’s Connecticut income tax liability, the
excess is considered an overpayment and will be refunded
without interest.
Complete Schedule CT‑EITC, Connecticut Earned Income
Tax Credit, to calculate your earned income tax credit. Enter
the amount from Schedule CT‑EITC, Line 16.
You must attach a copy of your schedule or the credit will
be disallowed.
Line 20b: Claim of Right Credit
If you have claim of right income for federal tax purposes and
are claiming the federal claim of right credit on your 2023
federal return, you may also be entitled to a claim of right
credit for Connecticut income tax purposes.
If during your 2023 taxable year you had to repay income
you included in your Connecticut adjusted gross income for
an earlier taxable year, and the amount you repaid is more
than $3,000, you may be able to claim a credit against your
Connecticut income tax for your 2023 taxable year. If you are
eligible for the Connecticut claim of right credit, complete
Form CT‑1040 CRC, Claim of Right Credit, to claim a credit
equal to the Connecticut income tax you would not have had
to pay if the repaid amount had not been included in your
Connecticut adjusted gross income in the earlier taxable year.

Page 3 of 27

You are eligible for the Connecticut claim of right credit if
you meet all of the following conditions:
•	 You were a resident, nonresident, or part-year resident
individual who included income in Connecticut adjusted
gross income for an earlier taxable year(s) of receipt. A
trust or estate is not eligible to claim relief for Connecticut
income tax purposes;
•	 You were required to repay the income during your 2023
taxable year (year of repayment);
•	 The amount of the repayment exceeds $3,000; and
•	 You determined your federal income tax liability for
the year of repayment under IRC §  1341(a)(4) (see
Exceptions) or IRC § 1341(a)(5).
If the claim of right credit exceeds your Connecticut income
tax liability, the excess is considered an overpayment and
will be refunded.
Complete Form CT-1040 CRC, Claim of Right Credit, to
calculate your claim of right credit. Enter the amount from
Form CT-1040 CRC, Line 6.
Line 20c: Pass-Through Entity Tax Credit
If you are a partner or a member of a PE required to pay the
Connecticut PE Tax, or if you are a beneficiary of a trust or estate
that is a member of such PE, and you receive a Schedule CT K‑1
or a Schedule CT‑1041 K‑1 reporting an amount of PE Tax Credit,
then you must complete Schedule CT‑PE, Pass‑Through Entity Tax
Credit. Enter the amount from Schedule CT‑PE, Line 1.
You must attach a copy of Schedule CT‑PE or the
credit will be disallowed.
Do not send copies of Schedules CT K‑1 and CT‑1041 K‑1,
but keep them for your records. DRS may request them at a
later date.
Line 21: Total Payments and Refundable Credits
Add Lines 18, 19, 20, 20a, 20b, and 20c and enter the total.
This is the total of your Connecticut tax payments and
refundable credits.

4	Overpayment

No. 101

Date

Pay to the
Order of

$

Name of your Bank
Street Address
City, State, Zip Code

092125789 	
	Routing Number

091 025 025413	

0101



Form CT-1040 Instructions (Rev. 12/23)	

Name of Depositor
Street Address
City, State, Zip Code



Line 22: Overpayment
If Line  21 is greater than Line  17, subtract Line  17 from
Line 21 and enter the result. This is your overpayment.
To properly allocate your overpayment, go to Lines 23 through
25.
If Line 21 is less than Line 17, you have an amount due. Go
to Line 26.
If you were required to make estimated income tax payments,
but you did not pay enough tax through withholding, estimated
payments, or both, by any installment due date, or if any PE
Tax Credit reported to you on Schedule CT K‑1, Part 3, Line 1,
or Schedule CT‑1041 K‑1, Part 4, Line 1, is not sufficient to
cover your tax liability, your overpayment may be reduced
by the interest due on the underpayment of estimated tax. See
Form CT‑2210, Underpayment of Estimated Income Tax by
Individuals, Trusts, and Estates.

Line 23: Amount of Line 22 You Want Applied to
Your 2024 Estimated Tax
Enter the amount of your 2023 overpayment you want
applied to your 2024 estimated Connecticut income tax. It
will be treated as estimated tax paid on April 15, 2024, if
your return is filed on time or if you filed a timely request
for extension and your return is filed within the extension
period. Payments received after April 15, 2024, will be
applied as of the date of receipt. Your request to apply this
amount to your 2024 estimated income tax is irrevocable.
Line 24: CHET Contribution from Schedule CT-CHET
Complete and attach Schedule CT‑CHET, Connecticut
Higher Education Trust (CHET) 529 College Savings Plan
Contribution, to contribute all or part of your Connecticut
individual income tax overpayment (Line 22) to a CHET 529
College Savings Plan Account(s). Enter the total contributions
as reported on Schedule CT‑CHET, Line 4. Your contribution
is irrevocable.
Line 24a: Total Contributions to Designated Charities
You may make a contribution on this return only if you are
entitled to a refund of an overpayment. Your contribution is
limited to your refund amount. Complete and attach Schedule 5
on Page 4 of Form CT‑1040. Enter the total contributions
as reported on Schedule 5, Line  70. Your contribution is
irrevocable.
You may also make direct contributions by following the
instructions on Page 18.
Line 25: Refund
Subtract Lines 23, 24, and 24a from Line 22 and enter the
result. This is the amount of your refund.
There are two refund options available:
Option 1: Direct Deposit
Complete Lines 25a, 25b, and 25c to have your refund directly
deposited into your checking or savings account. See Refund
Information at portal.ct.gov/DRS/Individuals/ResidentIncome-Tax/Tax-Information.
This option is not available to first-time filers.
Enter your nine-digit bank routing number and your bank
account number on Lines 25b and 25c. Your bank routing
number is generally the first nine‑digit number printed on
your check or savings withdrawal slip. Your bank account
number generally follows the bank routing number. Do not
include the check number as part of your account number.
Bank account numbers can be up to 17 characters.

Account Number

Page 4 of 27

Federal banking rules require DRS to inquire whether the
direct deposit request is to a foreign bank account. If it is,
DRS will issue your refund by check.
Option 2: Paper Check
If you do not elect or qualify for direct deposit, a refund check
will be issued and refund processing may be delayed.
Your overpayment will be applied in the following order:
penalty and interest you owe DRS; other taxes you owe
DRS; debts to other Connecticut state agencies; federal taxes
you owe the IRS; taxes you owe to other states; amounts
designated by you to be applied to your 2024 estimated tax;
CHET contributions; and charitable contributions designated
by you. Any remaining balance will be refunded to you.

If you file a joint return, you must review the information with
your spouse. When both you and your spouse sign the return,
you become jointly and severally responsible for paying the
full amount of tax, interest, and penalties due. In addition, you
and your spouse will be jointly entitled to any refund which
will be issued to both names listed on the return.

5	 Amount You Owe

Paid Preparer Signature
Anyone you pay to prepare your return must sign and
date it. Paid preparers must also enter their Preparer Tax
Identification Number (PTIN), and their firm’s Federal
Employer Identification Number (FEIN) in the spaces
provided.

Line 26: Tax Due
If Line  17 is greater than Line  21, subtract Line  21 from
Line 17 and enter the result. This is the amount of tax you owe.
Line 27: Penalty for Late Payment or Late Filing
Late Payment Penalty: The penalty for late payment or
underpayment of income or use tax is 10% of the amount due.
See Penalty for Late Payment or Late Filing at portal.ct.gov/
DRS/Individuals/Resident-Income-Tax/Tax-Information.
Late Filing Penalty: In the event that 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.
Line 28: Interest for Late Payment or Late Filing
If you fail to pay the tax when due, interest will be charged
at 1% per month or fraction of a month from the due date
until payment is made.
Line 29: Interest on Underpayment of Estimated
Tax
If Line 14 minus Line 18 and Line 20c is $1,000 or more,
you may owe interest on estimated tax you either underpaid
or paid late. Form CT‑2210, Underpayment of Estimated
Income Tax by Individuals, Trusts and Estates, can help you
determine whether you did underestimate and will help you
calculate interest. However, this is a complex form and you
may prefer to have DRS calculate the interest. If so, do not
file Form CT‑2210; leave this line blank and DRS will send
you a bill. Interest on underpayment of estimated income tax
stops accruing on the earlier of the day you pay your tax or
April 15, 2024.
Line 30: Total Amount Due
Add Lines 26 through 29 and enter the total. This is the total
amount you owe. Pay the amount in full with your return.
See Payment Options at portal.ct.gov/DRS/Individuals/
Resident-Income-Tax/Tax-Information.

6
	 Sign Your Return

After you complete Form CT‑1040, sign your name and write
the date you signed the return. Your spouse must also sign
and enter the date if this is a joint return. The signature line
is on Page 2 of Form CT‑1040.

Form CT-1040 Instructions (Rev. 12/23)	

Taxpayer’s Email Address
DRS tax returns have a line for taxpayers to enter their email
address. If you provide an email address, DRS may use it to
notify you of tax changes. However, DRS will never use email
to ask for sensitive information, such as your Social Security
Number. If you ever have questions about an email claiming
to be from DRS, contact DRS directly.

Alternative Signature Methods
DRS conforms to IRS Notice 2004‑54, which provides for
alternative preparer signature procedures for federal income
tax paper returns that paid practitioners prepare on behalf of
their clients. Specifically, income tax return preparers may
sign original returns, amended returns, or requests for filing
extensions by rubber stamp, mechanical device, or computer
software program. These alternative methods of signing
must include either a facsimile of the individual preparer’s
signature or the individual preparer’s printed name.
Income tax return preparers who use alternative methods of
signing must provide all of the other preparer information
that is required on returns and extensions, such as the
name, address, relevant employer identification number, the
preparer’s tax preparer tax identification number (PTIN), and
phone number.
Paid preparers can follow the same procedure with respect
to paper Connecticut income tax returns prepared on behalf
of their clients. This procedure only applies to preparers’
signatures. It does not affect other signature requirements
for taxpayers, and does not apply to documents other than
tax returns.
Third Party Designee
To authorize DRS to contact your friend, family member, or
any other person to discuss your 2023 tax return, enter the
designee’s name, telephone number, and any five numbers
the designee chooses as his or her personal identification
number (PIN). To authorize DRS to contact the paid preparer
who signed your return, enter “Preparer” in the space for
the designee’s name. You do not have to provide the other
information requested.

Page 5 of 27

If you enter a designee’s name, you and your spouse, if filing
a joint return, are authorizing DRS to call the designee to
answer any questions that may arise during the processing of
your return. You are also authorizing the designee to:
•	

Give DRS any information missing from your return;

•	

Call DRS for information about the processing of your
return or the status of your refund or payment; and

•	

Respond to certain DRS notices you have shared with
the designee about math errors, offsets, and return
preparation. The notices will not be sent to the designee.

Once DRS processes the return, the authorization ends. The
authorization cannot be revoked. However, the authorization
will automatically end no later than the due date (without
regard to extensions) for filing your 2024 tax return. This is
April 15, 2025, for most taxpayers.
Selecting a designee does not replace a power of attorney and
will not authorize the designee to receive refunds, bind you to
anything (including additional tax liabilities), or represent you
before DRS. To authorize another individual to represent you
or act on your behalf, you must complete LGL‑001, Power
of Attorney.

Order of Attachments

If you are submitting any of the following, paper clip them
to the front of your Connecticut income tax return in the
following order:
•	 Your check for payment of the tax due. See Pay by Mail
at portal.ct.gov/DRS/Individuals/Resident-Income-Tax/
Tax-Information.
•	 Form CT‑19IT, Title 19 Status Release;
•	 Form CT‑1127, Application for Extension of Time for
Payment of Income Tax;
•	 Form CT‑1040 CRC, Claim of Right Credit;
•	 Form CT‑8379, Nonobligated Spouse Claim; and
•	 Federal Form 1310, Statement of Person Claiming Refund
Due a Deceased Taxpayer.

Form CT-1040 Instructions (Rev. 12/23)	

If you are submitting any of the following, attach them to the
back of your return:
•	 Supplemental Schedule CT‑1040WH, Connecticut
Income Tax Withholding;
•	 Schedule CT‑PE, Pass‑Through Entity Tax Credit;
•	 Schedule CT‑IT Credit, Income Tax Credit Summary;
•	 Schedule CT‑CHET, Connecticut Higher Education
Trust (CHET) 529 College Savings Plan Contribution;
•	 Schedule CT‑EITC, Connecticut Earned Income Tax
Credit;
•	 Schedule CT‑Dependent, Connecticut Resident
Dependent Information; and
•	 Form CT‑6251, Connecticut Alternative Minimum Tax
Return - Individuals.
You do not need to attach a copy of your previously‑filed
Form CT‑1040 EXT.

Filing Your Return

Keep a copy of this return and all attachments for your records.
Attach to this return any required schedules and forms. Do
not attach copies of your federal income tax return or federal
schedules.
DRS does not provide return envelopes for mailing completed
forms. See Mailing Addresses for Form CT-1040, at portal.
ct.gov/DRS/Individuals/Resident-Income-Tax/TaxInformation for the correct address to use for returns with
payments, returns with refunds, or payments only.

Page 6 of 27

Form CT-1040 Schedules
The following modifications to federal adjusted gross income
are provided in Conn. Gen. Stat. §  12-701(a)(20). Your
federal adjusted gross income may not be further modified in
determining your Connecticut adjusted gross income except
as expressly provided by Conn. Gen. Stat. § 12-701(a)(20).

Schedule 1 – Modifications to Federal Adjusted
Gross Income
Additions to Federal Adjusted Gross Income
Enter all amounts as positive numbers.

Line 31: Interest on State and Local Government
Obligations Other Than Connecticut
Enter the total amount of interest income derived from state
and municipal government obligations (other than obligations
of the State of Connecticut or its municipalities) which is not
taxed for federal income tax purposes. Do not enter interest
income derived from government obligations of Puerto Rico,
Guam, American Samoa, or U.S. Virgin Islands.
Line 32: Exempt-Interest Dividends From a
Mutual Fund Derived From State or Municipal
Government Obligations Other Than Connecticut
Enter the total amount of exempt-interest dividends received
from a mutual fund that are derived from state and municipal
government obligations other than obligations of the State
of Connecticut or its municipalities. If the exempt-interest
dividends are derived from obligations of Connecticut
and other states, enter only the percentage derived from
non-Connecticut obligations. Do not enter exempt-interest
dividends derived from government obligations of Puerto
Rico, Guam, American Samoa, or U.S. Virgin Islands.
Example: A fund invests in obligations of many states including
Connecticut. Assuming that 20% of the distribution is from
Connecticut obligations, the remaining 80% would be added back
on this line.

Line 33: Taxable Amount of Lump-Sum
Distributions From Qualified Plans Not Included
in Federal AGI
If you filed federal Form 4972, Tax on Lump‑Sum Distributions,
with your federal Form 1040, or federal Form 1040‑SR, to
compute the tax on any part of a distribution from a qualified
plan, enter that part of the distribution on Line 33. Do not enter
any part of the distribution reported on federal Form 1040,
Line 5a, or federal Form 1040‑SR, Line 5a, or federal
Form 1040, Schedule D, or federal Form 1040‑SR, Schedule D.
Line 34: Beneficiary’s Share of Connecticut
Fiduciary Adjustment
If you have any income from an estate or trust, your share
of any Connecticut modifications (that is, your share of the
Form CT-1040 Instructions (Rev. 12/23)	

Connecticut fiduciary adjustment) that applies to the income
will be shown on Form CT‑1041, Connecticut Income Tax
Return for Trusts and Estates, Schedule CT‑1041B, Part 1,
Column 5. Your share of these modifications should be
provided to you by the fiduciary on Schedule CT‑1041 K‑1.
If your share of these modifications is an amount greater than
zero, enter the amount on Line 34. If the amount is less than
zero, enter the amount on Line 46.
If you are a beneficiary of more than one trust or estate, enter
the net amount of all modifications, if greater than zero, on
Line 34 or, if less than zero, on Line 46.
Line 35: Loss on Sale of Connecticut State and
Local Government Bonds
Enter the total losses from the sale or exchange of notes,
bonds, or other obligations of the State of Connecticut or
its municipalities used to determine gain (loss) for federal
income tax purposes whether or not the entire loss is used in
computing federal adjusted gross income.
Line 36: Section 168(k) Federal Bonus
Depreciation Deduction
Enter 100% of the amount of § 168(k) bonus depreciation
reported for federal income tax purposes for this taxable year,
provided such amount is deducted in determining the federal
AGI for the taxable year.
Line 36a: Section 179 Federal Deduction
Enter 80% of the §  179 amount deducted in determining the
federal AGI for the taxable year.
Line 37: Other
Use Line 37 to report any of the following modifications:
1.	 Add back any treaty income reported on federal
Form 1040NR if a nonresident alien. Enter the words
“treaty income” in the space provided.
2.	 Add back any loss or deduction of an enrolled member
of the Mashantucket Pequot Tribe who resides in Indian
country of such tribe or any loss or deduction of an
enrolled member of the Mohegan Tribe who resides in
Indian country of such tribe where the loss or deduction
is derived from or connected with Indian country of
the tribe. Enter the words “Mashantucket Pequot Tribe
enrolled member” or “Mohegan Tribe enrolled member,”
as the case may be.
3.	 Add back any Connecticut income tax deducted on the
federal income tax return to arrive at federal adjusted
gross income. Do not add back any Connecticut income
tax deducted on federal Form 1040, Schedule A, or federal
Form 1040‑SR, Schedule A.
4.	 Add back any expenses paid or incurred for the production
(including management, conservation, and maintenance of
property held for the production) or collection of income
exempt from Connecticut income tax which were deducted
on the federal return to arrive at federal adjusted gross
income.
Page 7 of 27

5.	 Add back any amortizable bond premium on bonds
producing interest income exempt from Connecticut
income tax which premiums were deducted on the federal
return to arrive at federal adjusted gross income.
6.	 Add back any interest or dividend income on obligations or
securities of any authority, commission, or instrumentality
of the United States which federal law exempts from
federal income tax but does not exempt from state income
taxes.
7.	 Add back to the extent deductible in determining
federal adjusted gross income, any interest expenses
on indebtedness incurred or continued to purchase or
carry obligations or securities (the income from which
is exempt from Connecticut income tax).
8.	 Add back the following distributions from an MRA
established pursuant to Conn. Gen. Stat. § 32-9zz:
•	 100% of any distribution from such MRA not used
to purchase machinery or equipment for use in
Connecticut or manufacturing facilities, as defined
in Conn. Gen. Stat. §  12-81(72), or for workforce
training, development or expansion in Connecticut;
and
•	 100% of any return of money remaining in the
MRA at the end of the five-year period after such
account’s creation or organization, including any
interest earned.
	See Special Notice 2012(6), 2012 Legislative Changes
Affecting the Income Tax.
9.	 Add back, to the extent not properly includible in
gross income for federal income tax purposes, any
compensation required to be recognized under 26 U.S.C.
§ 457A that is attributable to services performed within
Connecticut.
10.	 Also use Line  37 to report any additions to federal
adjusted gross income required for Connecticut income
tax purposes which are not listed on Lines 31 through 36.
Line 38: Total Additions
Add Lines 31 through 37 and enter the total.
Subtractions From Federal Adjusted Gross
Income
Enter all amounts as positive numbers.

Line 39: Interest on U.S. Government Obligations
Enter the total amount of interest income (to the extent
includible in federal adjusted gross income) derived from
U.S. government obligations, which federal law prohibits
states from taxing (for example, U.S. government bonds such
as Saving Bonds Series EE or Series HH and U.S. Treasury
bills or notes).
For Series EE U.S. Savings Bonds, you are entitled to include
on Line 39 only the amount of interest subject to federal
Form CT-1040 Instructions (Rev. 12/23)	

income tax after exclusion of the amounts reported on federal
Form 8815. In general, you will report the net taxable amount
on federal Form 1040, Schedule B, or federal Form 1040‑SR,
Schedule B.
Do not enter the amount of interest income derived from
Federal National Mortgage Association (Fannie Mae) bonds,
Government National Mortgage Association (Ginnie Mae)
bonds, and Federal Home Loan Mortgage Corporation
(Freddie Mac) securities. Federal law does not prohibit states
from taxing interest income derived from these obligations
and this interest income is taxable for Connecticut income
tax purposes.
Do not enter the amount of interest paid to you on any federal
income tax refund.
Line 40: Exempt Dividends From Certain
Qualifying Mutual Funds Derived From U.S.
Government Obligations
Enter the total amount of exempt dividends received from a
qualifying mutual fund that are derived from U.S. government
obligations. A mutual fund is a qualifying fund if, at the close
of each quarter of its taxable year, at least 50% of the value
of its assets consists of U.S. government obligations. The
percentage of dividends that are exempt dividends should be
reported to you by the mutual fund.
Do not enter the amount of dividend income derived from
Federal National Mortgage Association (Fannie Mae) bonds,
Government National Mortgage Association (Ginnie Mae)
bonds, and Federal Home Loan Mortgage Corporation
(Freddie Mac) securities. Federal law does not prohibit states
from taxing income derived from these obligations, and this
income is taxable for Connecticut income tax purposes.
Example: A qualifying mutual fund pays a dividend of $100. Of
the distribution, 55% is attributable to U.S. Treasury bills and 45%
to other investments. The amount reported on Line 40 is $55.

See Policy Statement 2005(2), Connecticut Income Tax on
Bonds or Obligations Issued by the United States Government,
by State Governments, or Municipalities.
Line 41: Social Security Benefit Adjustment
If you receive Social Security benefits subject to federal
income tax, you may reduce or eliminate the amount of your
benefits subject to Connecticut income tax.
Your Social Security benefits are fully exempt from Connecticut
income tax if your required filing status is single or married
filing separately and the amount reported on Form CT‑1040,
Line 1, is less than $75,000; or married filing jointly, qualifying
surviving spouse, or head of household and the amount reported
on Form CT‑1040, Line 1, is less than $100,000. If this is the
case, enter on Line 41 the amount of federally taxable Social
Security benefits reported on federal Form 1040, Line 6b, or
federal Form 1040‑SR, Line 6b.

Page 8 of 27

Your Social Security benefits are partially exempt from
Connecticut income tax if your federal adjusted gross income
is above the threshold for your filing status.
If you used the worksheets in the instructions to federal
Forms 1040 and 1040‑SR to calculate the amount of taxable
Social Security benefits, complete the Social Security Benefit
Adjustment Worksheet, on Page 24, and enter the amount from
Line F on Line 41.
You may use the online Social Security Benefit
Adjustment Calculator by visiting myconneCT at
portal.ct.gov/DRS-myconneCT. Below the Individuals
panel on the myconneCT homepage, select View Tax
Calculators, then select Social Security Benefit Calculator.
If you are using a worksheet not from a federal publication,
such as one you printed from a tax preparation program on
your computer or one given to you by your tax preparer, you
should verify that the line references from these worksheets
are the same as the equivalent federal publication to be certain
you are using the proper amounts.
Line 42: Refunds of State and Local Income Taxes
Enter the amount of taxable refunds of state and local income
taxes reported on federal Form 1040, Schedule 1, Line 1,
or federal Form 1040‑SR, Schedule 1, Line 1. If federal
Form 1040, Schedule 1, Line 1, or federal Form 1040‑SR,
Schedule 1, Line 1, is blank, enter “0.”
Line 43: Tier 1 and Tier 2 Railroad Retirement
Benefits and Supplemental Annuities
If you received Tier 1 or Tier 2 (or both) railroad retirement
benefits or supplemental annuities during 2023, you may
deduct the amount included in your federal adjusted
gross income, but only to the extent the benefits were not
already subtracted on Line 41. Enter the amount of Tier 1
and Tier  2 railroad retirement benefits reported on federal
Form 1040, Line 5b, or federal Form 1040-SR, Line 5b.
Likewise, enter the amount of railroad unemployment
benefits, including sickness benefits paid by the Railroad
Retirement Board (RRB) in lieu of unemployment benefits,
to the extent included in your federal adjusted gross income.
However, do not enter sickness benefit paid by the RRB
resulting from an on-the-job injury because these benefits
are not included in your federal adjusted gross income.
Line 44: Military Retirement Pay
Subtract income received as military retirement pay, to the
extent included in federal adjusted gross income, if you are
a retired member of the armed forces of the United States
or the National Guard (retired military member) or if you
are a beneficiary receiving survivor benefits under an option
or election made by a deceased retired military member.
Payments received by a former spouse of a retired military
member, under a final decree of divorce, dissolution,
annulment, or legal separation or a court ordered, ratified, or
approved property settlement incident to a decree dividing
military retirement pay, do not qualify for the military
retirement pay exclusion.
Form CT-1040 Instructions (Rev. 12/23)	

Line 45: 50% of Connecticut Teachers’ Retirement
Pay
Subtract 50% of the income received from the Connecticut
Teachers’ Retirement System, provided you properly included
such income in federal adjusted gross income for federal
income tax purposes. You must have received a Form 1099‑R
from the Connecticut Teachers’ Retirement Board to be eligible
for the subtraction modification. See Special Notice 2022(4),
2022 Legislative Changes Affecting the Income Tax.
Line 46: Beneficiary’s Share of Connecticut
Fiduciary Adjustment
If you have any income from an estate or trust, your share
of any Connecticut modifications (that is, your share of the
Connecticut fiduciary adjustment) that applies to the income
will be shown on Form CT‑1041, Schedule CT‑1041B, Part 1,
Column 5. Your share of these modifications should be
provided to you by the fiduciary on Schedule CT‑1041 K‑1.
If your share of these modifications is an amount less than
zero, enter the amount on this line. If the amount is greater
than zero, enter the amount on Line 34.
If you are a beneficiary of more than one trust or estate, and
the net amount of all modifications is less than zero, then enter
the net amount on this line.
Line 47: Gain on Sale of Connecticut State and
Local Government Bonds
Enter the total of all gains from the sale or exchange of notes,
bonds, or other obligations of the State of Connecticut or
its municipalities used to determine gain (loss) for federal
income tax purposes.
Line 48: Connecticut Higher Education Trust
(CHET) Contributions
Enter your contributions to a CHET account(s). The
modification cannot exceed the maximum allowable
contribution. The maximum CHET contribution that may be
subtracted is the lesser of (1) the amount of contributions to all
CHET accounts during the taxable year; or (2)(A) $5,000 for
each individual taxpayer (including individuals whose filing
status on their Connecticut income tax return is single, head
of household, filing separately, or (B) $10,000 for individuals
whose filing status on their Connecticut income tax return is
filing jointly or qualifying surviving spouse.
If your CHET contribution during the taxable year exceeds
the maximum CHET contribution, the excess may be carried
forward for the five succeeding taxable years. The CHET
carryforward amount subtracted from federal adjusted gross
income in the succeeding taxable years can not exceed the
maximum CHET contribution limitations above. CHET
contributions made in the current taxable year should be used
before using any carryover from prior years.
Enter the CHET account number in the space provided. If
you made contributions to more than one account, you enter
only one account number. See Special Notice 2006(11), 2006
Legislative Changes Affecting the Income Tax.
Page 9 of 27

Line 48a: 25% of Section 168(k) Federal Bonus
Depreciation Deduction Added Back in Preceding
Four Years
Enter 25% of the § 168(k) federal deduction that you added back on
your Connecticut income tax return in the four preceding taxable years.
Line 48b: Pension or Annuity Income
If your filing status is single, married filing separately, or head of
household with federal AGI for the taxable year of less than $75,000
or married filing jointly with federal AGI of less than $100,000, and
you receive distributions from certain pensions and annuities, such
as from a defined benefit plan, 401(k), 403(b) or 457(b) plans, enter
100% of such distribution. If the distribution is from an IRA (other
than a Roth IRA), enter 25%.
The following amounts are not included in Line 4b or 5b of the
federal income tax return and should not be added when calculating
the pension and annuity amount for Line 48b of Form CT‑1040:
•	 Disability pensions received before the recipient met
the minimum retirement age set by his or her employer;
•	 Corrective distributions of excess elective deferrals
or other excess contributions to retirement plans; and
•	 Distributions from Roth IRAs.
On federal Form 1040, or federal Form 1040‑SR, IRA distributions
and pensions and annuities are reported on separate lines.
To determine the amount to enter on this line, begin with the amount
reported on federal Form 1040, Line 5b, or federal Form 1040‑SR,
Line 5b, Taxable amount of pensions and annuities. From the amount
on Line 5b, subtract military retirement pay, Tier 1 and Tier 2 railroad
retirement benefits, and Connecticut teachers’ retirement pay. To
the result, add 25% of the amount reported on federal Form 1040,
Line 4b, or federal Form 1040 SR, Line 4b, Taxable amount of IRA
distributions. Enter the amount on this line.
Military retirement pay and Tier 1 and Tier 2 railroad retirement benefits
are fully exempt from Connecticut income tax, and should not be included
in this calculation. The subtraction modification for these benefits are
reported on Lines 44 and 43, respectively, on the Connecticut return.
A survivor or beneficiary of a plan participant may claim the
100% subtraction modification for Connecticut income tax purposes
in the same manner as the plan participant would have been allowed
to claim the modification, if such survivor or beneficiary is required
to report the pension and annuity income on the federal income
tax return in the same manner as the plan participant would have
reported such income.
Retired teachers may claim either the teachers’ pension subtraction
modification or the pension and annuity subtraction modification
(if their federal adjusted gross income is below the applicable
threshold) on the income they receive from the Connecticut Teachers’
Retirement System.
Connecticut law does not allow a double benefit for the same income.
Example: Anna’s filing status on her Connecticut resident return is
single. She receives $30,000 from the Teachers’ Retirement System and
$38,000 in pension payments from XYZ Corporation for the taxable
year. Both amounts are includible in Anna’s federal gross income, and
her federal AGI is less than $75,000. On the Connecticut return for the
taxable year, Anna may subtract $15,000 ($30,000 x 50%) on Line 45,
Schedule 1, Form CT‑1040, and $38,000 as a pension and annuity income
subtraction modification on Line 48b, Schedule 1, Form CT‑1040.

Form CT-1040 Instructions (Rev. 12/23)	

Line 48c: Ordinary and necessary business expenses
for taxpayers licensed under Chapter 420f or 420h that
are not claimed for federal income tax purposes
For taxpayers that are licensed under either Chapter 420f or 420h of
the Connecticut General Statutes, enter the amount of ordinary and
necessary business expenses allowed under IRC § 162 in determining
the Connecticut income tax liability.
Line 49: Other
Use Line 49 to report any of the following modifications:
1.	 Subtract any income or gain of an enrolled member of the
Mashantucket Pequot Tribe who resides in Indian country of such
tribe or any income or gain of an enrolled member of the Mohegan
Tribe who resides in Indian country of such tribe where the income
or gain is derived from or connected with Indian country of the tribe.
Enter the words “Mashantucket Pequot Tribe enrolled member” or
“Mohegan Tribe enrolled member,” as the case may be.
2.	 Subtract the amount of interest earned on funds deposited in
a Connecticut individual development account to the extent
included in federal adjusted gross income.
3.	 Subtract any interest paid on indebtedness incurred to acquire
investments that provide income taxable in Connecticut but
exempt for federal purposes, that is not deductible in determining
federal adjusted gross income, and is attributable to a trade or
business of that individual.
4.	 Subtract expenses paid or incurred for the production (including
management, conservation, and maintenance of property held
for production) or collection of income taxable in Connecticut
but exempt from federal income tax, that are not deductible in
determining federal adjusted gross income, and are attributable
to a trade or business of that individual.
5.	 Subtract the amount of any distributions you received from the
CHET fund as a designated beneficiary to the extent includible
in your federal adjusted gross income.
	 Congress passed legislation excluding from federal gross
income any distribution from a qualified state tuition
program (such as CHET) to the extent the distribution is
used to pay for qualified higher education expenses (Pub.  L.
No. 107‑16, § 402). To the extent any distribution from CHET
is excluded from federal gross income, the amount should
not be reported as a subtraction modification on Line 49.
6.	 Subtract any amortizable bond premium on bonds that provide
interest income taxable in Connecticut but exempt from federal
income tax, which premiums were not deductible in determining
federal adjusted gross income and are attributable to a trade or
business of that individual.
7.	 Subtract the amount of any interest income from notes, bonds, or
other obligations of the State of Connecticut included in federal
adjusted gross income. This modification includes any Build
America Bond tax credit amount if the Build America Bond,
as described in Section  1531 of the American Recovery and
Reinvestment Act of 2009, was issued by the State of Connecticut
or a Connecticut subdivision and only to the extent the credit
amount is treated as interest includible in gross income for federal
income tax purposes.
8.	 Subtract the amount of any interest, dividends, or capital gains
earned on contributions to accounts established for a designated
beneficiary under the Connecticut Homecare Option Program
for the Elderly to the extent the interest, dividends, or capital
gains are properly included in the gross income of the designated
beneficiary for federal income tax purposes.
9.	 Subtract contributions made to an MRA established pursuant to
Conn. Gen. Stat. § 32-9zz.
	See Special Notice 2012(6), 2012 Legislative Changes Affecting
the Income Tax.
Page 10 of 27

10.	 Subtract 25% of the §  179 federal deduction that you
added back on your Connecticut income tax return in the
four preceding taxable years.
11.	 Subtract the amount, to the extent included in federal
adjusted gross income, of any financial assistance
received from the Crumbling Foundations Assistance
Fund; paid to or on behalf of the taxpayer under the
Collapsing Foundations Credit Enhancements Program;
or financial assistance received from a municipality by
the taxpayer to repair concrete foundations that have
deteriorated due to the presence of pyrrhotite.
12.	 Subtract certain costs incurred by the taxpayer in
connection with the donation to another person of human
bone marrow, or all or part of a human liver, pancreas,
kidney, intestine, or lung, for the purpose of organ
transplantation. The costs include lost wages, medical
expenses, travel expenses, and housing expenses. The
subtraction can not exceed $10,000.
13.	 Subtract the Bioscience Venture Capital amount as
calculated on Schedule CT‑BIO, Bioscience Worksheet.
14.	 Subtract the amount of any Earned Income Tax Enhancement
payment received during the 2023 taxable year, to the
extent included in federal adjusted gross income.
Do not use Line  49 to subtract income subject to tax in a
qualifying jurisdiction (see Schedule 2 - Credit for Income
Taxes Paid to Qualifying Jurisdictions, below) or income of a
nonresident spouse. See Special Rules for Married Individuals
on Page 1.
Line 50: Total Subtractions
Add Lines 39 through 49 and enter the total.

Schedule 2 – Credit for Income Taxes Paid to
Qualifying Jurisdictions
You must first complete Form CT‑1040, Schedule 3 - Credit for
Property Taxes Paid on Your Primary Residence, Motor Vehicle,
or Both, before completing Schedule 2. See the instructions for
Schedule 3 - Property Tax Credit on Page 13.

Am I Eligible for the Credit for Income Taxes Paid
to Qualifying Jurisdictions?
If you are a resident of Connecticut and if any part of your
income was taxed by a qualifying jurisdiction, you may be
able to claim a credit against your Connecticut income tax
liability for qualifying income tax payments you have made.
Taxpayers seeking a credit for alternative minimum taxes
paid to another jurisdiction must complete Form CT‑6251,
Connecticut Alternative Minimum Tax Return - Individuals,
to calculate their alternative minimum tax credit.
Qualifying Jurisdiction
A qualifying jurisdiction includes another state of the United
States, a local government within another state, or the District
of Columbia. A qualifying jurisdiction does not include the
State of Connecticut, the United States, or a foreign country or
its provinces (for example, Canada and Canadian provinces).
Qualifying Income Tax Payments
Qualifying income tax payments are income taxes you
actually paid on income:
•	 Derived from or connected with sources within the
qualifying jurisdiction; and
•	 Subject to tax in the qualifying jurisdiction.
Form CT-1040 Instructions (Rev. 12/23)	

Qualifying income tax payments include direct and indirect
pro rata share of taxes paid to a qualifying jurisdiction by a
pass‑through entity if such pass‑through entity is subject to
a pass‑through entity tax substantially similar to the PE Tax
imposed in Connecticut.
Certain qualifying jurisdictions impose on electing employers
a tax on wages. The tax is calculated based on your (the
employee) wages. The qualifying jurisdiction allows you to
take a credit for the tax paid by your employer. Although the
tax is paid on your behalf, it is not income tax withholding.
This type of tax is generally referred to as an employer
compensation expense tax.
For Connecticut income tax purposes, qualifying income tax
payments include the amount of the employer compensation
expense tax credit allowed by the qualifying jurisdiction.
Income Derived From or Connected With Sources
Within a Qualifying Jurisdiction
•	 Compensation received for personal services performed
in a qualifying jurisdiction;
•	 Compensation received as an employee for personal
services performed from a home office in Connecticut
for an employer in a qualifying jurisdiction that applies a
convenience of the employer test in determining whether
nonresident compensation is derived from or connected
with sources within the qualifying jurisdiction;
•	 Income from a business, trade, or profession carried on
in a qualifying jurisdiction;
•	 Gambling winnings from a state-conducted lottery.
See Informational Publication 2015(23), Connecticut
Income Tax Treatment of State Lottery Winnings Received
by Residents and Nonresidents of Connecticut; or
•	 Income from real or tangible personal property situated
in a qualifying jurisdiction.
Income from intangibles, such as stocks and bonds, is not
considered derived from or connected with sources within
a qualifying jurisdiction unless the income is from property
employed in a business, trade, or profession carried on in
that jurisdiction.
What Payments Do Not Qualify
•	 Income tax payments made to a qualifying jurisdiction on
income not derived from or connected with sources within
the qualifying jurisdiction (such as wages not derived
from or connected with sources within the qualifying
jurisdiction);
•	 Income tax payments made to a qualifying jurisdiction
on income not included in your Connecticut adjusted
gross income;
•	 Income tax paid to a jurisdiction that is not a qualifying
jurisdiction, including a foreign country or its provinces
(for example, Canada and Canadian provinces);
•	 Alternative minimum tax paid to a qualifying jurisdiction;
•	 Income tax paid to a qualifying jurisdiction if you claimed
credit on that jurisdiction’s income tax return for income
tax paid to Connecticut; or
•	 Penalties or interest on income taxes you paid to a
qualifying jurisdiction.
Page 11 of 27

Limitations to the Credit
The total credit is limited to whichever of the following
amounts is least:
•	 The amount of income tax paid to the qualifying
jurisdiction;
•	 The portion of Connecticut income tax due on the
Connecticut adjusted gross income sourced in the
qualifying jurisdiction; or
•	 The amount of your Connecticut income tax entered on
Form CT‑1040, Line 6.
How to Calculate the Credit
You must first complete your income tax return(s) for the
qualifying jurisdiction(s). Then complete the Schedule 2 Worksheet on Page 25 to determine the amount to enter on
Schedule 2, Line 53.
The allowed credit must be separately computed for each
qualifying jurisdiction. Use separate columns for each
qualifying jurisdiction for which you are claiming a credit.
Attach a copy of all income tax returns filed with
qualifying jurisdictions to your Connecticut income tax
return or the credit will be disallowed.
Taxpayers filing Form CT‑1040 electronically should
retain copies of all income tax returns filed with qualifying
jurisdictions for three years from the date of filing. The forms
must be provided to DRS upon request.
Schedule 2 provides two columns, A and B, to compute
the credit for two jurisdictions. If you need more than two
columns, create a worksheet identical to Schedule 2 and attach
it to the back of your Form CT‑1040.
If you are claiming credit for income taxes paid to another
state and to one of its political subdivisions, follow these
rules to determine your credit.
A.	 If the same amount of income is taxed by both the city and
state (see example for Line 56 on Page 13):
2.	 Use only one column on Form CT‑1040, Schedule 2, to
calculate your credit;
3.	 Enter the same income taxed by both city and state in
that column on Schedule 2; and
4.	 Combine the amounts of tax paid to the city and the state
and enter the total on Line 57 of that column.
B.	 If the amounts of income taxed by both the city and state
are not the same:
3.	 Use two columns on Form CT‑1040, Schedule 2;
4.	 Include only the same income taxed by both jurisdictions
in the first column; and
5.	 Include the excess income taxed by only one of the
jurisdictions in the next column.

Schedule 2 – Worksheet Instructions

Complete the Schedule 2 - Worksheet to determine the portion
of your Connecticut adjusted gross income derived from a
qualifying jurisdiction. For each line in Column 2, enter the
items of income from Column 1 that meet all of the following
conditions listed below.
•	 The income is derived from or connected with sources
within a qualifying jurisdiction;
Form CT-1040 Instructions (Rev. 12/23)	

•	

The income is reported on an income tax return filed with
that qualifying jurisdiction and subject to income tax in
the jurisdiction; and
•	 You have paid income tax on the income to that qualifying
jurisdiction.
If you paid income tax to more than one qualifying jurisdiction,
you must complete a separate worksheet for each jurisdiction.
Keep the worksheet with your 2023 tax records. Do not attach
it to your tax return.
Column 1
Enter on Lines 1 through 15 of the worksheet the corresponding
amounts entered on your federal income tax return, federal
Form 1040, or federal Form 1040‑SR, and Schedule 1.
Enter on Line 17 of the worksheet the amount entered on
Line 26 of Schedule 1 of your federal income tax return.
Enter on Line 19 of the worksheet the net amount of your
Connecticut modifications to federal adjusted gross income.
Subtract Form CT‑1040, Schedule 1, Line 50, from Line 38
to arrive at this amount.
Column 2
For each line, enter that portion of the amount entered on
the same line of Column 1 you reported on an income tax
return filed with (and on which income tax was paid to) the
qualifying jurisdiction. On Line 17, enter only the portion of
the total federal adjustments to income directly related to
income sourced in the qualifying jurisdiction. On Line 19,
enter only the portion of Connecticut modifications directly
related to income sourced in the qualifying jurisdiction. The
fact that the qualifying jurisdiction may take into account your
entire adjusted gross income (to compute the rate at which
your income sourced in that jurisdiction will be taxed) does
not mean you paid income tax to that jurisdiction on your
entire adjusted gross income. Because you are a nonresident
of the qualifying jurisdiction, you may be taxed by that
jurisdiction only on your income sourced in that jurisdiction.
Example 1: Amy, a Connecticut resident whose filing status is single,
earned wages of $150,000 from a company located in the State of
New York. Amy works inside and outside of New York and allocated
her wage income based upon the days worked in New York. She
determined $100,000 to be her New York State allocated wage income
and reported and paid this amount on her New York nonresident income
tax return. On her federal Form 1040, Line 1z, she entered $150,000.
When completing the Schedule 2 - Worksheet, she enters $150,000
in Column 1, Line 1, and $100,000 in Column 2, Line 1. Amy also
enters $100,000 on Form CT‑1040, Schedule 2, Line 53.
Example 2: Luke and Lee file a joint federal Form 1040 and a joint Form
CT‑1040. Lee’s wages as an employee working in Rhode Island are
$20,000 and Luke’s wages as an employee working in Connecticut are
$25,000. On their federal Form 1040, Line 1z, they enter $45,000. When
completing the Schedule 2 - Worksheet, Luke and Lee enter $45,000 in
Column 1, Line 1, and $20,000 in Column 2, Line 1. Luke and Lee also
enter $20,000 on Form CT‑1040, Schedule 2, Line 53.
Example 3: Linda is a sole proprietor of a business conducted at two
locations: one in Connecticut and one in Massachusetts. On Linda’s
federal Form 1040, Schedule 1, Line 3, she entered $100,000. Of the
$150,000 of gross income reported on federal Form 1040, Schedule C,
$90,000 is derived from the Massachusetts location. Of the $50,000
Page 12 of 27

of expenses reported on Schedule  C, $35,000 is derived from the
Massachusetts location. When completing the Schedule 2 - Worksheet,
Linda enters $100,000 in Column 1, Line 6, and $55,000 ($90,000 $35,000) in Column 2, Line 6. Linda also enters $55,000 on Form
CT‑1040, Schedule 2, Line 53.

Schedule 2 – Line Instructions

Line 51: Modified Connecticut Adjusted Gross
Income
Add to Connecticut adjusted gross income from Line  5
any net loss derived from or connected with sources in a
qualifying jurisdiction(s) where you were subject to income
taxation whether or not income tax was actually paid to the
jurisdiction(s). The modified amount is entered on Line 51.
Example: Fred’s Connecticut adjusted gross income of $60,000
includes income of $15,000 from business activities conducted in
Massachusetts and a net loss of $20,000 from a business conducted
in Rhode Island. He m