reglab/statecodes huggingface dataset:
Connecticut Administrative Code › Title 12 - Taxation › 740(a) - INCOME TAX › Part VI - Credit for income taxes paid to another jurisdiction › Section 12-704(a)-4 - Definitions

Current through July 10, 2024
(a) As used in this Part, unless the context
				otherwise requires:
(1) "Connecticut tax
				liability" means the Connecticut income tax determined pursuant to chapter 229,
				after subtracting any personal credit allowable under Section
				12-703
				of the general statutes, but before subtracting the credit for taxes paid to
				other qualifying jurisdictions allowable under Section
				12-704
				of the general statutes and the regulations of this Part, but does not include
				any net Connecticut minimum tax, as defined in section
				12-701
				of the General Statutes.
(2)
				"Income tax paid to a qualifying jurisdiction" means the lesser of (i) the
				income tax (other than an alternative minimum tax that is similar to that
				imposed under section
				12-700a
				of the General Statutes) that is actually due to a qualifying jurisdiction for
				the taxable year, exclusive of any interest and penalties, or (ii) the income
				tax (other than an alternative minimum tax that is similar to that imposed
				under section
				12-700a
				of the General Statutes) that is actually paid thereto for the taxable year,
				exclusive of any penalties or interest.
(3) "Income derived from or connected with
				sources within a qualifying jurisdiction" is to be construed so as to accord
				with the definition of the term "derived from or connected with sources within
				this state" set forth in Part II in relation to the adjusted gross income of a
				nonresident individual. Thus, the credit against Connecticut income tax is
				allowed for income tax imposed by another jurisdiction upon compensation for
				personal services performed in the other jurisdiction, income from a business,
				trade or profession carried on in the other jurisdiction, and income from real
				or tangible personal property situated in the other jurisdiction. On the other
				hand, the credit is not allowed for tax imposed by another jurisdiction upon
				income from intangibles, except where such income is from property employed in
				a business, trade or profession carried on in the other jurisdiction. For
				example, no credit is allowed for an income tax of another jurisdiction on
				dividend income not derived from property employed in a business, trade or
				profession carried on in such jurisdiction.
(4) "Qualifying jurisdiction" means a state
				of the United States, a political subdivision of such a state, or the District
				of Columbia, but does not mean the United States or any other nation or
				political subdivision of any other nation.
Connecticut Administrative Code › Title 12 - Taxation › 740(a) - INCOME TAX › Part VI - Credit for income taxes paid to another jurisdiction › Section 12-704(c)-1 - Disallowance where credit is claimed against the income tax imposed by a qualifying jurisdiction for a taxpayer's Connecticut tax liability

Current through July 10, 2024
(a) No credit for income tax paid to a
				qualifying jurisdiction shall be allowed if a taxpayer has claimed or shall
				claim a credit against the income tax imposed by such jurisdiction for the
				taxpayer's Connecticut tax liability on the same income.
(b) The following example illustrates the
				application of this section:
Example
: Taxpayer H, a resident individual, has
				  Connecticut adjusted gross income derived from or connected with sources within
				  qualifying jurisdiction Z, and files an income tax return with that
				  jurisdiction. Under the laws of jurisdiction Z, credit is allowed against the
				  income tax imposed by that jurisdiction, to persons who are nonresidents of
				  jurisdiction Z, for income tax payable to another jurisdiction on the same
				  income that is subject to the income tax imposed by jurisdiction Z. If Taxpayer
				  H, in filing his income tax return with jurisdiction Z, claims the credit
				  allowed under the laws of that jurisdiction for income tax payable to
				  Connecticut on the same income, Taxpayer H shall not be allowed a credit
				  against Connecticut income tax for income tax paid to jurisdiction Z.
(c) While this section pertains to
				Section
				12-704(c)
				of the general statutes, for purposes of supplementary interpretation, as the
				phrase is used in Section
				12-2
				of the general statutes, the adoption of this section is authorized by Section
				12-740(a)
				of the general statutes.
Connecticut Administrative Code › Title 12 - Taxation › 740(a) - INCOME TAX › Part VII - Partnerships and S corporations › Section 12-712(a)(1)-1 - Partnership income and deductions of a nonresident partner derived from Connecticut sources (Repealed)

Current through July 10, 2024
For 2014 repeal, see Sec. 54 of Public Act 14-187. (June
					 11, 2014)
Connecticut Administrative Code › Title 12 - Taxation › 740(a) - INCOME TAX › Part VII - Partnerships and S corporations › Section 12-712(a)(2)-1 - Nonresident shareholder's pro rata share of S corporation income derived from or connected with sources within Connecticut

Current through July 10, 2024
(a) The
				Connecticut adjusted gross income derived from or connected with sources within
				this state of a nonresident individual who is a shareholder of an S corporation
				that has any income, gain, loss or deduction derived from or connected with
				sources within Connecticut includes such shareholder's pro rata share of the S
				corporation's separately and nonseparately computed income or loss entering
				into federal adjusted gross income to the extent such income or loss is derived
				from or connected with Connecticut sources, as defined in Part II.
(b) With respect to a nonresident individual
				who is a shareholder of an S corporation that has any income, gain, loss or
				deduction derived from or connected with sources within Connecticut, the
				portion of such shareholder's pro rata share of the modifications described in
				§§
									12-715(a)-2
				and
				12-715(b)-2
				of this Part relating to the S corporation's separately and nonseparately
				computed income or loss that is derived from or connected with sources within
				Connecticut is to be determined so as to accord with the definition of the term
				"derived from or connected with sources within this state" set forth in Part
				II.
Connecticut Administrative Code › Title 12 - Taxation › 740(a) - INCOME TAX › Part VII - Partnerships and S corporations › Section 12-712(b)-1 - Special rules as to nonresident partners

Current through July 10, 2024
(a) In
				determining whether a nonresident partner's share of partnership income is
				derived from or connected with Connecticut sources, no effect is given to a
				provision in a partnership agreement which characterizes payments to a partner
				as either salary or other compensation paid or distributable for services
				rendered to the partnership by the partner, or as being interest or other
				consideration paid or distributable for the use of capital of a
				partner.
(b) Likewise, no effect is
				given to a provision in a partnership agreement which allocates to a
				nonresident partner, as income or gain derived from or connected with sources
				outside Connecticut, a greater proportion of such partner's distributive share
				of partnership income or gain than the ratio of partnership income or gain from
				sources outside Connecticut to partnership income or gain from all sources. For
				example, if a nonresident partner's distributive share of partnership income
				for federal income tax purposes is $5,000 and 60% of the partnership income is
				derived from or connected with Connecticut sources, the nonresident partner is
				required to report on the Connecticut nonresident income tax return $3,000 (60%
				of $5,000) as such partner's distributive share of partnership income derived
				from or connected with sources within this state, even though, under the
				partnership agreement, such partner's share of the total Connecticut income of
				the partnership may have been fixed at less than $3,000.
(c) Likewise, no effect is given to a
				provision in a partnership agreement which allocates to a nonresident partner a
				greater proportion of a particular partnership item of loss or deduction
				derived from or connected with sources within Connecticut than such partner's
				proportionate share for federal income tax purposes of partnership loss or
				deduction generally. For example, if a nonresident partner's distributive share
				of partnership loss for federal income tax purposes is $5,000, and 60% of the
				partnership loss is derived from or connected with Connecticut sources, the
				nonresident partner is required to report on the Connecticut nonresident income
				tax return $3,000 (60% of $5,000) as such partner's distributive share of
				partnership loss derived from or connected with sources within this state, even
				though, under the partnership agreement, such partner's share of the total
				Connecticut loss of the partnership may have been fixed at more than
				$3,000.
(d) While this section
				pertains to Section
				12-712(b)
				of the general statutes, for purposes of supplementary interpretation, as the
				phrase is used in Section
				12-2
				of the general statutes, the adoption of this section is authorized by Section
				12-712(a)
				of the general statutes.
Connecticut Administrative Code › Title 12 - Taxation › 740(a) - INCOME TAX › Part VII - Partnerships and S corporations › Section 12-715(a)-2 - Modification of S corporation items in shareholder's income tax return

Current through July 10, 2024
(a) In determining the Connecticut adjusted
				gross income of a resident shareholder of an S corporation, any of the
				modifications referred to in §§
									12-701(a)(20)-2
				and
				12-701(a)(20)-3
				of Part I that relate to an item of S corporation income or loss shall be made
				with respect to the pro rata share of the shareholder in such item as
				determined for federal income tax purposes, whether or not, in the
				shareholder's federal income tax return, such item is reflected in such
				shareholder's pro rata share of the separately computed income or loss or in
				such shareholder's pro rata share of the nonseparately computed income or
				loss.
(b) In determining
				Connecticut adjusted gross income, a resident shareholder shall combine the
				modifications relating to such shareholder's pro rata share of any S
				corporation item with the modification relating to any similar item from
				sources other than the S corporation. For example, if some of the S corporation
				income is derived from interest on bonds of another state, not subject to
				federal income tax, and if the individual income of a resident shareholder also
				includes similar bond interest, such shareholder shall add to federal adjusted
				gross income both the pro rata share of the S corporation income from such
				bonds and the interest from similar bonds that such shareholder received
				individually rather than from the S corporation.
(c) The amount of any modification to be made
				by a shareholder with respect to an S corporation item of income or loss is to
				be determined in accordance with such shareholder's pro rata share of such item
				for federal income tax purposes. If a modification relates to an item that is
				not taken into account for federal income tax purposes (such as interest income
				on bonds of other states), each shareholder's modification in respect to such
				an item is determined by such shareholder's pro rata share for federal income
				tax purposes of the S corporation income or loss.
(d) The modifications covered by this section
				do not apply to any item attributable to the shareholder directly and not
				reflected on the Connecticut S corporation informational return (Form
				CT-1120SI), such as a gain that the shareholder realizes on the sale of shares
				in the S corporation.
(e) While
				this section pertains to Section
				12-715(a)
				of the general statutes, for purposes of supplementary interpretation, as the
				phrase is used in Section
				12-2
				of the general statutes, the adoption of this section is authorized by Section
				12-740(a)
				of the general statutes.
Connecticut Administrative Code › Title 12 - Taxation › 740(a) - INCOME TAX › Part VII - Partnerships and S corporations › Section 12-715(b)-1 - Character of partnership items

Current through July 10, 2024
(a) In order that
				the modifications described in §
									12-715(a)-1
				of this Part, and the passive activity loss and capital loss limitations
				described in §
									12-711(b)-6
				of Part II, may be properly applied to partnership items of income, gain, loss
				or deduction, each of such partnership items shall have the same character for
				a partner for Connecticut income tax purposes as for federal income tax
				purposes. Where an item is not characterized for federal income tax purposes,
				the item shall have the same character for a partner as if realized directly
				from the source from which realized by the partnership or incurred in the same
				manner as incurred by the partnership. If a partnership item is not required to
				be taken into account for federal income tax purposes (such as interest on
				bonds of another state), the character of the item for a partner for
				Connecticut income tax purposes is the same as if the partner, as an
				individual, had realized or incurred the item directly.
(b) While this section pertains to Section
				12-715(b)
				of the general statutes, for purposes of supplementary interpretation, as the
				phrase is used in Section
				12-2
				of the general statutes, the adoption of this section is authorized by Section
				12-740(a)
				of the general statutes.
Connecticut Administrative Code › Title 12 - Taxation › 740(a) - INCOME TAX › Part VII - Partnerships and S corporations › Section 12-715(b)-2 - Character of S corporation items

Current through July 10, 2024
(a) In order that
				the modifications described in §
									12-715(a)-2
				of this Part, and the passive activity loss and capital loss limitations
				described in §
									12-711(b)-6
				of Part II, may be properly applied to S corporation items of income or loss,
				each of such S corporation items shall have the same character for a
				shareholder for Connecticut income tax purposes as for federal income tax
				purposes. Where an item is not characterized for federal income tax purposes,
				the item shall have the same character for a shareholder as if realized
				directly from the source from which realized by the S corporation or incurred
				in the same manner as incurred by the S corporation. If an S corporation item
				is not required to be taken into account for federal income tax purposes (such
				as interest on bonds of another state), the character of the item for a
				shareholder for Connecticut income tax purposes is the same as if the
				shareholder, as an individual, had realized or incurred the item
				directly.
(b) While this section
				pertains to Section
				12-715(b)
				of the general statutes, for purposes of supplementary interpretation, as the
				phrase is used in Section
				12-2
				of the general statutes, the adoption of this section is authorized by Section
				12-740(a)
				of the general statutes.
Connecticut Administrative Code › Title 12 - Taxation › 740(a) - INCOME TAX › Part VII - Partnerships and S corporations › Section 12-726(a)-1 - Informational return required from partnership

Current through July 10, 2024
(a) A
				partnership as such is not subject to the income tax, but a partnership which
				has any income, gain, loss or deduction derived from or connected with sources
				within Connecticut (as determined under Part II), regardless of the amount, is
				required by Section
				12-726(a)
				of the Connecticut General Statutes to file Form CT-1065/CT-1120SI. The return
				shall be filed on or before the fifteenth day of the fourth month following the
				close of the taxable year of the partnership, irrespective of the taxable years
				of its partners.
(b) The return
				shall set forth, for each taxable year of the partnership-
(1) all items of income, gain, loss and
				deduction;
(2) the complete name
				and address, taxable year and social security or federal employer
				identification number of each partner;
(3) the amount of each partner's distributive
				share of income, gain, loss and deduction (A) derived from or connected with
				sources within Connecticut and (B) derived from or connected with sources
				without Connecticut;
(4) the amount
				of each partner's distributive share of the modifications described in
				§§
										12-715(a)-1
				and
				12-715(b)-1
				of this Part that relate to partnership items of income, gain, loss or
				deduction (A) derived from or connected with sources within Connecticut and (B)
				derived from or connected with sources without Connecticut; and
(5) such other information or schedules as
				the Department may prescribe on its forms and instructions.
Connecticut Administrative Code › Title 12 - Taxation › 740(a) - INCOME TAX › Part VII - Partnerships and S corporations › Section 12-726(b)-1 - Informational return required from S corporation

Current through July 10, 2024
(a) An
				S corporation as such is not subject to the income tax, but an S corporation
				that has any income, gain, loss or deduction derived from or connected with
				sources within Connecticut is required by Section
				12-726(b)
				of the Connecticut General Statutes to file Form CT-1065/CT-1120SI. The return
				shall be filed on or before the fifteenth day of the fourth month following the
				close of the taxable year of the S corporation, irrespective of the taxable
				years of its shareholders.
(b) The
				return shall set forth, for each taxable year of the S corporation-
(1) all items of income, gain, loss and
				deduction, and the complete name and address, taxable year and social security
				or federal employer identification number of each shareholder;
(2) the amount of each shareholder's pro rata
				share of the S corporation's (A) nonseparately computed income or loss (i)
				derived from or connected with sources within Connecticut and (ii) derived from
				or connected with sources without Connecticut, and (B) separately computed
				income or loss (i) derived from or connected with sources within Connecticut
				and (ii) derived from or connected with sources without Connecticut.
(3) the amount of each shareholder's pro rata
				share of (A) the modifications described in §§
										12-715(a)-2
				and
				12-715(b)-2
				of this Part that relate to S corporation items of income or gain derived from
				or connected with sources within Connecticut and (B) the modifications
				described in §§
										12-715(a)-2
				and
				12-715(b)-2
				that relate to S corporation items of income or gain derived from or connected
				with sources without Connecticut.
(4) such other information or schedules as
				the Department may prescribe on its forms and instructions.
Connecticut Administrative Code › Title 12 - Taxation › 740(a) - INCOME TAX › Part VIII - Estimated tax › Section 12-701(a)(11)-1 - Estimated tax

Current through July 10, 2024
(a) For Connecticut
				income tax purposes, "estimated tax" means the amount which an individual
				estimates to be his or her income tax for the taxable year less the amount
				which such individual estimates to be the sum of any credits allowable for tax
				withheld pursuant to Part IX. In estimating his or her income tax for the
				taxable year, a resident individual or part-year resident individual shall take
				into account the credit allowable for income tax paid to a qualifying
				jurisdiction pursuant to Part VI. A resident trust or estate, or a part-year
				resident trust, is entitled to estimate its income tax for the taxable year in
				a similar fashion and is subject to the same exceptions and limitations set
				forth in Part VI.
(b) While this
				section pertains to Section
				12-701a(11)
				of the general statutes, for purposes of supplementary interpretation, as the
				phrase is used in Section
				12-2
				of the general statutes, the adoption of this section is authorized by Section
				12-740(a)
				of the general statutes.
Connecticut Administrative Code › Title 12 - Taxation › 740(a) - INCOME TAX › Part VIII - Estimated tax › Section 12-701(a)(12)-1 - Required annual payment

Current through July 10, 2024
(a)
General
.
(1) "Required annual
				payment" means the lesser of (A) 90% of the tax shown on the return for the
				taxable year, or, if no return is filed, 90% of the tax for such year, or (B)
				if the preceding taxable year was a taxable year of twelve months and (i) the
				taxpayer filed a return for the preceding taxable year, 100% of the tax shown
				on the return of the taxpayer for such preceding taxable year or (ii) zero, if
				no return was filed, the taxpayer did not have any Connecticut income tax
				liability for such year and throughout such year the taxpayer was (a) a
				resident individual, or (b) a nonresident or part-year resident individual with
				Connecticut-sourced income.
(2)
				"The tax" means the income tax, as defined in section 12-701(b)-1(a)(10) of
				Part XIV, taking into account the credit allowable for income tax or
				alternative minimum tax paid to a qualifying jurisdiction.
(3) "The return" means the originally filed
				return for the taxable year, provided, if an amended return is filed on or
				before the due date (determined with regard to any extension of time for
				filing) of the return for the taxable year, "the return" is such amended return
				(see Rev. Rul. 83-36, 1983-1 C.B. 358); if an amended return is filed as a
				consequence of a retroactive change in the provisions of law applicable to the
				taxable year, "the return" means the amended return, to the extent that the
				amendment is due to such retroactive change of law; and if separate returns are
				originally filed by persons married to each other, although they were eligible
				to file a return jointly, for the taxable year, and, within the time prescribed
				by Conn. Gen. Stat. §
										12-732 for
				claiming a refund, they file a return jointly for the taxable year, "the
				return" means such joint return (see Rev. Rul. 80-355, 1980-2 C.B.
				374).
(4) In the event that the
				taxpayer makes a mathematical error, as defined in section
				12-731-1, on
				the return, including but not limited to the making of an incorrect tax
				computation or the failure to enter a tax computation, "the tax shown on the
				return" means the tax, as correctly computed.
(5) The same principles apply in determining
				whether a resident individual, a nonresident individual or a part-year resident
				individual has made the required annual payment. The principles that apply in
				determining whether a resident individual, a nonresident individual, or a
				part-year resident individual has made the required annual payment also apply
				in determining whether a resident trust or estate, a nonresident trust or
				estate, or a part-year resident trust, respectively, has made the required
				annual payment.
Connecticut Administrative Code › Title 12 - Taxation › 740(a) - INCOME TAX › Part VIII - Estimated tax › Section 12-722-1 - Estimated tax payments by husband and wife. Change of status. Death of a spouse

Current through July 10, 2024
(a)
General
. A husband and wife may make joint estimated tax payments,
				as if a joint Connecticut income tax return shall be filed by them for the
				taxable year, provided that they are eligible to file a joint Connecticut
				income tax return for the taxable year. If joint estimated tax payments are
				made, the liability for estimated tax determined under this Part is joint and
				several.
(b)
Change of
				status
.
(1) The fact that joint
				estimated tax payments are made by a husband and wife shall not preclude them
				from filing separate Connecticut income tax returns. Where joint estimated tax
				payments are made for a taxable year but a joint Connecticut income tax return
				is not filed for the taxable year, the joint payments for such year may be
				divided between the husband and wife in such manner as they may agree. If the
				separate Connecticut income tax returns of the husband and of the wife claim,
				in the aggregate, more than 100% of the joint estimated tax payments, the
				Department will treat the husband and wife as not having agreed on the division
				of the joint estimated tax payments.
(2) In the absence of such an agreement, the
				portion of the joint estimated tax payments allocated to a spouse shall be that
				portion of the aggregate of all such joint payments made, as the amount of tax
				shown on the separate Connecticut income tax return of each taxpayer bears to
				the sum of the taxes shown on the separate Connecticut income tax returns of
				the taxpayer and such taxpayer's spouse. The allocation shall be final and
				shall not be affected by any documentation submitted by either spouse
				purporting to establish that he or she is entitled to be credited with making
				all or a portion of such joint payments.
Connecticut Administrative Code › Title 12 - Taxation › 740(a) - INCOME TAX › Part VIII - Estimated tax › Section 12-722(a)-1 - Addition to tax not subject to interest or penalty

Current through July 10, 2024
(a) If an individual is subject to an
				addition to tax under section
				12-722(a)
				of the Connecticut General Statutes, the addition to tax shall not be subject
				to interest or penalty, whether or not the individual pays the addition to tax
				on or before the period of underpayment, as described in section
				12-722(b)
				of the General Statutes, expires.
(b) While this section pertains to Section
				12-722(a)
				of the general statutes, for purposes of supplementary interpretation, as the
				phrase is used in Section
				12-2
				of the general statutes, the adoption of this section is authorized by Section
				12-740(a)
				of the general statutes.
Connecticut Administrative Code › Title 12 - Taxation › 740(a) - INCOME TAX › Part VIII - Estimated tax › Section 12-722(n)-1 - Installments due after date of death

Current through July 10, 2024
(a) In the case of
				a decedent, payments of estimated income tax installments due after the date of
				death of the decedent and in respect of income that is earned before the death
				of the decedent and that is taxable to the decedent (and not to the decedent's
				estate) are not required, and no addition to tax shall be imposed on any such
				installments. If the decedent had been making joint estimated tax payments with
				his or her spouse for the taxable year, no further estimated tax payments are
				required from the decedent's estate. The surviving spouse may continue to make
				joint estimated tax payments for the remainder of the taxable year or may make
				his or her own separate estimated tax payments. If, however, the surviving
				spouse continues to make joint estimated tax payments for the remainder of the
				taxable year, the surviving spouse shall be subject to the imposition of an
				addition to tax in accordance with the provisions of Section
				12-722
				of Connecticut General Statutes.
(b) While this section pertains to Section
				12-722
				of the Connecticut General Statutes, for purposes of supplementary
				interpretation, as the phrase is used in Section
				12-2
				of the Connecticut General Statutes, the adoption of this section is authorized
				by Section
				12-740(a)
				of the Connecticut General Statutes.
Connecticut Administrative Code › Title 12 - Taxation › 740(a) - INCOME TAX › Part IX - Withholding › Section 12-705(a)-1 - Requirement of withholding

Current through July 10, 2024
(a) An employer is
				required to register with the Department and deduct and withhold Connecticut
				income tax if such employer maintains an office or transacts business within
				this state and pays wages subject to Connecticut income tax.
(b) The income tax is to be withheld on the
				basis of the same payroll period which is used for federal withholding tax
				purposes. The employer shall deduct and withhold the tax from the wages of its
				employees as and when paid, either actually or constructively. Wages are
				constructively paid when they are credited to the account of or set apart for
				an employee so that they may be drawn upon by such employee at any time,
				although not then actually reduced to possession. To constitute payment in such
				a case, the wages shall be credited to or set apart for the employee without
				any substantial limitation or restriction as to the time or manner of payment
				or condition upon which payment is to be made, and shall be made available to
				the employee so that they may be drawn upon at any time, and their payment
				brought within the employee's own control and disposition.
(c) Except as otherwise provided in this
				Part, payments that are, or are treated as if they are, wages on which
				Connecticut income tax shall be deducted and withheld are those payments that
				are, or are treated as if they are, wages on which federal income tax shall be
				deducted and withheld.
(d) See
				§
									12-701(b)-1 of Part
				XIV for the meaning of terms used in this Part.
Connecticut Administrative Code › Title 12 - Taxation › 740(a) - INCOME TAX › Part IX - Withholding › Section 12-705(a)-3 - Certain supplemental compensation

Current through July 10, 2024
(a) Supplemental
				compensation. "Supplemental compensation" includes bonuses, commissions and
				overtime pay, paid at the same or a different time as ordinary wages.
(1) When supplemental compensation is paid at
				the same time as regular wages, the amount of the tax required to be withheld
				is determined as if the total of the supplemental and regular wages were a
				single payment for the regular payroll period. For example, if an employee
				worked overtime hours during a pay period, the employer shall combine the
				employee's regular pay and overtime pay in computing the tax to be
				withheld.
(2) When supplemental
				compensation is paid at a different time than regular wages, the method of
				withholding to be used depends on whether the employer withheld income tax from
				the employee's regular wages:
(A) If the
				employer did not withhold from the regular wages, the regular and supplemental
				compensation shall be added together and the tax computed on the total
				amount.
(B) If the employer did
				withhold from the regular wages, the employer shall compute the tax on the
				combined regular and supplemental compensation, with the tax to be withheld
				from the supplemental compensation to be the difference between the tax so
				computed less the tax withheld from regular wages.
Connecticut Administrative Code › Title 12 - Taxation › 740(a) - INCOME TAX › Part IX - Withholding › Section 12-705(a)-4 - Withholding or exemption certificate

Current through July 10, 2024
(a)
(1) On or before the commencement of
				employment, an employee shall furnish a completed and signed Form CT-W4
				(Employee Withholding or Exemption Certificate) to the employer identifying, by
				filing status, the personal exemption amount to which such employee is
				entitled. The employee may not claim a personal exemption amount that is
				greater than the amount to which such employee is entitled under the existing
				facts and circumstances, nor may the employee use in determining the proper
				Connecticut income tax to be withheld the tax shown on the Connecticut income
				tax return of such employee for the preceding taxable year or 90% of the tax
				expected to be shown on the Connecticut income tax return for the taxable
				year.
(2) The employer is required
				to obtain a Form CT-W4 from the employee. If the employee fails to furnish such
				form, the employee shall be subject to the highest effective rate of
				withholding.
Connecticut Administrative Code › Title 12 - Taxation › 740(a) - INCOME TAX › Part IX - Withholding › Section 12-705(a)-5 - Addition to or reduction from withholding

Current through July 10, 2024
(a) In
				addition to the tax required to be deducted and withheld under this Part, the
				employee may request that the employer withhold an additional amount from the
				employee's wages. An employee with other income in addition to compensation
				subject to withholding may have additional amounts deducted and withheld in
				order to avoid the requirement of paying estimated taxes. The additional amount
				deducted and withheld shall be considered as tax required to be deducted and
				withheld under the Income Tax Act.
(b) An employee may also request that the
				employer withhold an amount less than that which would otherwise be withheld
				from such employee in his or her exemption category. Such request may be made
				when the employee expects to sustain losses which would reduce federal adjusted
				gross income and thereby reduce such employee's Connecticut adjusted gross
				income or expects to make modifications under §
									12-701(a)(20)-3
				in computing Connecticut adjusted gross income. The employee may not use in
				determining the proper Connecticut income tax to be withheld the tax shown on
				the Connecticut income tax return of such employee for the preceding taxable
				year or 90% of the tax expected to be shown on the Connecticut income tax
				return for the taxable year.
Connecticut Administrative Code › Title 12 - Taxation › 740(a) - INCOME TAX › Part IX - Withholding › Section 12-705(a)-7 - Wages paid through an agent, fiduciary or other person on behalf of two or more employers

Current through July 10, 2024
If payment of wages is made by an employer through an agent,
				  fiduciary, or other person who also pays, or has the control, receipt, custody,
				  or disposal of, the wages payable by another employer to the same employee, the
				  amount of the tax required to be withheld on each wage payment to be made
				  through such agent, fiduciary, or other person shall, whether the wages are
				  paid separately on behalf of each employer or in a lump sum on behalf of all
				  such employers, be determined upon the aggregate amount of such wage payment or
				  payments in the same manner as if the aggregate amount had been paid by one
				  employer. In such a case, each employer is liable for the return and payment of
				  a pro rata portion of the tax so determined, such portion to be determined in
				  the ratio which the amount contributed by the particular employer bears to the
				  aggregate of such wages.
Connecticut Administrative Code › Title 12 - Taxation › 740(a) - INCOME TAX › Part IX - Withholding › Section 12-705(a)-8 - Furnishing amended withholding or exemption certificate

Current through July 10, 2024
(a) If, during the taxable year, an employee
				who has in effect a Form CT-W4 has a change occur in his or her circumstances
				that shall result in underwithholding of Connecticut income tax, the employee
				shall within 10 days of the change furnish to his or her employer a new Form
				CT-W4 reflecting such change.
(b)
(1) In completing a Form CT-W4, an employee
				is required to check a filing status.
(A)
				Filing status "A" is to be claimed if an employee is married but filing a
				federal income tax return separately from his or her spouse; or is married and
				filing a federal income tax return jointly with his or her spouse who is
				employed and their combined Connecticut adjusted gross income is $100,500 or
				less.
(B) Filing status "B" is to
				be claimed if an employee is eligible to file, and filing, a federal income tax
				return as a head of household.
(C)
				Filing status "C" is to be claimed if an employee is married and filing a
				federal income tax return jointly with his or her spouse who is not
				employed.
(D) Filing status "D" is
				to be claimed if an employee is married and filing a federal income tax return
				jointly with his or her spouse who is employed, and their combined Connecticut
				adjusted gross income is more than $100,500; or if the employee has significant
				nonwage income and wishes to avoid having insufficient tax withheld; or if the
				employee is a nonresident individual and has substantial other
				income.
(E) Filing status "E" is to
				be claimed if an employee expects a refund of all Connecticut income withheld
				during the taxable year because he or she expects to have no Connecticut income
				tax liability for such year.
(F)
				Filing status "F" is to be claimed if an employee is unmarried but is not
				eligible to file a federal income tax return as a head of household.
Connecticut Administrative Code › Title 12 - Taxation › 740(a) - INCOME TAX › Part IX - Withholding › Section 12-705(b)-1 - Professional athletes and entertainers

Current through July 10, 2024
(a)
(1) Any person which maintains an office or
				transacts business within this state and during a calendar year pays
				compensation, in cash or otherwise, for personal services as an entertainer or
				professional athlete, in connection with a performance or athletic event, to an
				entertainer or professional athlete who is not considered an employee for
				federal withholding tax purposes and who is-
(A) a resident individual, shall withhold
				Connecticut income tax from such compensation, whether or not the performance
				or athletic event is held within Connecticut.
(B) a nonresident individual, shall withhold
				Connecticut income tax from the portion of such compensation that is derived
				from or connected with sources within this state.
Connecticut Administrative Code › Title 12 - Taxation › 740(a) - INCOME TAX › Part IX - Withholding › Section 12-705(b)-2 - Gambling winnings

Current through July 10, 2024
(a)
Winnings
				subject to withholding
.
(1) The
				following winnings are subject to Connecticut income tax withholding:
(A) any payment made by the Connecticut
				Lottery Corporation of winnings from a wager placed in a lottery conducted by
				the Connecticut Lottery Corporation to an individual who was a resident on the
				date that the numbers of such winning Connecticut lottery ticket were drawn (or
				if no drawing of numbers was conducted, on the date that such winning lottery
				ticket was purchased), if federal income tax withholding is required under
				section 3402(q) of the Internal Revenue Code;
(B) any payment of winnings from a wager
				placed in a pari-mutuel pool with respect to horse or dog races or jai-alai
				games to an individual who was a resident on the date of the race, if federal
				income tax withholding is required under section 3402(q) of the Internal
				Revenue Code; and
(C) any payment
				of gambling winnings by any other payer who maintains an office or transacts
				business within Connecticut to an individual who was a resident on the date the
				wager was made or to someone receiving them on behalf of a Connecticut
				resident, if such winnings are subject to federal income tax withholding under
				section 3402(q) of the Internal Revenue Code.
Connecticut Administrative Code › Title 12 - Taxation › 740(a) - INCOME TAX › Part IX - Withholding › Section 12-705(b)-3 - Withholding for resident individuals who are recipients of pensions or annuities

Current through July 10, 2024
(a)
General
. Any payer of pensions or annuities maintaining an office
				or transacting business within this state shall withhold Connecticut income tax
				from pension or annuity payments that are distributed to a resident individual
				recipient if requested to do so by such recipient. This requirement applies to
				all payers, whether public or private, and to all payments, including lump sum
				distributions, on account of which a federal Form 1099-R is required to be
				furnished to the payee by the payer, whether or not such payments are made from
				a Connecticut location.
(b)
To qualify for withholding
. To qualify for withholding of
				Connecticut income tax, the pension or annuity payment shall be income to the
				recipient that would be includible in such recipient's Connecticut adjusted
				gross income.
(c)
Amount to
				be deducted and withheld
. The request to deduct and withhold Connecticut
				income tax shall be made in a specific whole dollar amount. This amount shall
				be at least $10 per payment.
(d)
Manner of making request
. The payer shall provide all resident
				individuals who are recipients of pension or annuity payments with a Form
				CT-W4P (Withholding Certificate for Pension or Annuity Payments) or a facsimile
				thereof. A request to deduct and withhold Connecticut income tax on pension or
				annuity payments should be made by the payee by completing the Form provided by
				the payer.
(e)
When request
				becomes effective
. Upon receipt of a request by a payee to deduct and
				withhold Connecticut income tax from pension or annuity payments, the payer
				shall deduct and withhold the amount specified in such request commencing no
				later than the first payment made on or after the date which occurs:
(1) in a case in which no previous request is
				in effect, three calendar months after the date on which the request is
				furnished to such payer; or
(2) in
				a case in which a previous request is in effect, the first status determination
				date (January 1, May 1, July 1 and October 1 of each year) which occurs at
				least 30 days after the date on which such request is so furnished.
Connecticut Administrative Code › Title 12 - Taxation › 740(a) - INCOME TAX › Part IX - Withholding › Section 12-705(b)-4 - Distributions

Current through July 10, 2024
(a) Any payer that maintains an office or
				transacts business within this state and that makes a distribution or payment
				that is, or is treated as if it is, wages on which federal income tax shall be
				deducted and withheld from a plan to a-
(1)
				resident individual, shall file a Form CT-W3, with a duplicate of the "state
				copy" of the federal Form W-2, with the Department on or before the due date
				for filing the federal Form W-2.
(2) nonresident individual from whose wages
				Connecticut income tax has previously been withheld by the payer, shall file a
				Form CT-W3, with a duplicate of the "state copy" of the federal Form W-2, with
				the Department on or before the due date for filing the federal Form
				W-3.
Connecticut Administrative Code › Title 12 - Taxation › 740(a) - INCOME TAX › Part IX - Withholding › Section 12-705(b)-5 - Liability of third parties paying wages

Current through July 10, 2024
(a)
(1) A lender, surety or other person:
(A) who is neither an employer nor a
				fiduciary, agent or other person authorized to perform acts required of
				employers with respect to an employee or group of employees; and
(B) who pays wages directly to such employee
				or group of employees, employed by one or more employers, or to an agent on
				behalf of such employee or employees, is liable for payment of an amount equal
				to the sum of the Connecticut income taxes required to be deducted and withheld
				from those wages by the employer and interest from the due date of the
				Connecticut employer's return relating to such Connecticut income taxes for the
				period in which the wages are paid.
Example: Pursuant to a wage claim, a surety company paid an
				  employee of a construction company his net wages. This was done in accordance
				  with the surety company's payment bond covering a private construction job on
				  which such employee was employed by the construction company. If the
				  construction company fails to make timely payment or deposit of the Connecticut
				  income tax required to be deducted and withheld from such employee's wages, the
				  surety company becomes personally liable for the amount equal to the unpaid
				  Connecticut income taxes, plus interest upon such amount from the due date of
				  the construction company's Connecticut withholding tax payment.
Connecticut Administrative Code › Title 12 - Taxation › 740(a) - INCOME TAX › Part IX - Withholding › Section 12-705(c)-1 - Voluntary withholding other than by employers

Current through July 10, 2024
Any person (other than an employer) who is not otherwise
				  required to register to withhold Connecticut income tax may, pursuant to an
				  agreement between such person and a payee who is a Connecticut resident
				  individual (or a nonresident individual, where payment or payments shall be
				  part of such individual's Connecticut adjusted gross income derived from or
				  connected with sources within Connecticut), register solely for the purpose of
				  withholding Connecticut income tax from payment or payments made to such payee.
				  Where a person so registers, such person shall be treated as an employer
				  required to register under this Part with respect to such payee while such
				  agreement remains in effect.
Connecticut Administrative Code › Title 12 - Taxation › 740(a) - INCOME TAX › Part IX - Withholding › Section 12-705(c)-2 - Voluntary withholding by employers

Current through July 10, 2024
(a) Any employer
				that is not otherwise required to register to withhold Connecticut income tax
				may, pursuant to an agreement between such employer and an employee who is a
				Connecticut resident individual (or a nonresident individual, where the wages
				shall be part of such individual's Connecticut adjusted gross income derived
				from or connected with sources within Connecticut), register solely for the
				purpose of withholding Connecticut income tax from wages paid to such employee.
				Where an employer so registers, such employer shall be treated as an employer
				required to register under this Part with respect to such employee while such
				agreement remains in effect.
(b)
				Any household employer that is not otherwise required to register to withhold
				Connecticut income tax and that, pursuant to an agreement between such employer
				and a household employee, registers solely for the purpose of withholding
				Connecticut income tax from wages paid to such household employee may, upon the
				employer's written request, be permitted by the department to file a Form
				CT-941, Connecticut quarterly reconciliation of withholding, for only the last
				calendar quarter of the calendar year for which such employer has agreed to
				deduct and withhold Connecticut income tax. Such form shall report the
				Connecticut income tax that such employer agreed to deduct and withheld for the
				entire calendar year. A household employer may obtain permission to file one
				Form CT-941 for the last calendar quarter of the calendar year by sending a
				written request on or before the last day of the first calendar quarter of the
				calendar year to which the request pertains to the registration section of the
				operations division of the department. The department shall provide written
				notice of its decision to grant or deny permission. If permission is granted,
				permission need not be sought, and no new request need be made, for succeeding
				calendar years. If permission is not granted, the employer shall be required to
				file a Form CT-941 for each calendar quarter and shall be subject to the
				provisions of §
									12-735(a)-1
				of Part XII if it fails to file such a return for each calendar
				quarter.
Full section history for 2002 amendment reads as follows:
					 "Amended February 28, 2002, applicable to taxable years beginning on or after
					 January 1, 2002." Abbreviated note in section history inserted 11/4/2014 as a
					 result of automated publishing restrictions. (November 4,
					 2014)