Connecticut Tax Form CT-1040NR/PY - Connecticut Nonresident and Part-Year Resident Income Tax Return Instructions

What's New

Filing Status Options: For taxable year 2008, the Connecticut filing status options are single, filing jointly for federal and Connecticut, filing jointly for Connecticut only, filing separately for federal and Connecticut, fi ling separately for Connecticut only, head of household, and qualifying widow(er) with dependent child.

The filing status for individuals who are parties to a civil union recognized under Connecticut law or in a marriage under Kerrigan v. Commissioner of Public Health, 289 Conn. 135 (2008) (Kerrigan) is either filing jointly for Connecticut only or filing separately for Connecticut only. See Filing Status Page 15.

The chart below illustrates how the new Connecticut filing status options for the 2008 taxable year relate to the filing status options for the 2007 taxable year.

2007 Filing Status Option 2008 Filing Status Option

Single Single

Head of household Head of household

Qualifying widow(er) with dependent child Qualifying widow(er) with dependent child

Married filing jointly Filing jointly for federal and Connecticut

Married filing separately Filing separately for federal and Connecticut

Civil union filing jointly Filing jointly for Connecticut only

Civil union filing separately Filing separately for Connecticut only

Except as otherwise noted, any reference in these instructions to filing jointly includes filing jointly for federal and Connecticut and filing jointly for Connecticut only. Likewise, filing separately includes filing separately for federal and Connecticut and filing separately for Connecticut only.

Personal Exemption and Credits: The personal exemption for individuals whose filing status is single has increased to $13,000 for the 2008 taxable year. There is a $1,000 reduction in the exemption for every $1,000 of Connecticut adjusted gross income over $26,000. See the Tax Calculation Schedule on Pages 52 and 53.
Homecare Option Program for the Elderly: New legislation expands the allowed subtraction modification to include dividends or capital gains. An individual is allowed, in computing his or her Connecticut adjusted gross income, to subtract from federal adjusted gross income (AGI) interest, dividends, or capital gains earned on contributions to accounts established for a designated beneficiary under the Connecticut Homecare Option Program for the Elderly. This modification is allowed to the extent that the interest, dividends, or capital gains is properly includable in the gross income of the designated beneficiary for federal income tax purposes.

The legislation modifies the definition of designated beneficiary to include any individual who has been designated as a beneficiary in the participation agreement and may include any individual who enters into a participation agreement or is subsequently designated as a spouse or the partner to a civil union of the designated beneficiary.

To make the modification to federal AGI for the Homecare Option Program for the Elderly, a taxpayer must file Form CT-1040, Connecticut Resident Income Tax Return, or Form CT-1040NR/PY, Connecticut Nonresident and Part-Year Resident Income Tax Return.

Military Pension Benefits: For taxable years beginning on or after January 1, 2008, Conn. Gen. Stat. §12-701(a)(20)(B) allows an individual, to the extent properly includable in federal AGI, in computing his or her Connecticut adjusted gross income, to subtract from his or her federal AGI 50% of the income received from the U.S. government as retirement pay for a retired member of the armed forces of the United States or the National Guard (retired member).

This legislation allows a retired member, for Connecticut income tax purposes, who received retirement pay from the U.S. government to exclude 50% of the retirement pay received from the U.S. government when computing adjusted federal tentative minimum tax and adjusted federal alternative minimum taxable income.

Benefits received by a beneficiary under an option or election made by a retired member and which commenced with the member's death are covered by this subtraction modification.

To make the military pension modifi cation to federal AGI for 50% of a qualifying military pension,ataxpayer must file Form CT-1040, Connecticut Resident Income Tax Return, or Form CT-1040NR/PY, Connecticut Nonresident and Part-Year Resident Income Tax Return.

Mailing Labels: The Department of Revenue Services (DRS) no longer provides a preprinted peel-off label. You must enter your name, mailing address, SSN, and the name and SSN for your spouse (if filing a joint return) on the return. Page 4

General Information

Tax Assistance

DRS is ready to help you and offers several resources where you can get answers to your Connecticut tax questions. Visit the DRS website at www.ct.gov/DRS or for personal assistance, refer to the back cover of this booklet for a list of DRS walk-in offices, telephone numbers, and of. ce hours. If you visit, be sure to bring:

Copy 2 of your federal Forms W-2 and any other forms showing Connecticut income tax withholding;
Your Social Security Number (SSN) card, photo identification, and proof of qualifying property tax payments if you are claiming a property tax credit; and
Your completed federal Form 1040EZ, 1040A, or 1040.

Personal telephone assistance is available Monday through Friday, 8:30 a.m. to 4:30 p.m. Automated information may answer your questions anytime. Call CONN-TAX, the DRS information line, at 1-800-382-9463 (Connecticut calls outside the Greater Hartford calling area only) or 860-297-5962 (from anywhere) or visit the DRS website for details.

Forms and Publications

Visit the DRS website at www.ct.gov/DRS to download and print Connecticut tax forms and publications anytime. Forms are also available during regular business hours at any of the DRS walk-in offices and the other sources listed on the back cover of this booklet and at most public libraries, town halls, and post offices during the tax filing season.

Important Reminders

You must use blue or black ink only to complete your return.
Remember to send all four pages of your return. If you do not provide DRS with all the completed pages of your return or do not provide all required information (such as your name, SSN, ITIN, or attachments), the processing of your return will be delayed.
Be sure you have received all your federal W-2 and 1099 forms before filing your Connecticut income tax return. Generally, you receive the forms on or before January 31. If you receive an additional federal W-2 or 1099 form after filing your Connecticut income tax return, you may be required to file Form CT-1040X, Amended Connecticut Income Tax Return for Individuals. See Amended Returns on Page 32.
Do not send W-2, 1099, or Schedule CT K-1 forms with your Connecticut income tax return. To avoid signi.cant delays in processing your return, be sure to complete Columns A, B, and C of Section 3 of your return. DRS will disallow your Connecticut withholding if you fail to complete all columns.
Check the correct filing status on your return.
Sign your return. If you and your spouse are filing jointly, both of you must sign.
Have your paid preparer sign the return and enter the .rm's Federal Employer Identi.cation Number (FEIN) in the space provided.
Except as otherwise noted, any reference in these instructions to a spouse also refers to a party to a civil union recognized under Connecticut law.
Except as otherwise noted, any reference in these instructions to filing jointly includes filing jointly for federal and Connecticut and filing jointly for Connecticut only. Likewise, filing separately includes filing separately for federal and Connecticut and filing separately for Connecticut only.
File the correct form. Most taxpayers qualify to electronically file their Connecticut income tax return or file Form CT-1040EZ, Connecticut Resident EZ Income Tax Return. See May I File My Connecticut Income Tax Return Over the Telephone Using Telefile, May I File My Connecticut Income Tax Return Over the Internet, or May I File Form CT-1040EZ on Page 9.
If you receive federally taxable Social Security benefits, you must file Form CT-1040, Connecticut Resident Income Tax Return.
If you are an executor, administrator, or spouse filing a return for a deceased taxpayer, remember to check the box next to the deceased taxpayer's SSN.
Remember to check the box on the first page of your return if you are filing Form CT-1040CRC, Claim of Right Credit.
Check the box on the first page of your return if you are filing Form CT-8379, Nonobligated Spouse Claim.
DRS no longer provides a preprinted peel-off label. You must enter your name, mailing address, SSN, and the name and SSN for your spouse (if filing a joint return) on the return.
Round all figures to the nearest whole dollar. See Rounding Off to Whole Dollars on Page 15.
Be sure both you and your spouse file your income tax returns at the same time if you filed joint estimated tax payments but elect or are required to file separate income tax returns. No refund will be processed until both Connecticut returns are received.
Use the correct DRS mailing label on the envelope when filing your return. One label is for refunds and all other tax forms without payment. The other label is for all tax forms with payment.

Who Must File Form CT-1040NR/PY

You must file Form CT-1040NR/PY if you were a nonresident or part-year resident of Connecticut in 2008 and any of the following is true for the 2008 taxable year:

You had Connecticut income tax withheld;
You made estimated tax payments to Connecticut or made a payment with Form CT-1040 EXT;
You were a part-year resident who meets the Gross Income Test (see below) or who had a federal alternative minimum tax liability; or
You were a nonresident with Connecticut source income who meets the Gross Income Test (see below) or had a federal alternative minimum tax liability. See Connecticut Source Income of a Nonresident on Page 9.

If none of the above apply, do not file Form CT-1040NR/PY.

Gross Income Test

You must file a Connecticut income tax return if your gross income for the 2008 taxable year exceeds:

$12,000 and you are fi ling separately;
$13,000 and you are fi ling single;
$19,000 and you are filing head of household; or
$24,000 and you are fi ling jointly or qualifying widow(er) with dependent child.

Gross income means all income you received in the form of money, goods, property, services not exempt from federal income tax, and any additions to income required to be reported on Form CT-1040NR/PY, Schedule 1.

Gross income includes, but is not limited to:

Compensation for services, including wages, fees, commissions, taxable fringe benefits, and similar items;
Gross income from a business;
Capital gains;
Interest and dividends;
Gross rental income;
Gambling winnings;
Alimony;
Taxable pensions and annuities;
Prizes and awards;
Your share of income from partnerships, S corporations, estates, or trusts;
IRA distributions;
Unemployment compensation;
Federally taxable Social Security benefits; and
Federally taxable disability benefits.

The following examples explain the gross income test:

Example 1: A nonresident whose only income is from a sole proprietorship located in Connecticut files a federal Form 1040 and reports the following on Schedule C:

Gross Income ....$ 100,000
Expenses............... (92,000)
Net Income ............$ 8,000

Because the gross income of $100,000 exceeds the minimum requirement and the income is from a Connecticut source, this nonresident must file Form CT-1040NR/PY.

Example 2: A Connecticut part-year resident who fi les as single on Form CT-1040NR/PY received $8,000 in federally nontaxable Social Security benefits and $11,000 in interest income. Since nontaxable Social Security benefits are not included in gross income, the Connecticut part-year resident is not required to file a return unless Connecticut tax was withheld or estimated tax payments were made.

Example 3: A nonresident whose filing status is single for federal income tax purposes received $12,750 in wage income from Connecticut employment and $1,000 in federally-exempt interest from California state bonds. The taxpayer's federal gross income with additions from Form CT-1040NR/PY, Schedule 1 (interest on state or local obligations other than Connecticut), is $13,750. Therefore, the nonresident must file Form CT-1040NR/PY.

Relief From Joint Liability

In general, if you and your spouse file a joint income tax return, you are both responsible for paying the full amount of tax, interest, and penalties due on your joint return. However, in very limited, specific cases, relief may be granted if you believe all or any part of the amount due should be paid only by your spouse. You may request consideration by filing Form CT-8857, Request for Innocent Spouse Relief (And Separation of Liability and Equitable Relief). See Special Notice 99(15), Innocent Spouse Relief, Separation of Liability, and Equitable Relief.

Title 19 Recipients

Title 19 recipients must file a Connecticut income tax return if the requirements for Who Must File Form CT-1040NR/PY are met.

However, if you do not have funds to pay your Connecticut income tax, complete Form CT-19IT, Title 19 Status Release, and attach it to the front of your Connecticut income tax return if the following two conditions apply:

You were a Title 19 recipient during 2008; and
Medicaid assisted in the payment of your long-term care in a nursing or convalescent home during 2008.

Completing this form authorizes DRS to verify your Title 19 status for 2008 with the Department of Social Services.

Deceased Taxpayers

An executor, administrator, or surviving spouse must file a Connecticut income tax return, for that portion of the year before the taxpayer's death, for a taxpayer who died during the year if the requirements for Who Must File Form CT-1040NR/PY are met. The executor, administrator, or surviving spouse must check the box next to the deceased taxpayer's SSN on the front page of the return. The person filing the return must sign for the deceased taxpayer on the signature line and indicate the date of death.

A surviving spouse may file a joint return if the surviving spouse filed a joint federal income tax return. A surviving civil union partner or spouse in a marriage recognized under Kerrigan may file a joint return as a surviving spouse as if federal income tax law permitted a civil union partner or spouse in a marriage recognized under Kerrigan to file as a surviving spouse. Write "filing as surviving spouse" in the deceased spouse's signature block on the return. If both spouses died in 2008, their legal representative must fi le a final return. The Connecticut and federal filing status must be the same unless the surviving spouse is a civil union partner or spouse in a marriage recognized under Kerrigan.

Claiming a Refund for a Deceased Taxpayer

If you are a surviving spouse filing jointly with your deceased spouse, you may claim the refund on the jointly-fi led return. If you are a court-appointed representative, file the return and attach a copy of the certificate that shows your appointment. All other filers requesting the deceased taxpayer's refund must file the return and attach federal Form 1310, Statement of Person Claiming Refund Due a Deceased Taxpayer.

Income received by the estate of the decedent for the portion of the year after the decedent's death, and for succeeding taxable years until the estate is closed, must be reported each year on Form CT-1041, Connecticut Income Tax Return for Trusts and Estates.

Special Information for Nonresident Aliens

A nonresident alien must file a Connecticut income tax return if he or she meets the requirements of Who Must File a Connecticut Resident Return. In determining whether the gross income test is met, the nonresident alien must take into account any income not subject to federal income tax under an income tax treaty between the United States and the country of which the nonresident alien is a citizen or resident. Income tax treaty provisions are disregarded for Connecticut income tax purposes. Any treaty income reported on federal Form 1040NR or Form 1040NR-EZ and not subject to federal income tax must be added to the nonresident alien's federal adjusted gross income. See Form CT-1040, Schedule 1, Line 38, or Form CT-1040NR/PY, Schedule 1, Line 40.

If the nonresident alien does not have and is not eligible for a Social Security Number (SSN), he or she must obtain an Individual Taxpayer Identification Number (ITIN) from the IRS and enter it in the space provided for an SSN.

DRS no longer processes income tax returns or Form CT-1040 EXT with "Applied For" or "NRA" entered in the SSN field. You must have applied for and been issued your ITIN before you file your income tax return. However, if you have not received your ITIN by April 15, file your return without the ITIN, pay the tax due, and attach a copy of the federal Form W-7. 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. If you fail to submit the information requested, the processing of your return will be delayed.

A married nonresident alien may not file a joint Connecticut income tax return unless the nonresident alien is married to a citizen or resident of the United States and they have made an election to file a joint federal income tax return and they do, in fact, file a joint federal income tax return. Any married individual filing federal Form 1040NR or federal Form 1040NR-EZ is not eligible to file a joint federal income tax return or a joint Connecticut income tax return and must file a Connecticut income tax return as a married individual filing separately except as noted below.

A civil union partner or a spouse in a marriage recognized under Kerrigan who is a nonresident alien may file a joint Connecticut income tax return as long as his or her civil union partner or spouse is a citizen or resident of the United States. A civil union partner or spouse filing federal Form 1040NR or federal Form 1040NR-EZ is not eligible to file a joint Connecticut income tax return and must file a Connecticut income tax return as filing separately for Connecticut only.

Resident, Part-Year Resident, or Nonresident

The following terms are used in this section:

Domicile (permanent legal residence) is the place you intend to have as your permanent home. It is the place you intend to return to whenever you are away. You can have only one domicile although you may have more than one place to live. Your domicile does not change until you move to a new location and definitely intend to make your permanent home there. If you move to a new location but intend to stay there only for a limited time (no matter how long), your domicile does not change. This also applies if you are working in a foreign country.

Permanent place of abode is a residence (a building or structure where a person can live) that you permanently maintain, whether or not you own it, and generally includes a residence owned by or leased to your spouse. A place of abode is not permanent if it is maintained only during a temporary stay for the accomplishment of a particular purpose.

You are a resident for the 2008 taxable year if:

Connecticut was your domicile (permanent legal residence) for the entire 2008 taxable year; or
You maintained a permanent place of abode in Connecticut during the entire 2008 taxable year and spent a total of more than 183 days in Connecticut during the 2008 taxable year.

Nonresident aliens who meet either of these conditions are considered Connecticut residents even if federal Form 1040NR-EZ or federal Form 1040NR is filed for federal income tax purposes. See also Spouses With Different Residency Status on Page 15 and Special Information for Nonresident Aliens on this page.

If you are a resident, you must file Form CT-1040EZ or Form CT-1040 if any of the following is true for the taxable year:

You had Connecticut income taxes withheld;
You made estimated tax payments to Connecticut;
You meet the gross income test; or
You had a federal alternative minimum tax liability.

You are a part-year resident for the 2008 taxable year if you changed your permanent legal residence by moving into or out of Connecticut during the 2008 taxable year. Part-year residents may not elect to be treated as resident individuals.

If you are a part-year resident and you meet the requirements of Who Must File Form CT-1040NR/PY for the 2008 taxable year, you must file Form CT-1040NR/PY.

You are a nonresident for the 2008 taxable year if you are neither a resident nor a part-year resident for the 2008 taxable year.

If you are a nonresident and you meet the requirements of Who Must File Form CT-1040NR/PY for the 2008 taxable year, you must file Form CT-1040NR/PY.

Although you and your spouse file jointly for federal purposes, you may be required to file separate Connecticut returns. See Spouses With Different Residency Status on Page 15.

If you meet all of the conditions in Group A or Group B, you may be treated as a nonresident for 2008 even if your domicile was Connecticut.

Group A

You did not maintain a permanent place of abode in Connecticut for the entire 2008 taxable year;
You maintained a permanent place of abode outside of Connecticut for the entire 2008 taxable year; and
You spent not more than 30 days in the aggregate in Connecticut during the 2008 taxable year.

Group B

You were in a foreign country for at least 450 days during any period of 548 consecutive days;
During this period of 548 consecutive days, you did not spend more than 90 days in Connecticut and you did not maintain a permanent place of abode in Connecticut at which your spouse (unless legally separated) or minor children spent more than 90 days; and
During the nonresident portion of the taxable year in which the 548-day period begins, and during the nonresident portion of the taxable year in which the 548-day period ends, you were present in Connecticut for no more than the number of days that bears the same ratio to 90 as the number of days in such portion of the taxable year bears to 548. See the calculation below.

Number of days in the nonresident portion / 548 x 90 = Maximum days allowed inConnecticut

See Special Notice 2000(17), 2000 Legislation Affecting the Connecticut Income Tax.

Military Personnel Filing Requirements

Military personnel who claim Connecticut as a residence but are stationed elsewhere are subject to Connecticut income tax. If you enlisted in the service as a Connecticut resident and have not established a new domicile (permanent legal residence) elsewhere, you are required to file a resident income tax return unless you meet all of the conditions in Group A or Group B for being treated as a nonresident. See Resident, Part-Year Resident, or Nonresident on Page 7. The rate at which your other income is taxed for Connecticut income tax purposes has been affected by the enactment by Congress of the Service Members Civil Relief Act. See instructions for Form CT-1040NR/PY, Line 51, on Page 23.

If your permanent home (domicile) was outside Connecticut when you entered the military, you do not become a Connecticut resident because you are stationed and live in Connecticut. As a nonresident, your military pay is not subject to Connecticut income tax. However, income you receive from Connecticut sources while you are a nonresident (including your spouse's nonmilitary income) may be subject to Connecticut income tax.

Example: Jennifer is a resident of Florida. She enlisted in the Navy in Florida and was stationed in Groton, Connecticut. She earned $38,000 in military pay.

If Jennifer had no other income . . .

Since Jennifer resided and enlisted in Florida, she is considered a resident of Florida and does not have to file a Connecticut return. Military personnel are residents of the state in which they resided when they enlisted.

If Jennifer had a part-time job in Connecticut . . .

Her Connecticut source income from nonmilitary employment is taxable. Jennifer must file Form CT-1040NR/PY to report this income.

Spouses of military personnel stationed in Connecticut may be considered residents of this state even if their domicile is elsewhere. See Resident, Part-Year Resident, or Nonresident on Page 7. See Informational Publication 2008(22), Connecticut Income Tax Information for Armed Forces Personnel and Veterans.

Combat Zone

The income tax return of any individual in the U.S. Armed Forces serving in a combat zone or injured and hospitalized while serving in a combat zone is due 180 days after returning. There will be no penalty or interest charged. For any individual who dies while on active duty in a combat zone or as a result of injuries received in a combat zone, no income tax or return is due for the year of death or for any prior taxable year ending on or after the first day serving in a combat zone. If any tax was previously paid for those years, the tax will be refunded to the legal representative of the estate or to the surviving spouse upon the filing of a return on behalf of the decedent. In fi ling the return on behalf of the decedent, the legal representative or the surviving spouse should enter zero tax due and attach a statement to the return along with a copy of the death certificate.

Combat zone is an area designated by the President of the United States as a combat zone by executive order. A combat zone also includes an area designated by the federal government as a qualifi ed hazardous duty area.

Members of the U.S. Armed Forces serving in the military operations in the Kosovo, Afghanistan, or Arabian Peninsula regions are eligible for the 180-day extension allowed to individuals serving in a combat zone. Spouses of military personnel and civilians supporting the military in these regions who are away from their permanent duty stations but are not within the designated combat zone are also eligible for the extension. Individuals requesting an extension under combat zone provisions should print both the name of the combat zone and the operation they served with at the top of their Connecticut return. This is the same combat zone or operation name that is provided on their federal income tax return. See Informational Publication 2008(22), Connecticut Income Tax Information for Armed Forces Personnel and Veterans.

How Nonresidents and Part-Year Residents Are Taxed

If you are a nonresident or a part-year resident, your tax liability is computed based upon the greater of your Connecticut adjusted gross income or your total income from Connecticut sources.

You must calculate the tax in the same manner as a resident individual. Then, prorate the tax based upon the percentage of your Connecticut adjusted gross income derived from or connected with Connecticut sources.

Connecticut Adjusted Gross Income

Connecticut adjusted gross income is your federal adjusted gross income as properly reported on federal Form 1040, Line 37; federal Form 1040A, Line 21, or federal Form 1040EZ, Line 4; and any Connecticut modifications required to be reported on Form CT-1040NR/PY, Schedule 1.

Connecticut Source Income of a Nonresident

Connecticut source income of a nonresident is income derived from or connected with sources within Connecticut when the income is:

Attributable to ownership or disposition of real or tangible personal property within Connecticut including but not limited to the income from the rental or sale of the property;

Attributable to compensation for services performed in Connecticut or income from a business, trade, profession, or occupation carried on in Connecticut, including income derived directly or indirectly by athletes, entertainers, or performing artists from closed-circuit and cable television transmissions of irregularly scheduled events if the transmissions are received or exhibited within Connecticut;

Unemployment compensation received from the Connecticut Department of Labor;
From a partnership doing business in Connecticut;
From an S corporation doing business in Connecticut;
From a trust or estate with income derived from or connected with sources within Connecticut;
From a nonqualified deferred compensation plan for services performed wholly or partly within Connecticut; or
From reportable Connecticut Lottery winnings. Winnings from the Connecticut Lottery, including Powerball, are reportable if the winner was issued a federal Form W-2G by the Connecticut Lottery Corporation. In general, the Connecticut Lottery Corporation is required to issue a federal Form W-2G to a winner if the Connecticut Lottery winnings, including Powerball, are $600 or more and at least 300 times the amount of the wager. See Informational Publication 2005(16), Connecticut Income Tax Treatment of State Lottery Winnings Received by Residents and Nonresidents of Connecticut.

In general, Connecticut source income of a nonresident does not include the following income even if it was included in your federal adjusted gross income:

Distributions from pension or retirement plans (such as 401K plans);
Interest, dividends, or gains from the sale or exchange of intangible personal property unless that property is employed in a business, trade, profession, or occupation carried on in Connecticut;
Compensation received for active service in the U.S. military;
Dividends from a corporation doing business in Connecticut;
Compensation you received from an interstate rail carrier, interstate motor carrier, or an interstate motor private carrier;
Gambling winnings (other than reportable Connecticut Lottery winnings shown on federal Form W-2G). See Informational Publication 2008(13), Connecticut Income Tax Treatment of Gambling Winnings Other Than State Lottery Winnings;
Interest you earned from a Connecticut bank (unless earned by a Connecticut business); or
Income you received from business or employment activities in Connecticut that are considered casual, isolated, or inconsequential.

In general, activities that meet one of the following tests are considered casual, isolated, or inconsequential:

$6,000 test -The gross income from the presence of a nonresident in Connecticut does not exceed $6,000 in the taxable year. However, this test does not apply to a nonresident who is a member of one or more pass-through entities with Connecticut source income. In such a case, the nonresident member's activities is not considered casual, isolated, or inconsequential unless the member's Connecticut source income from the pass-through entity or entities is less than $1,000.
An employee's wages for services performed in Connecticut are taxable, regardless of the amount, unless the employee's services meet the Ancillary Activity Test. Also, reportable Connecticut Lottery winnings are taxable regardless of the amount.
Ancillary Activity Test -The nonresident's presence in Connecticut is ancillary to his or her primary business or employment duties performed at a base of operations outside of Connecticut. Ancillary activities are those activities that are secondary to the individual's primary out-of-state duties, and include such things as presence in the state for planning, training, attendance at conferences or symposia, etc.

Connecticut Source Income of a Part-Year Resident

Connecticut source income of a part-year resident is the sum of:

Connecticut adjusted gross income for the part of the year you were a resident;
Income derived from or connected with Connecticut sources for the part of the year you were a nonresident; and
Special accruals.

Items Subject to Special Accrual

A part-year resident must recognize and report items of income, gain, loss, or deduction on the accrual basis regardless of the method of accounting normally used. In general, an item of income is subject to special accrual if the right to receive it is fixed and the amount to be paid is determinable with reasonable accuracy at the time residency status is changed.

Change From Resident to Nonresident

If you moved out of Connecticut during the taxable year, you must include, in calculating your Connecticut adjusted gross income for the period of your Connecticut residency, all items of income, gain, loss, or deduction you would be required to include if you were filing a federal income tax return for the same period on the accrual basis, together with any other accruals not otherwise includible or deductible for federal or Connecticut income tax purposes (such as deferred gains on installment obligations). Include items of special accrual with other items of income, gain, loss, and deduction reported for your residency period. See Schedule CT-1040AW Instructions on Page 33.

Example 1: Laura, a part-year resident who moved out of Connecticut in June 2008, sold property on the installment basis in April 2008. She will receive annual installment payments for five years. She must accrue the entire gain on the sale of the property to the portion of 2008 when she was a resident of Connecticut because her right to receive the gain was fixed and the amount was determinable before the time she changed her residency.

Example 2: Rick, a resident of Connecticut, retired from his Connecticut employment on September 1, 2008, and moved to Florida. His employer notified him on August 15, 2008, that he would receive a $1,000 bonus on September 15, 2008. He must accrue the $1,000 bonus to the portion of 2008 when he was a resident because the right to receive the bonus was fixed and the amount was determinable before the time he changed his residency.

Example 3: Cindy, a Connecticut resident, won the Connecticut Lottery in 2008. The proceeds from her wager were reported on federal Form W-2G. Cindy will receive her winnings on the installment basis for 20 years. During the 2008 taxable year, Cindy moved out of Connecticut and is a part-year resident because she changed her permanent legal residence. Ordinarily, Cindy's Connecticut Lottery winnings would be subject to special accrual; however, Cindy may avoid special accrual on those lottery winnings as long as the Connecticut Lottery Corporation continues to withhold Connecticut income tax from those winnings. Cindy will remain subject to Connecticut income tax for the years during which the lottery winnings are received.

If Cindy won another state's lottery during 2008, she would be subject to Connecticut income tax while a Connecticut resident. If Cindy moves out of Connecticut, and is a part-year resident because she changed her permanent legal residence, her lottery winnings would be subject to special accrual.

Payment of Tax

If you moved out of Connecticut during the taxable year and you have items of income or gain subject to special accrual, you must either:

Include the items of accrual in the calculation of tax in the year you changed your residence; or
File a surety bond or other security and pay the tax as a nonresident in the year(s) the income is actually received.

Surety Bond

You may elect to defer the payment of Connecticut income tax on items of special accrual by filing a surety bond with DRS in an amount not less than the amount of the additional Connecticut income tax that would be payable if no surety bond or other security were filed. If you choose this option, you must fi le Form CT-1040NR/PY for the taxable year when you change your residence. Include a separate statement showing the nature and amount of each item of special accrual as of the date of change of residence together with a computation of the additional Connecticut income tax which would be due if the election to file a surety bond had not been made.

For more information on the requirements for a surety bond, contact DRS and request a copy of Conn. Agencies Regs. §12-717(c)(4)-1, Form CT-12-717A, Change of Resident Status - Special Accruals, Connecticut Surety Bond Form, and Form CT-12-717B, Change of Resident Status - Special Accruals, Other Acceptable Security Form.

Change From Nonresident to Resident

If you moved into Connecticut during the taxable year, items of income, gain, loss, or deduction that accrue to the period of the year prior to your Connecticut residency are not included in your Connecticut source income. However, items of income derived from or connected with Connecticut sources may not be accrued to the nonresident period and must be included in calculating your Connecticut source income for that year.

Example: Jenna was a California resident from January 1, 2008, until July 31, 2008. She became a Connecticut resident on August 1. While a resident of California, Jenna earned $10,000 for work performed in that state, but she did not receive payment for that work until September 30, 2008.

Jenna also owned a condominium in Connecticut, which she rented to a third party from January 1 to July 31, 2008. She received payment of the rent for the first four months of the year while she was living in California and she received the remaining payments after she became a Connecticut resident.

Jenna will file a Connecticut part-year resident return for 2008. The $10,000 of California source income earned before Jenna changed her residency is accrued to her nonresidency period even though she received the payment after becoming a Connecticut resident. The rental payments from Connecticut real estate are considered Connecticut source income regardless of when she received this income. Therefore, the entire amount of rental income is includable in her Connecticut adjusted gross income and none of it is subject to special accrual.

Forms and Schedules Included in This Booklet

This booklet contains forms you may have to complete in addition to Form CT-1040NR/PY. Below is a description of these forms and an explanation of who should complete them. A self-employed nonresident or part-year resident (for his or her nonresidency period) who carried on business both in and outside of Connecticut may also be required to file Schedule CT-1040BA, Nonresident Business Apportionment. See Page 35 for instructions.

Form	Who Should Complete
Schedule CT-SI Parts 1 and 2 Employee Apportionment Worksheet	All nonresidents and part-year residents A nonresident employee or part-year employee (for his or her nonresidency period) who worked in and outside of Connecticut and does not know the actual amount of Connecticut source income.
Schedule CT-1040AW	All part-year residents

Taxable Year and Method of Accounting

You must use the same taxable year for Connecticut income tax purposes you use for federal income tax purposes. Most individuals use the calendar year as their taxable year for federal income tax purposes. However, if the calendar year is not your taxable year for federal income tax purposes, references in this booklet to 2008 are references to your taxable year beginning during 2008.

You must use the same method of accounting for Connecticut income tax purposes you use for federal income tax purposes.

If your taxable year or method of accounting is changed for federal income tax purposes, the same change must be made for Connecticut income tax purposes.

When to File

Your Connecticut income tax return is due on or before April 15, 2009. If you are not a calendar year filer, your return is due on or before the fifteenth day of the fourth month following the close of your taxable year. If the due date falls on a Saturday, Sunday, or legal holiday, the next business day is the due date. Your return will meet the timely filed and timely payment rules if the U.S. Postal Service cancellation date, or the date recorded or marked by a designated private delivery service (PDS) using a designated type of service, is on or before the due date. Not all services provided by these designated PDSs qualify.

The following are the designated PDSs and designated types of service at the time of publication:

Federal Express (FedEx)

FedEx Priority Overnight
FedEx Standard Overnight
FedEx 2Day
FedEx International Priority
FedEx International First

United Parcel Service (UPS)

UPS Next Day Air
UPS Next Day Air Saver
UPS 2nd Day Air
UPS 2nd Day Air A.M.
UPS Worldwide Express Plus
UPS Worldwide Express

This list is subject to change. See Policy Statement 2008(3), Designated Private Delivery Services and Designated Types of Service.

If Form CT-1040NR/PY is filed late, or all the tax due is not paid with the return, see Interest and Penalties on Page 13 to determine if interest and penalty must be reported with the return.

Extension Requests

Extension of Time to File

To request an extension of time to file your return, you must file Form CT-1040 EXT, Application for Extension of Time to File Connecticut Income Tax Return for Individuals, and pay all the tax you expect to owe on or before the due date.

You do not need to file Form CT-1040 EXT if you:

Have requested an extension of time to file your 2008 federal income tax return and you expect to owe no additional Connecticut income tax for the 2008 taxable year after taking into account any Connecticut income tax withheld from your wages and any Connecticut income tax payments you have made; or
If you pay your expected 2008 Connecticut income tax due using a credit card on or before April 15.

You must file Form CT-1040 EXT if you:

Did not request an extension of time to file your federal income tax return, but you are requesting an extension of time to file your Connecticut income tax return; or
You have requested an extension of time to file your federal income tax return but you expect to owe additional Connecticut income tax for 2008 and wish to submit a payment with Form CT-1040 EXT.

If you file an extension request with a payment after the due date, generally April 15, DRS will deny your extension request.

Form CT-1040 EXT extends only the time to file your return; it does not extend the time to pay your tax due. See Interest and Penalties on Page 13 if you do not pay all the tax due with your extension request.

Visit www.ct.gov/DRS to file your extension over the Internet.

U.S. Citizens Living Abroad

If you are a U.S. citizen or resident living outside the United States and Puerto Rico, or if you are in the armed forces of the United States serving outside the United States and Puerto Rico, and are unable to file a Connecticut income tax return on time, you must file Form CT-1040 EXT. You must also pay the amount of tax due on or before the original due date of the return.

Include with Form CT-1040 EXT a statement that you are a U.S. citizen or resident living outside the United States and Puerto Rico, or in the armed forces of the United States serving outside the United States and Puerto Rico, and that you qualify for a federal automatic extension. If your application is approved, the due date will be extended for six months. If you are still unable to file your return and you were granted an additional extension of time to file for federal purposes, you may fi le your Connecticut return using the federal extension due date. A copy of the federal Form 2350 approval notice must be attached to the front of your Connecticut return.

Extension of Time to Pay

You may be eligible for a six-month extension of time to pay the tax due if you can show paying the tax by the due date will cause undue hardship. You may request an extension by filing Form CT-1127, Application for Extension of Time for Payment of Income Tax, on or before the due date of the original return.

Attach Form CT-1127 to the front of Form CT-1040NR/PY or Form CT-1040 EXT and send it on or before the due date. As evidence of the need for extension, you must attach:

An explanation of why you cannot borrow money to pay the tax due;
A statement of your assets and liabilities; and
An itemized list of your receipts and disbursements for the preceding three months.

Mail payments to:

Department of Revenue Services
Accounts Receivable Unit
PO Box 5088
Hartford CT 06102-5088

If an extension of time to pay is granted and you pay all the tax due in full by the end of the extension period, a penalty will not be imposed. However, interest will accrue on any unpaid tax from the original due date. You should make payments as soon as possible to reduce the interest you would otherwise owe.

To ensure proper posting of your payment, write your SSN(s) (optional) and "2008 Form CT-1040NR/PY" on the front of your check.

May I File My Connecticut Income Tax Return Over the Internet

Most Connecticut taxpayers may use the DRS Taxpayer Service Center (TSC) to file their Connecticut income tax return. For more information about the TSC, see Page 3. You may electronically file your Connecticut income tax return if all of the following are true:

You filed a Connecticut income tax return in the last three years; or You have never filed a Connecticut income tax return, but you have a valid Connecticut driver's license or Connecticut non-driver ID;
Your filing status is the same as the last return DRS has on file. See the chart in the What's New section on Page 4 for information on 2008 filing status options; If your filing status changed from your last filing, you may be able to file electronically through the TSC. If the filing status you want to use is not displayed in the drop-down menu choice, you cannot file electronically through the TSC this year, but you may be able to file electronically through e-file.
You are not filing Form CT-8379, Nonobligated Spouse Claim, with your return;
You are not filing Form CT-1040CRC, Claim of Right Credit; and
You have no more than ten W-2 or 1099 forms that show Connecticut income tax withheld.

Where to File

For refunds and all other tax forms without payment enclosed, use the mailing label with this address and mail your return to:

Department of Revenue Services
PO Box 2968
Hartford CT 06104-2968

For all tax forms with payment enclosed, use the mailing label with this address and mail your return with payment to:

Department of Revenue Services
PO Box 2969
Hartford CT 06104-2969

Estimated Tax Payments

You must make estimated income tax payments if your Connecticut income tax (after tax credits) minus Connecticut tax withheld is $1,000 or more, and you expect your Connecticut income tax withheld to be less than your required annual payment for the 2009 taxable year.

Your required annual payment for the 2009 taxable year is the lesser of:

90% of the income tax shown on your 2009 Connecticut income tax return; or
100% of the income tax shown on your 2008 Connecticut income tax return if you filed a 2008 Connecticut income tax return that covered a 12-month period.

You do not have to make estimated income tax payments if:

You were a Connecticut resident during the 2008 taxable year and you did not file a 2008 income tax return because you had no Connecticut income tax liability; or
You were a nonresident or part-year resident with Connecticut source income during the 2008 taxable year and you did not file a 2008 income tax return because you had no Connecticut income tax liability.

If you were a nonresident or part-year resident and you did not have Connecticut source income during the 2008 taxable year, you must use 90% of the income tax shown on your 2009 Connecticut income tax return as your required annual payment.

2009 Estimated Tax Due Dates Due dates of installments and the amount of required payments for 2009 calendar year taxpayers are:
April 15, 2009	25% of your required annual payment
June 15, 2009	25% of your required annual payment (A total of 50% of your required annual payment should be paid by this date.)
September 15, 2009	25% of your required annual payment (A total of 75% of your required annual payment should be paid by this date.)
January 15, 2010	25% of your required annual payment (A total of 100% of your required annual payment should be paid by this date.)
An estimate will be considered timely fi led if received on or before the due date, or if the date shown by the U.S. Postal Service cancellation mark is on or before the due date. Taxpayers who report on other than a calendar year basis should use their federal estimated tax installment due dates. If the due date falls on a Saturday, Sunday, or legal holiday, the next business day is the due date.

Annualized Income Installment Method

If your income varies throughout the year, you may be able to reduce or eliminate the amount of your estimated tax payment for one or more periods by using the annualized income installment method. See Informational Publication 2008(27), A Guide to Calculating Your Annualized Estimated Income Tax Installments and Worksheet CT-1040 AES.

Filing Form CT-1040ES

Use Form CT-1040ES to make estimated Connecticut income tax payments for 2009. If you made estimated tax payments in 2008, you will automatically receive coupons for the 2009 taxable year in mid-January. They will be preprinted with your name, address, and SSN. To ensure your payments are properly credited, use the preprinted coupons.

If you did not make estimated tax payments in 2008, use Form CT-1040ES, included in this booklet, to make your first estimated income tax payment. If you file this form, additional preprinted coupons will be mailed to you.

You may pay your 2009 estimated Connecticut income tax payments by credit card. See Form CT-1040ES included in this booklet. You may also file and pay your Connecticut estimated tax electronically using the DRS Taxpayer Service Center (TSC). Visit our website at www.ct.gov/DRS and click on the TSC logo for more information.

To avoid making estimated tax payments, you may request that your employer withhold additional amounts from your wages to cover the taxes on other income. You can make this change by giving your employer a revised Form CT-W4, Employee's Withholding Certificate. For help in determining the correct amount of Connecticut withholding to be withheld from your wage income, see Informational Publication 2009(7), Is My Connecticut Withholding Correct?

Special Rules for Farmers and Fishermen

If you are a farmer or fisherman (as defined in I.R.C. §6654(i)(2)) who is required to make estimated income tax payments, you must make only one payment. Your payment is due on or before January 15, 2010, for the 2009 taxable year. The required installment is the lesser of 662/3% of the income tax shown on your 2009 Connecticut income tax return or 100% of the income tax shown on your 2008 Connecticut income tax return.

A farmer or fi sherman who files a 2009 Connecticut income tax return on or before March 1, 2010, and pays in full the amount computed on the return as payable on or before that date, will not be charged interest for underpayment of estimated tax.

Farmers or fishermen who use these special rules must complete and attach Form CT-2210, Underpayment of Estimated Tax by Individuals, Trusts, and Estates, to their Connecticut income tax return to avoid being billed for interest on the underpayment of estimated income tax. Be sure to check Box D of Form CT-2210, Part I, and the box for Form CT-2210 on the front of Form CT-1040NR/PY. See Informational Publication 2008(19), Farmer's Guide to Sales and Use Taxes, Motor Vehicle Fuels Tax, Estimated Income Tax, and Withholding Tax, or Informational Publication 2007(13), Fisherman's Guide to Sales and Use Taxes and Estimated Income Tax.

Interest on Underpayment of Estimated Tax

You may be charged interest if you did not pay enough tax through withholding or estimated payments, or both, by any installment due date. This is true even if you are due a refund when you file your tax return. Interest is calculated separately for each installment. Therefore, you may owe interest for an earlier installment even if you paid enough tax later to make up the underpayment. Interest at 1% per month or fraction of a month will be added to the tax due until the earlier of April 15, 2009, or the date on which the underpayment is paid.

A taxpayer who files a 2008 Connecticut income tax return on or before January 31, 2009, and pays in full the amount computed on the return as payable on or before that date, will not be charged interest for failing to make the estimated payment due January 15, 2009.

A farmer or fisherman who is required to make estimated income tax payments will not be charged interest for failing to make the estimated payment due January 15, 2009, if he or she files a 2008 Connecticut income tax return on or before March 1, 2009, and pays in full the amount computed on the return as payable on or before that date.

Filing Form CT-2210

You may be charged interest if your 2008 Connecticut income tax (after tax credits) minus Connecticut tax withheld is $1,000 or more. Use Form CT-2210 to calculate interest on the underpayment of estimated tax. Form CT-2210 and detailed instructions are available from DRS. However, this is a complex form and you may prefer to have DRS calculate the interest. If so, do not file Form CT-2210 and DRS will send you a bill.

Interest and Penalties

In general, interest and penalty apply to any portion of the tax not paid on or before the original due date of the return.

Interest

If you do not pay the tax when due, you will owe interest at 1% per month or fraction of a month until the tax is paid in full.

If you did not pay enough tax through withholding or estimated payments, or both, by any installment due date, you may be charged interest. This is true even if you are due a refund when you file your tax return. See Interest on Underpayment of Estimated Tax on this page.

Interest on underpayment or late payment of tax cannot be waived.

Penalty for Late Payment or Late Filing

The penalty for late payment or underpayment of income or use tax is 10% of the tax due. If a request for an extension of time to file has been granted, you can avoid a penalty for failure to pay the full amount due by the original due date if you:

Pay at least 90% of the income tax shown to be due on the return on or before the original due date of the return; and
Pay the balance due with the return on or before the extended due date. If you file your return electronically and pay your balance due by check, then your check must be postmarked on whichever is earlier: the date of acceptance of the electronic return or the extended due date.

If no tax is due, DRS may impose a $50 penalty for the late filing of any return or report that is required by law to be filed.

Penalty for Failure to File

If you do not file your return and DRS files a return for you, the penalty for failure to file is 10% of the balance due or $50, whichever is greater. If you are required to file Form CT-1040X, Amended Connecticut Income Tax Return for Individuals, and fail to do so, a penalty may be imposed.

Waiver of Penalty

You may be able to have your penalty waived if the failure to file or pay tax on time was due to a reasonable cause and was not intentional or due to neglect. Before a penalty waiver can be granted, all tax and interest must be paid. Interest cannot be waived.

All requests must include:

A clear and complete written explanation;
Your name and SSN;
The taxable fi ling period;
The name of the original form filed or billing notice received; and
Documentation supporting your explanation.

Attach your request to the front of your tax return or mail separately with a copy of your tax return to:

Department of Revenue Services
Penalty Waiver Unit
PO Box 5089
Hartford CT 06102-5089

Refund Information

DRS issues refund checks as quickly as possible. If you electronically file your return, you will be issued your refund in four days unless additional review is required. However, for returns filed on paper, you must allow eight to ten weeks from the date you mailed your return before calling to check on the status of your refund.

You may check on the status of your refund anytime by calling 1-800-382-9463 (Connecticut calls outside the Greater Hartford calling area only) or 860-297-5962 (from anywhere). You can also check on the status of your refund on the TSC. Click on Individual to reach the Welcome Page. You can also check on the status of your refund on the TSC at www.ct.gov/myrefund.

Be ready to provide your SSN (and your spouse's if fi ling jointly) and the exact amount of the refund you requested. If DRS does not issue your refund on or before the ninetieth day after we receive your claim for refund, you may be entitled to interest on your overpayment. Interest is computed at the rate of 2/3% for each month or fraction of a month between the ninetieth day following receipt of your properly completed claim for a refund or the due date of your return, whichever is later, and the date of notice that your refund is due.

Offset Against Debts

If you are due a refund, all or part of your overpayment may be used to pay outstanding debts or taxes. Your overpayment will be applied in the following order: penalty and interest you owe; 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 2009 estimated tax; and charitable contributions designated by you. Any remaining balance will be refunded to you. If your refund is reduced, you will be mailed an explanation for the reduction.

Nonobligated Spouse

When a joint return is filed and only one spouse owes past-due child support, a debt to any Connecticut state agency, or tax due to another state, the spouse who is not obligated may be eligible to claim a share of a joint income tax refund. A nonobligated spouse who received income in 2008 and who made Connecticut income tax payments (withholding or estimates) for the 2008 taxable year may be eligible to claim his or her share of any refund if:

A joint Connecticut tax return was filed for 2008; and
An overpayment of tax was made.

If you are a nonobligated spouse, you may claim your share of a joint refund by filing Form CT-8379, Nonobligated Spouse Claim. When filing Form CT-8379, attach all W-2 and 1099 forms showing Connecticut income tax withheld. Remember to check the box on the front of your Connecticut income tax return and attach Form CT-8379 to the front of your return.

Do not use Form CT-8379 to claim your share of a Connecticut refund that was applied to federal taxes you owe to the IRS. You must contact the IRS Office of the Local Taxpayer Advocate in Hartford, Connecticut at 860-756-4555.

Completing Form CT-1040NR/PY

Before you begin, gather all your records, including all your federal W-2 and 1099 forms. Use this information to complete your federal income tax return. The information on your federal return is needed to complete your Connecticut return. Complete the return in blue or black ink only.

1. Taxpayer Information

Filing Status

Check the appropriate box to indicate your filing status. You may only check one box. Except as otherwise noted, any reference in these instructions to a spouse also refer to a party to a civil union recognized under Connecticut law (civil union partners).

Generally, your filing status for Connecticut income tax purposes must match your federal income tax filing status for the year except as otherwise noted.

Civil union partners or spouses in a marriage recognized under Kerrigan v. Commissioner of Public Health, 289 Conn. 135 (2008) (Kerrigan) must use filing jointly for Connecticut only or filing separately for Connecticut only. They may not use single or, if applicable, head of household (although this will be their filing status for federal income tax purposes).

Filing Jointly for Federal and Connecticut: This is your Connecticut income tax filing status if your filing status for federal income tax purposes is married filing jointly except as noted below.

If you are a resident or nonresident of Connecticut and your spouse is a part-year resident of Connecticut, filing separately for Connecticut only is your Connecticut income tax filing status.
If you are both part-year residents of Connecticut but do not have the same period of residency, fi ling separately for Connecticut only is your Connecticut income tax filing status.
If you are both part-year residents of Connecticut and have the same period of residency, filing jointly for federal and Connecticut is your Connecticut income tax fi ling status.
If you are a resident of Connecticut and your spouse is a nonresident of Connecticut, filing separately for Connecticut only is your Connecticut income tax filing status unless you both elect to be treated as residents of Connecticut for the entire taxable year and to file a joint Connecticut income tax return. If an election is made, filing jointly for federal and Connecticut is your Connecticut income tax fi ling status.
If you are both nonresidents of Connecticut and only one of you 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 filing separately for Connecticut only unless you both elect to file a joint Connecticut income tax return. If an election is made, filing jointly for federal and Connecticut is your Connecticut income tax fi ling status.

Filing Jointly for Connecticut Only: This is your Connecticut income tax filing status if you are parties to a civil union recognized under Connecticut law or if you are in a marriage recognized under Kerrigan and have elected to file a joint Connecticut income tax return except as noted below:

If you are a resident or nonresident of Connecticut and your spouse is a part-year resident of Connecticut, filing separately for Connecticut only is your Connecticut income tax fi ling status.
If you are both part-year residents of Connecticut but do not have the same period of residency, fi ling separately for Connecticut only is your Connecticut income tax filing status.
If you are both part-year residents of Connecticut and have the same period of residency, you may choose fi ling jointly for Connecticut only or filing separately for Connecticut only as your Connecticut income tax fi ling status.
If you are a resident of Connecticut and your spouse is a nonresident of Connecticut, filing separately for Connecticut only is your Connecticut income tax filing status unless you both elect to be treated as residents of Connecticut for the entire taxable year and to file a joint Connecticut income tax return. If an election is made, filing jointly for Connecticut only is your Connecticut income tax fi ling status.
If you are both nonresidents of Connecticut and only one of you has income derived from or connected with sources within Connecticut, only that spouse is required to fi le a Connecticut income tax return and that spouse's Connecticut income tax filing status is filing separately for Connecticut only, unless you both elect to file a joint Connecticut income tax return. If an election is made, filing jointly for Connecticut only is your Connecticut income tax fi ling status.

Filing Separately for Federal and Connecticut: This is your Connecticut income tax filing status if your filing status for federal income tax purposes is married fi ling separately.

Filing Separately for Connecticut Only: This is your Connecticut income tax filing status if you are civil union partners or if you are spouses in a marriage recognized under Kerrigan and have not elected to file a joint Connecticut income tax return. This is also your Connecticut income tax fi ling status if the instructions above so indicate.

If your filing status is qualifying widow(er) with dependent child on federal From 1040 or 1040A, check the box on Form CT-1040EZ for "Qualifying widow(er) with dependent child." Do not enter your deceased spouse's name or SSN in the spaces provided for spouse's name and spouse's SSN.

Spouses With Different Residency Status

When one spouse is a nonresident alien and the other spouse is a citizen or resident of the United States, each spouse who is required to file a Connecticut income tax return must fi le as filing separately for Connecticut only unless:

An election is made by the nonresident alien and his or her spouse to file a joint federal income tax return and they do, in fact, file a joint federal income tax return. This requirement does not apply if you are civil union partners or spouses in a marriage recognized under Kerrigan; 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-1040NR/PY, Line 1. It also means the spouse who might not otherwise be required to file a Connecticut income tax return will now be jointly and severally liable for any tax liability associated with the filing of a joint Connecticut 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 has 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-1040NR/PY, Line 1, your income as recalculated. This provision does not apply if you are civil union partners or spouses in a marriage recognized under Kerrigan.

Taxpayers Filing Jointly for Connecticut Only: Taxpayers filing jointly for Connecticut only must recalculate their federal adjusted gross income as if, for federal tax purposes, they were allowed and elected to file as married fi ling jointly.

Employer provided health insurance coverage for an employee's civil union partner or for a spouse in a marriage recognized under Kerrigan is taxable income to the employee for federal income tax purposes. In this case, you must subtract the amount from your federal adjusted gross income and enter the result on Line 1 of your Connecticut income tax return.

Social Security Number, Name, and Address

You must enter your Social Security Number (SSN), name, and address in the space provided. 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 on Page 6.

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, fi le your return without the ITIN, pay the tax due, and attach a copy of the federal Form W-7. 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. If you fail to submit the information requested, the processing of your return will be delayed.

Rounding Off to Whole Dollars

You must round off cents to the nearest whole dollar on your return and schedules. Round down to the next lowest dollar all amounts that include 1 through 49 cents. Round up to the next highest dollar all amounts that include 50 through 99 cents. However, if you need to add two or more amounts to compute the amount to enter on a line, include cents and round off only the total. If you do not round, DRS will disregard the cents.

Example: Add two amounts ($1.29 + $3.21) to compute the total ($4.50) to enter on a line. $4.50 is rounded to $5.00 and entered on the line.

2. Calculate Your Tax

Except as otherwise noted, any reference in these instructions to filing jointly includes filing jointly for federal and Connecticut and filing jointly for Connecticut only. Likewise, filing separately includes filing separately for federal and Connecticut and filing separately for Connecticut only.

Line 1: Federal Adjusted Gross Income

Enter your federal adjusted gross income from your 2008 federal income tax return. This is the amount reported on federal Form 1040, Line 37; federal Form 1040A, Line 21; or federal Form 1040EZ, Line 4.

Nonresident aliens, see Special Information for Nonresident Aliens on Page 7. Civil union partners or spouses in a marriage recognized under Kerrigan, see Taxpayers Filing Jointly for Connecticut Only on this page.

Line 2: Additions

Enter the amount from Form CT-1040NR/PY, Schedule 1, Line 41. See Additions to Federal Adjusted Gross Income on Page 20.

Line 3

Add Line 1 and Line 2. Enter the total on Line 3.

Line 4: Subtractions

Enter the amount from Form CT-1040NR/PY, Schedule 1, Line 52. See Subtractions From Federal Adjusted Gross Income on Page 21.

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 From Connecticut Sources

Complete Schedule CT-SI. See Schedule CT-SI Instructions on Page 28. Enter the income from Connecticut sources from Schedule CT-SI, Line 30.

Line 7

Enter the greater of Line 5 or Line 6 on Line 7. If Line 5 and Line 6 are equal, enter that amount on Line 7. If the amount on Line 7 is zero or less, go to Line 12 and enter "0."

Line 8: Income Tax

For each filing status, if the amount on Line 7 is: $12,000 or less for filing separately; $13,000 or less for single; $19,000 or less for head of household; or $24,000 or less for fi ling jointly or qualifying widow(er) with dependent child, enter "0" on Line 8. You do not owe any income tax. Otherwise, use one of the following methods to calculate your tax:

Tax Tables: If Line 7 is less than or equal to $102,000, you may use the tax tables on Page 42 to find your tax. Be sure to use the correct column in the tax tables. After you have found the correct tax, enter that amount on Line 8.
Tax Calculation Schedule: If your Connecticut adjusted gross income is more than $102,000, you must use the Tax Calculation Schedule on Page 52 or visit www.ct.gov/DRS to use the Income Tax Calculator on the DRS website to fi gure your tax. You may also use the Tax Calculation Schedule if your Connecticut adjusted gross income is less than or equal to $102,000.

Nonresidents or part-year residents must calculate the tax in the same manner as resident individuals. Then, nonresidents or part-year residents prorate the tax based upon the percentage of their Connecticut adjusted gross income derived from or connected with Connecticut sources.

Example 1: Sandy, a nonresident individual whose filing status is single, worked in Connecticut during the entire 2008 taxable year. Sandy enters $40,000 on Form CT-1040NR/PY, Line 5, and $20,000 on Form CT-1040NR/PY, Line 6. Because the amount on Line 5 is greater than the amount on Line 6, Sandy enters $40,000 on Form CT-1040NR/PY, Line 7. Sandy finds the tax on $40,000 in the tax tables and enters $1,619 on Form CT-1040NR/PY, Line 8. Sandy then divides Line 6 by Line 5 and enters 50% on Line 9. Sandy's Connecticut income tax is $810 ($1,619 x .50) and she enters this amount on Form CT-1040NR/PY, Line 10.

Example 2: William, a part-year resident individual whose fi ling status is single, moved from Connecticut to Rhode Island on August 15, 2008. William enters $20,000 on Form CT-1040NR/PY, Line 5, and $40,000 on Form CT-1040NR/PY, Line 6. Because the amount on Line 6 is greater than the amount on Line 5, William enters $40,000 on Form CT-1040NR/PY, Line 7. William then fi nds the tax on $40,000 in the tax tables and enters $1,619 on Form CT-1040NR/PY, Line 8. Because the amount on Line 6 is greater than the amount on Line 5, William enters 1.0000 on Line 9. William's Connecticut income tax is $1,619 ($1,619 x 1.0000) and he enters this amount on Form CT-1040NR/PY, Line 10.

Line 9

If Line 5 is greater than Line 6, divide Line 6 by Line 5 and enter the result. If the result is less than zero, enter "0." If Line 6 is equal to or greater than Line 5, enter 1.0000. Do not enter a number that is less than zero or greater than one. Round to four decimal places.

Line 10

Multiply Line 9 by Line 8 and enter the result on Line 10.

Line 11: Credit for Income Taxes Paid to Qualifying Jurisdictions (Part-Year Residents Only)

If all or part of the income reported on this return for the period of your Connecticut residency is subject to income tax in a qualifying jurisdiction and you have fi led a return and paid income taxes to that jurisdiction, complete Form CT-1040NR/PY, Schedule 2, and enter the amount from Line 61 here. See Schedule 2 - Credit for Income Taxes Paid to Qualifying Jurisdictions (Part-Year Residents Only) on Page 24.

The credit for income tax paid to other jurisdictions is limited to part-year residents for the period of their Connecticut residency.

You must attach a copy of your return filed with the qualifying jurisdiction(s) or the credit will be disallowed.

Line 12

Subtract Line 11 from Line 10 and enter the result. If Line 11 is greater than Line 10, enter "0."

Line 13: Connecticut Alternative Minimum Tax

If you were required to pay the federal alternative minimum tax for 2008, you must fi le Form CT-6251, Connecticut Alternative Minimum Tax Return - Individuals. Enter on Line 13 the amount shown on Form CT-6251, Line 23.

Line 14

Add Line 12 and Line 13. Enter the total on Line 14.

Line 15: Adjusted Net Connecticut Minimum Tax Credit

Enter the amount from Form CT-8801, Credit for Prior Year's Connecticut Minimum Tax for Individuals, Trusts, and Estates. If you did not pay Connecticut alternative minimum tax in 1993 or after, or if you entered an amount on Form CT-1040NR/PY, Line 13, enter "0."

Line 16: Connecticut Income Tax

Subtract Line 15 from Line 14 and enter the result. If less than zero, enter "0."

Line 17: Individual Use Tax

Complete and attach Schedule 3 on Page 4 of Form CT-1040NR/PY. Enter the total use tax due as reported on Schedule 3, Line 62. You must enter "0" if no Connecticut use tax is due; otherwise you will not have fi led a use tax return.

Line 18 and Line 19

Add Line 16 and Line 17. Enter the total on Line 18 and Line 19.

3. Payments

Line 20: Connecticut Tax Withheld

For each federal W-2 or 1099 form or Schedule CT K-1 form where Connecticut income tax was withheld, enter the following on Lines 20a through 20g.

Column A: Enter the Employer Identifi cation Number or the Payer Identifi cation 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.

Nonresident partners or shareholders: Complete Columns A and C by entering information from Schedule CT K-1, Member's Share of Certain Connecticut Items, Part III, Line 1. Remember to enter the FEIN and to check the box indicating that the withholding is from Schedule CT K-1.

If you have more than seven federal W-2 or 1099 forms and Schedule CT K-1 forms 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-1040NR/PY. Enter the total from Supplemental Schedule CT-1040WH, Line 3, on the last line of Column C, Line 20h.

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 20.

Do not send copies of W-2, 1099, and Schedule CT K-1 forms.

Keep these for your records. DRS may request them at a later date. When filing Form CT-8379, Nonobligated Spouse Claim, attach all W-2 and 1099 forms showing Connecticut income tax withheld.

Line 21: All 2008 Estimated 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. Be sure to include any 2008 estimated tax payments made in 2009. Do not include any refunds received.

Line 22: 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 23: Total Payments

Add Lines 20, 21, and 22 and enter the total. This is the total of all Connecticut tax payments made.

4. Overpayment

Line 24: Amount Overpaid

If Line 23 is greater than Line 19, subtract Line 19 from Line 23 and enter the result. This is your overpayment. To properly allocate your overpayment, go to Lines 25, 26, and 27. If Line 23 is less than Line 19, go to Line 28.

If you were required to make estimated income tax payments, but you did not pay enough tax through withholding, estimated tax, or both, by any installment due date, your refund 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 25: Amount of Line 24 You Want Applied to Your 2009 Estimated Tax

Enter the amount of your 2008 overpayment that you want applied to your 2009 estimated Connecticut income tax. It will be treated as estimated tax paid on April 15, 2009, 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, 2009, will be applied as of the date of receipt. Your request to apply this amount to your 2009 estimated income tax is irrevocable.

Line 26: Total Contributions to Designated Charities

You may make a contribution on this return only if you are entitled to a refund. Your contribution is limited to your refund amount. Complete Schedule 4 on Form CT-1040NR/PY. Enter the total contributions as reported on Schedule 4, Line 63. Your contribution is irrevocable.

You may also make direct contributions by following the instructions on Page 40.

Line 27: Amount of Line 24 to Be Refunded to You

Subtract the total of Line 25 and Line 26 from Line 24 and enter the result. This is the amount of your refund. Early filers receive their refunds faster. Be sure to affi x the refund label to the envelope when mailing your return.

Get your refund faster by choosing direct deposit. Complete Lines 27a, 27b, and 27c to have your refund directly deposited into your checking or savings account.

Enter your nine-digit bank routing number and your bank account number in Lines 27b and 27c. Your bank routing number is 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 digits and must be numeric.

If any of the bank information you supply for direct deposit does not match, a paper check will automatically be issued to you. Some financial institutions do not allow a joint refund to be deposited into an individual account.

Your overpayment will be applied in the following order: penalty and interest you owe; 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 2009 estimated tax; and charitable contributions designated by you. Any remaining balance will be refunded to you.

5. Amount You Owe

Line 28: Amount of Tax You Owe.

If Line 19 is greater than Line 23, subtract Line 23 from Line 19 and enter the result. This is the amount of tax you owe. See Estimated Tax Payments on Page 12.

Line 29: 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 of Late Filing on Page 13.

Late Filing Penalty: In the event no tax is due, DRS may impose a $50 penalty for the late filing of any return or report that is required by law to be filed.

Line 30: Interest for Late Payment or Late Filing

If you fail to pay the tax when due, interest will be charged at the rate of 1% per month or fraction of a month from the due date until payment is made.

Line 31: Interest on Underpayment of Estimated Tax

If Line 16 minus Line 20 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 fi le 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, 2009.

Line 32: Total Amount Due

Add Lines 28 through 31 and enter the total. This is the total amount you owe. Pay the amount in full with your return.

Payment Options

Pay Electronically

Visit the DRS Taxpayer Service Center (TSC) at www.ct.gov/DRS and follow the prompts to make a direct payment. However, you can also visit https://drsindtax.ct.gov to make a direct payment without having to login into the TSC. You can authorize DRS to transfer funds from your bank account (checking or savings) to a DRS account by entering your bank account number and your bank routing transit number. You can file your return any time before the due date and designate the amount of payment and date of transfer. Your bank account will be debited on the date you indicate. You must pay the balance due on or before the due date of April 15, 2009, to avoid penalty and interest.

Pay by Credit Card or Debit Card

If you filed a 2007 Connecticut income tax return, you may elect to pay your 2008 Connecticut income tax liability using your American Express® cards, Discover® card, MasterCard® card, VISA® card, or comparable debit card. A convenience fee will be charged by the credit card service provider. The fee is 2.49% of your total tax payment. You will be informed of the amount of the fee and you may elect to cancel the transaction. At the end of the transaction, you will be given a confirmation number for your records.

Call Official Payments Corporation toll-free at 1-800-2PAY-TAX (1-800-272-9829). You will be asked to enter the Connecticut Jurisdiction Code: 1777; or
Visit: www.officialpayments.com and select Payment Center. Your payment will be effective on the date you make the charge.

Pay by Mail

Make your check payable to Commissioner of Revenue Services. To ensure proper posting of your payment, write "2008 Form CT-1040NR/PY" and your SSN(s) (optional) on the front of your check. Be sure to sign your check and paper clip it to the front of your return. Do not send cash. DRS may submit your check to your bank electronically.

Failure to file or failure to pay the proper amount of tax when due will result in penalty and interest charges. It is to your advantage to file when your return is due whether or not you are able to make full payment.

6. Sign Your Return

After you complete your Connecticut Form CT-1040NR/PY, 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-1040NR/PY.

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.

Paid Preparer Signature

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

Third Party Designee

To authorize DRS to contact your friend, family member, or any other person to discuss your 2008 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.

If you enter a designee's name, you and your spouse, if fi ling 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 completes processing 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 2009 tax return. This is April 15, 2010, for most taxpayers.

Selecting a designee does not replace a power of attorney and will not authorize the designee to receive refund checks, 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

Paper clip your check in payment of the tax due to the front of the income tax form in the appropriate area marked "Clip check here." To ensure proper posting of your payment, write "2008 Form CT-1040NR/PY" and your SSN(s) (optional) on the front of your check.

In addition, if you must file any of the following forms, attach the form(s) to the front of your income tax return in the following order:

Form CT-1040CRC, Claim of Right Credit
Form CT-19IT, Title 19 Status Release
Form CT-1127, Application for Extension of Time for Payment of Income Tax
Form CT-8379, Nonobligated Spouse Claim

Attach other required forms and schedules, including Supplemental Schedule CT-1040WH, Connecticut Income Tax Withholding, to the back of your return or as directed on the form. 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 copies of any required schedules and forms. Do not attach copies of your federal income tax return or federal schedules.

Remove both labels from the envelope flap along the perforation.
Choose the correct label for your return, moisten, and place it on the return envelope.
Affix the correct postage to the envelope.

Do not use these mailing labels to send other correspondence to DRS. Using these labels for other purposes will delay our response to you.

Recordkeeping

Keep a copy of your tax return, worksheets that you used, and records of all items appearing on the return (such as W-2 and 1099 forms) until the statute of limitations expires for that return. Usually, this is three years from the date the return was due or filed, whichever is later. You may need this information to prepare future returns or to file amended returns.

Copies of Returns

You may request a copy of a previously-fi led Connecticut income tax return from DRS by completing LGL-002, Request for Disclosure of Tax Return or Tax Return Information. You can usually expect to receive your copy in approximately three weeks.

CT-1040 NR/PY 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 33: 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 34: 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 35: Reserved for Future Use

Line 36: 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 to compute the tax on any part of a distribution from a qualified plan, enter that part of the distribution on Line 36. Do not enter any part of the distribution reported on federal Form 1040A, Line 12a; federal Form 1040, Line 16a; or federal Form 1040, Schedule D.

Part-year residents should enter this amount on Schedule CT-1040AW, Part-Year Resident Income Allocation, Line 14, Column A.

Line 37: 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, 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 fi duciary. If your share of these modifications is an amount greater than zero, enter the amount on Line 37. If the amount is less than zero, enter the amount on Line 48.

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 37 or, if less than zero, on Line 48.

Line 38: 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 in determining gain (loss) for federal income tax purposes, whether or not the entire loss is used in computing federal adjusted gross income.

Line 39: Reserved for Future Use

Line 40: Other

Use Line 40 to report any of the following modifications:

Add back any treaty income reported on federal Form 1040NR-EZ or Form 1040NR if a nonresident alien. Enter the words "treaty income" in the space provided.
Add back any loss or deduction of an enrolled member of the Mashantucket Pequot Tribe who resides in Indian country of the tribe or any loss or deduction of an enrolled member of the Mohegan Tribe who resides in Indian country of the 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.
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.
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.
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.
Add back any interest or dividend income on obligations or securities of any authority, commission, or instrumentality of the U.S. which federal law exempts from federal income tax but does not exempt from state income taxes.
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).
Enter any item of income or gain subject to special accrual to the extent the item was not includible in federal adjusted gross income for the taxable year. See Items Subject to Special Accrual on Page 9.
Also use Line 40 to report any additions to federal adjusted gross income required for Connecticut income tax purposes which are not listed on Lines 33 through 38.

Line 41: Total Additions

Add Lines 33 through 40 and enter the total on Form CT-1040NR/PY, Schedule 1, Line 41.

Subtractions From Federal Adjusted Gross Income

Enter all amounts as positive numbers.

Line 42: 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 42 only the amount of interest subject to federal income tax after exclusion of the amounts reported on federal Form 8815. In general, you report the net taxable amount on federal Form 1040, Schedule B, or federal Form 1040A, Schedule 1.

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 43: Exempt Dividends From CertainQualifying Mutual Funds Derived From U.S. Government Obligations

Enter the total amount of exempt dividends received from a qualifying mutual fund 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.

Social Security Benefit Adjustment Worksheet - Line 44

Enter the amount from Form CT-1040NR/PY, Line 1. ... If your filing status is single or filing separately, is the amount on Line 1 $50,000 or more? Yes: Complete this worksheet. No: Do not complete this worksheet. Enter the amount of federally taxable Social Security benefi ts you reported on federal Form 1040, Line 20b, or federal Form 1040A, Line 14b, on Form CT-1040NR/PY, Line 44. If your filing status is filing jointly, qualifying widow(er), or head of household, is the amount on Line 1 $60,000 or more? Yes: Complete this worksheet. No: Do not complete this worksheet. Enter the amount of federally taxable Social Security benefi ts you reported on federal Form 1040, Line 20b, or federal Form 1040A, Line 14b, on Form CT-1040NR/PY, Line 44.
A. Enter the amount reported on your 2008 federal Social Security benefits Worksheet, Line 1.If Line A is zero or less, stop here and enter "0" on Line 44. Otherwise, go to Line B.	A.
B. Enter the amount reported on your 2008 federal Social Security benefits Worksheet, Line 9. However, if filing separately and you lived with your spouse at any time during 2008, enter the amount reported on Line 7 of your federal Social Security Benefits Worksheet. If Line B is zero or less, stop here. Otherwise, go to Line C.	B.
C. Enter the lesser of Line A or Line B.	C.
D. Multiply Line C by 25% (.25).	D.
E. Taxable amount of Social Security benefits reported on your 2008 federal Social Security benefits Worksheet, Line 18.	E.
F. Social Security Benefit Adjustment - Subtract Line D from Line E. Enter the amount here and on Form CT-1040NR/PY, Line 44. If Line D is greater than or equal to Line E, enter "0."	F.

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 that should be reported on Line 43 is $55.

Line 44: Social Security Benefi t 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. Parties to a civil union recognized under Connecticut law or spouses in a marriage recognized under Kerrigan must recompute their federal adjusted gross income as if their filing status for federal income tax purposes were married filing jointly or married filing separately. Your Social Security benefits are fully exempt from Connecticut income tax if your required filing status is single or filing separately and the amount reported on Form CT-1040NR/PY, Line 1, is less than $50,000, or fi ling jointly, qualifying widow(er) with dependent child, or head of household and the amount reported on Form CT-1040NR/PY, Line 1, is less than $60,000. If this is the case, enter the amount of federally taxable Social Security benefits reported on federal Form 1040, Line 20b, or federal Form 1040A, Line 14b. 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 contained in the instructions to federal Form 1040A or federal Form 1040 to calculate the amount of taxable Social Security benefits, complete the Social Security Benefit Adjustment Worksheet above and enter the amount from Line F on Line 44. If you did not use these worksheets, but instead used worksheets contained in federal Publication 590 or federal Publication 915, see Informational Publication 2008(24), Connecticut Tax Tips for Senior Citizens.

If you are using a worksheet that is 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 the line references from these worksheets are the same as the equivalent federal publication to be certain you are using the proper amounts.

Line 45: Refunds of State and Local Income Taxes

Enter the amount of taxable refunds of state and local income taxes reported on federal Form 1040, Line 10. If Line 10 is blank or you filed federal Forms 1040A or 1040EZ, enter "0."

Line 46: 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 2008, you may deduct the amount included in your federal adjusted gross income, but only to the extent the benefits were not already subtracted from federal adjusted gross income on Line 44 (Social Security Benefit Adjustment). Enter the balance not already subtracted on Line 44 of Tier 1 and Tier 2 railroad retirement benefits reported on federal Form 1040, Line 16b or Line 20b, or federal Form 1040A, Line 12b or Line 14b. See Informational Publication 2008(24), Connecticut Tax Tips for Senior Citizens. 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 benefits paid by the RRB resulting from an on-the-job injury because these benefits are not included in your federal adjusted gross income.

Line 47: Special Depreciation Allowance for Qualified Property Placed in Service During Preceding Year(s)

If you added bonus depreciation to your federal adjusted gross income on your 2004 Form CT-1040NR/PY, Line 35, you may subtract 25% of that bonus depreciation amount on Line 47.

Example: Linda was required to make an addition modification of $6,000 on Line 35 of her 2004 CT-1040NR/PY. On her 2008 Form CT-1040NR/PY, Line 47, she will make a subtraction modification of $1,500. This amount is 25% of $6,000 reported on her 2004 Form CT-1040NR/PY, Line 35.

Line 48: Beneficiary's Share of ConnecticutFiduciary 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 Schedule CT-1041B, Part 1, Column 5. Your share of these modifications should be provided to you by the fiduciary. If your share of these modifications is an amount less than zero, enter the amount on Line 48. If the amount is greater than zero, enter the amount on Line 37.

If you are a beneficiary of more than one trust or estate, enter the net amount of all the modifications, if less than zero, on Line 48.

Line 49: 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 in determining gain (loss) for federal income tax purposes.

Line 50: 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 widow(er) with dependent child.

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 provided the CHET contribution carried forward and subtracted from federal adjusted gross income of the succeeding taxable years does not exceed the maximum CHET contribution.

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.

Line 51: Other

Use Line 51 to report any of the following modifications:

Subtract any income or gain of an enrolled member of the Mashantucket Pequot Tribe who resides in Indian country of the tribe or any income or gain of an enrolled member of the Mohegan Tribe who resides in Indian country of the 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.
Subtract the amount of interest earned on funds deposited in a Connecticut individual development account to the extent included in federal adjusted gross income.
Subtract any interest paid on indebtedness incurred to acquire investments that provide income taxable in Connecticut but are exempt for federal purposes, that is not deductible in determining federal adjusted gross income, and that is attributable to a trade or business of that individual.
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.
Subtract the amount of any distributions you received from the Connecticut Higher Education Trust Fund (CHET) as a designated beneficiary to the extent includable 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 51.
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.
Enter any item of loss or deduction subject to special accrual to the extent the item was not deductible in determining federal gross income for the taxable year. See Items Subject to Special Accrual on Page 9.
Subtract the amount of any interest income from notes, bonds, or other obligations of the State of Connecticut included in federal adjusted gross income.
Subtract the amount of military pay received by a nonresident or part-year resident during the part-year resident's nonresidency portion of the taxable year to the extent includable in federal adjusted gross income. Page 23
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 is properly included in the gross income of the designated beneficiary for federal income tax purposes.
Subtract 50% of the 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 or if you are a beneficiary receiving survivor benefits under an option or election made by a deceased retired military member.

Do not use Line 51 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 Spouses With Different Residency Status on Page 15.

Line 52: Total Subtractions

Add Lines 42 through 51. Enter the total on Form CT-1040NR/PY, Schedule 1, Line 52.

Schedule 2 - Credit for Income Taxes Paid to Qualifying Jurisdictions (Part-Year Residents Only)

Am I Eligible for the Credit for Income Taxes Paid to Qualifying Jurisdictions

If you are a part-year resident of Connecticut and if any part of your income earned during the residency portion of your taxable year 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.

Nonresidents may not claim a credit for income taxes paid to other jurisdictions. - 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 a qualifying jurisdiction; and
Subject to tax in the qualifying jurisdiction.

Income Derived From or Connected With Sources Within a Qualifying Jurisdiction

Compensation received for personal services performed in a 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 2005(16), 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 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 or Connecticut source 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.

Limitations to the Credit

The total credit is limited to whichever amount is least:

The amount of income tax paid to the qualifying jurisdiction;
The amount of Connecticut income tax due on the portion of Connecticut adjusted gross income sourced in the qualifying jurisdiction and earned during the residency portion of your taxable year; or
The amount entered on Form CT-1040NR/PY, Line 10.

How to Calculate the Credit

You must first complete your income tax return(s) in the qualifying jurisdiction(s). Then, complete the Schedule 2 Worksheet on Page 26 to determine the amount to enter on Schedule 2, Line 55.

The allowable 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.

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-1040NR/PY.

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 the Line 61 example on Page 27):

Use only one column on Form CT-1040NR/PY, Schedule 2, to calculate your credit;
Enter the same income taxed by both city and state in that column on Schedule 2; and
Combine the amounts of tax paid to the city and the state and enter the total on Line 59 of that column.

B. If the amounts of income taxed by both the city and state are not the same:

Use two columns on Form CT-1040NR/PY, Schedule 2;
Include only the same income taxed by both jurisdictions in the fi rst column; and
Include the excess income taxed by only one of the jurisdictions in the next column.

Schedule 2 - Worksheet Instructions

Complete the Schedule 2 Worksheet on Page 26 to determine the portion of your Connecticut adjusted gross income during the residency portion of your taxable year derived from a qualifying jurisdiction. Enter in Column I the items of income you earned during the residency portion of your taxable year and entered on Schedule CT-1040AW, Column B. For each line in Column II, enter the items of income from Column I that meet all of the following conditions:

The income was earned during the residency portion of your taxable year;
The income is derived from or connected with sources within a qualifying jurisdiction;
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.

Example 1: Laura, a single taxpayer, was employed in the State of New York during the entire taxable year and moved into Connecticut on July 1. Her Connecticut adjusted gross income is $105,000. On Form CT-1040NR/PY, Schedule CT-1040AW, Column A, Laura reported the following: $76,000 in wages, $4,000 in interest, and $25,000 from dividends received November 2. Laura enters on Schedule 2 Worksheet, Column I, the amounts she entered on Form CT-1040NR/PY, Schedule CT-1040AW, Column B: Line 1, $38,000; Line 2, $2,000; and Line 3, $25,000. In Column II, she enters: Line 1, $38,000. Credit is allowed for the New York tax paid on her $38,000 of wage income because it is derived from or connected to New York during the Connecticut residency portion of her taxable year.

Example 2: Luke and Leslie are part-year residents who file a joint federal Form 1040 and Form CT-1040NR/PY. Luke's wages as an employee working in Rhode Island while a resident of Connecticut are $20,000 and Leslie's wages as an employee working in Connecticut while a resident of Connecticut are $25,000. Their combined wages while nonresidents of Connecticut are $25,000. On their federal Form 1040, Line 7, (and on Line 1, Column A, of their Schedule CT-1040AW), Luke and Leslie entered $70,000. Luke and Leslie enter on the Schedule 2 Worksheet, $45,000 in Column I, Line 1, and $20,000 in Column II, Line 1. Luke and Leslie also enter $20,000 on Form CT-1040NR/PY, Schedule 2, Line 55.

Example 3: Linda, a part-year resident, is a sole proprietor of a business conducted at two locations, one in Connecticut and one in Massachusetts. All of Linda's income was earned while she was a Connecticut resident. On Linda's federal Form 1040, Line 12, 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 of expenses reported on her Schedule C, $35,000 is derived from the Massachusetts location. When completing Schedule 2 Worksheet, Linda enters $100,000 in Column I, Line 5, and $55,000 ($90,000 - $35,000), in Column II, Line 5. Linda also enters $55,000 on Form CT-1040NR/PY, Schedule 2, Line 55.

Schedule 2 - Line Instructions

Line 53: Connecticut Adjusted Gross Income Duringthe Residency Portion of the Taxable Year

The amount from Schedule CT-1040AW, Part-Year Resident Income Allocation, Line 30, Column B, is entered on Line 53 with the following exceptions:

Add to the amount on Line 30, Column B, any net loss during the residency portion of your taxable year 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)).
For the residency portion of your taxable year, add back any item of loss or deduction and subtract any item of income or gain included in Schedule CT-1040AW, Column B, as an item of special accrual.

Example: Claudia's Connecticut adjusted gross income for the residency portion of her taxable year is $60,000 which 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. She must add the $20,000 net loss to the $60,000 and enter $80,000 on Line 53.

Line 54: Taxing Jurisdiction(s)

If you claim credit for income taxes paid to a qualifying jurisdiction, enter the name and the two-letter code of each qualifying jurisdiction for which you are claiming credit. If you are claiming credit for income taxes paid to a political subdivision of another state, enter the name and the two-letter code of the state. The codes are listed in the following table.

Standard Two-Letter Codes
Alabama ....................AL ; Louisiana ..................LA ; Ohio ........................OH
Arizona ......................AZ ; Maine ......................ME ; Oklahoma ...............OK
Arkansas ...................AR ; Maryland .................MD ; Oregon ...................OR
California ...................CA ; Massachusetts .........MA ; Pennsylvania ...........PA
Colorado ...................CO ; Michigan .................MI ; Rhode Island ............RI
Delaware ...................DE ; Minnesota ...............MN ; South Carolina ........SC
District of Columbia ...DC ; Mississippi ..............MS ; Tennessee................TN
Georgia .....................GA ; Missouri ..................MO ; Utah .......................UT
Hawaii .......................HI ; Montana ...................MT ; Vermont .................VT
Idaho .........................ID ; Nebraska .................NE ; Virginia ...................VA
Illinois ........................IL ; New Jersey ...............NJ ; West Virginia ..........WV
Indiana ......................IN ; New Mexico ............NM ; Wisconsin ...............WI
Iowa .........................IA ; New York ................NY
Kansas .....................KS ; North Carolina .........NC
Kentucky .................KY; North Dakota ...........ND

Line 55: Non-Connecticut Income

Complete Schedule 2 Worksheet on Page 26 to determine the total of non-Connecticut income included in your Connecticut adjusted gross income for the residency portion of your taxable year and reported on a qualifying jurisdiction's income tax return. To the amount on Schedule 2 Worksheet, Line 30, Column II, add back any item of loss or deduction and subtract any item of income or gain included in Column II as an item of special accrual. Enter the result on Line 55.

Line 56

Divide the amount on Line 55 by the amount on Line 53. The result cannot exceed 1.0000. Round to four decimal places.

Line 57: Apportioned Income Tax

To determine the portion of your 2008 Connecticut income tax attributable to income earned during the residency portion of your taxable year:

Divide the amount on the Schedule 2 Worksheet, Line 30, Column I, by the amount on Form CT-1040NR/PY, Line 6. Round to four decimal places. The result may not exceed 1.0000.
Multiply the result by the amount on Form CT-1040NR/PY, Line 10, and enter on Line 57.

Line 58

Multiply the percentage arrived at on Line 56 by the amount reported on Line 57.

Line 59: Income Tax Paid to a Qualifying JurisdictionWhile a Resident

Enter the total amount of income tax paid to a qualifying jurisdiction on income derived from or connected with sources in that jurisdiction during the residency portion of your taxable year.

If the tax you paid to that jurisdiction was also based on income earned during the nonresidency portion of your taxable year, you must prorate the amount of tax for which you are claiming credit. The proration is based upon the relationship that the income earned in that jurisdiction during your Connecticut residency (from Schedule 2 Worksheet, Line 30, Column II) bears to the total amount of income you earned in that jurisdiction in the taxable year.

Example: George, a part-year resident, worked in RhodeIsland all year and paid $1,200 in Rhode Island tax. His total Rhode Island wages were $20,000 of which $15,000 was earned while he was a Connecticut resident. The income tax paid to Rhode Island during the residency portion of his taxable year is:

$ 15,000/ $ 20,000 X $1,200 = $900

He should enter $900 on Line 59.

Income tax paid means the lesser of your income tax liability to the qualifying jurisdiction or the income tax paid to that jurisdiction as reported on a return filed with that jurisdiction, but not any penalty or interest. Do not report the amount of tax withheld for that jurisdiction directly from your W-2 or 1099 form. You must first complete a return for the qualifying jurisdiction to determine the amount of income tax paid.

Line 60

Enter the lesser of the amounts reported on Line 58 or Line 59.

Line 61: Total Credit for Income Taxes Paid to Qualifying Jurisdictions

Add the amounts from Line 60A, Line 60B, and Line 60 of any additional worksheets. The amount on Line 61 cannot exceed the amount on Line 58. Enter the total on Line 61.

Attach a copy of the income tax return fi led with each qualifying jurisdiction to your Connecticut income tax return or the credit will be disallowed.

Example: Louise, a part-year resident whose fi ling status is single, changed her permanent legal residence during the taxable year by moving from Connecticut to City Y in State X. She worked in City Y during the entire taxable year. Both State X and City Y impose an income tax. Louise's Connecticut adjusted gross income is $75,000 (Form CT-1040NR/PY, Line 5). Louise's income from Connecticut sources (Form CT-1040NR/PY, Line 6) and her Connecticut adjusted gross income during her Connecticut residency period (Schedule CT-1040AW, Column B, Line 30) is $50,000. Louise completes Schedule CT-1040AW as follows: Line 1: Column A, $73,000; Column B, $49,000; Column C, $24,000; and Column D, $0. Line 2: Column A, $2,000; Column B, $1,000; Column C, $1,000; and Column D, $0. Louise uses the amounts in Column B when completing Schedule 2 Worksheet, Column I. Louise's Connecticut income tax before the credit for income taxes paid to other jurisdictions is $2,367 (Form CT-1040NR/PY, Line 10). Since the amount of income taxed by both State X and City Y are equal, Louise uses only one column on Form CT-1040NR/PY, Schedule 2. Louise enters $49,000 (the common amount of income taxed in both State X and City Y during her residency period) on Line 55, Column A.

Louise pays an income tax of $6,100 to State X; however, only $4,039 (($49,000/$74,000) x $6,100) of that amount is attributable to her income sourced to State X during her Connecticut residency period. Louise pays an income tax of $510 to City Y; however, only $338 (($49,000/$74,000) x $510) is attributable to her income sourced to City Y during her Connecticut residency period. Therefore, the total tax paid to State X and City Y on the common amount of income is $4,377 ($4,039 + $338). When completing Form CT-1040NR/PY, Schedule 2, Louise enters $50,000 on Line 53 and completes Schedule 2 as follows:

	Column A	Column B
Line 54	State X, City Y	00
Line 55	49,000 \| 00	00
Line 56	.9800
Line 57	2,367 \| 00	00
Line 58	2,320 \| 00	00
Line 59	4,377 \| 00	00
Line 60	2,320 \| 00	00
Line 61	Total Credit	2,320 \| 00

Connecticut Tax Help Links

2007 Filing Status Option	2008 Filing Status Option
Single	Single
Head of household	Head of household
Qualifying widow(er) with dependent child	Qualifying widow(er) with dependent child
Married filing jointly	Filing jointly for federal and Connecticut
Married filing separately	Filing separately for federal and Connecticut
Civil union filing jointly	Filing jointly for Connecticut only
Civil union filing separately	Filing separately for Connecticut only