Connecticut Schedule Ct-Eitc Instructions

Who qualies?

To qualify for the Connecticut earned income tax credit (CT EITC) you must:

1. Have claimed and been allowed the 2013 federal earned income credit (EIC); and
2. Be a full-year resident of the State of Connecticut.

Part-year residents and nonresidents do not qualify for the CT EITC and must file Form CT-1040NR/PY.

How to Claim the Connecticut Earned Income Tax Credit

Complete Schedule CT-EITC, Connecticut Earned Income Tax Credit, using the information from your federal return, worksheets, and, if applicable, federal EIC line instructions. Attach Schedule CT-EITC to the back of Form CT-1040.

Protect Yourself

DRS wants to make it easy for qualified residents to receive their CT EITC, but also reminds taxpayers to take steps to prevent identity theft. Taxpayers need to protect Social Security Numbers and other taxpayer identity information to prevent others from improperly claiming the credit.

Do not let others prepare your Schedule CT-EITC with false information to get more money back for themselves. Avoid predatory tax preparers who charge high fees or claim they can get you a larger tax refund for a percentage of the refund. These activities are crimes and should be reported to DRS.

Eligibility Reviews

DRS reviews CT EITC requests to determine if taxpayers qualify for the CT EITC. Approval of the federal earned income tax credit does not guarantee eligibility for the CT EITC. DRS may request additional information to determine if a credit claim is valid. You must keep accurate records to support all items reported on Schedule CT-EITC.

See Informational Publication 2012(9.1), Recordkeeping Suggestions for Self-Employed Persons, or visit the DRS CT EITC website at www.ct.gov/drs/eitc .

Schedule CT-EITC - Line instructions

Line 1

You must have claimed the 2013 federal earned income credit to claim the CT EITC.

Line 2

You cannot claim the CT EITC if your investment income is more than $3,300. Investment income is the total amount of:

• Taxable interest (federal Form 1040 or 1040A, Line 8a);
• Tax-exempt interest (federal Form 1040 or 1040A, Line 8b);
• Ordinary dividends income (federal Form 1040 or 1040A, Line 9a); and
• Capital gain net income from federal Form 1040A, Line 10, or Form 1040, Line 13 (if more than zero).

For additional information on what qualifies as investment income, see federal Publication 596, Earned Income Credit.

Line 3

File Schedule CT-EITC with Form CT-1040. If Form CT-1040 was already filed, you must file a 2013 Form CT-1040X to claim the credit.

Schedule CT-EITC cannot be filed by itself. Schedule CT-EITC must be attached to a completed Form CT-1040 or Form CT-1040X.

Line 4

If claiming qualifying children on federal Schedule EIC, mark an X in the Yes box and then complete Line 5. Otherwise, mark an X in the No box and go to Line 6.

Line 5

If claiming qualifying children on federal Schedule EIC, list the same children (up to three) in the spaces provided. If claiming more than three qualifying children on federal Schedule EIC, enter the required information for three qualifying children in the spaces provided on the schedule and attach a statement with the required identifying information for each additional child. Include taxpayer name and social security number (SSN) on the attachment.

To be eligible to claim the CT EITC, a correct and valid SSN must be provided for each child listed on Line 5, and on an attached statement, if any.

If a social security number has been applied for by filing federal Form SS-5 with the Social Security Administration, but has not been received by the return due date:

1. File Form CT-1040 EXT, to request an extension of time to file. Form CT-1040 EXT does not extend the time to pay your income tax. You must pay the amount of tax that you expect to owe on or before the original due date of the return (see Form CT-1040 EXT); or
2. File Form CT-1040 on time without claiming the CT EITC (do not attach Schedule CT-EITC). After receiving the SSN, amend the Connecticut return using Form CT-1040X and attach the completed Schedule CT-EITC. Mark an X in the box confirming each child who was identified on federal Schedule EIC, box 4a, as a full-time student.

Mark an X in the box confirming each child who was identified on federal Schedule EIC, box 4b as disabled.

Line 6

If no Connecticut withholding is claimed on Form CT-1040, Line 18, and Wages, tips, and other compensation was reported on forms W-2 or 1099, mark an X in the Yes box and enter the following information (from up to three jobs) on Lines 6a, 6b, and 6c. Otherwise, mark an X in the No box and go to Line 7.

Column A - Enter the employer's federal identification number (EIN) from form W-2 or the payer's federal identification number from form 1099.

Column B - Enter the employer's state identification number from form W-2 or form 1099.

Column C - Enter wages, tips, and other compensation from form W-2 or form 1099.

Line 7

Business income or loss applies only to federal Form 1040 filers. If income or loss from more than one business is claimed, mark an X in the Yes box and enter the following information (for up to three primary business activities) on Lines 7a, 7b, and 7c. Otherwise, mark an X in the No box and go to Line 8.

Column A - Enter the federal employer identification number (EIN) for the business. If any primary business activity does not have an EIN, enter your SSN.

Column B - Enter the Connecticut tax registration number for the business.

Column C - Enter the amount of business income or loss. Use a minus sign to show a loss or a negative amount.

Line 8

Enter the federal EIC claimed for tax year 2013 from federal Form 1040, Line 64a; Form 1040A, Line 38a; or Form 1040EZ, Line 8a.

Line 9

For the tax year 2013, the CT EITC is 25% (.25) of the federal EIC.

Line 11

If your filing status was married filing jointly on your federal income tax return but you are required to file as married filing separately on your Connecticut Form CT-1040, mark an X in the Yes box and complete Lines 12 through 15. See Taxpayer Information, on Page 18.

Otherwise, mark an X in the No box and skip Lines 12 through 15.

Line 16

This is your Connecticut Earned Income Tax Credit. If your filing status is married filing separately, enter the amount from Line 15. Otherwise, enter the amount from Line 10. Enter the amount from Line 16 on Form CT-1040, Line 20a.