CONNECTICUT
separate property state

 

Military Income:   Fully taxable, unless they meet exemption qualifications below. 

If the above situation exists and the member has had state tax withheld from their pay, they can file as a nonresident and get a refund.

Military Filing Requirement:  No, if no tax withheld a return does not have to be filed to maintain residency.

Military Spouse Residency Relief Act:  Service member in state in compliance with military orders. Spouse in state solely to be with service member. Spouse must be a resident of same state as service member. Exempted income is limited to wages, salaries and other compensation as an employee, and small business earnings where the military spouse is a sole proprietor or single member of a LLC.

Forms Used:

Filing Status:  If only one spouse is a nonresident or a part-year resident, a separate return MUST be filed. 

Attach Copy of Federal Return:   No

Not Taxed:   Social Security (See state instructions if software does not automatically compute.) 50% of miltary retirement pay. Adjustment is made on CT 1040 line 45 orf CT NRPY line 47.

Other State Tax Credit:   Available for residents and part year residents.  Must attach a copy of other state return if not e-filing.

 

Where to Mail:
Residents:
Refunds and No Tax Due: Tax Due:
CT Dept of Revenue Services
PO Box 2976
Hartford, CT  06104-2976
CT Dept of Revenue Services
PO Box 2977
Hartford, CT  06104-2977
Part-Year and Nonresidents:
Refunds and No Tax Due: Tax Due:
CT Dept of Revenue Services
PO Box 2968
Hartford, CT  06104-2968
CT Dept of Revenue Services
PO Box 2969
Hartford, CT  06104-2969
Forms:  (860) 297-4753 E-File Help Desk:  (860) 297-5979
Other  Info: Website:  http://www.ct.gov/drs/cwp/view.asp?a=1450&q=510992
Taxpayer Services Division
Dept of Revenue Services
25 Sigourney St
Hartford, CT  06106
(860) 297-5962
E-filing Info:   The following cannot be e-filed: Married Filing Separate returns.
Tax Form Instructions:
Resident Instructions Non-Resident Instructions
  Military Information

 

Filing Status Scenarios

1.  Taxpayer and Spouse Residents (Use also for Single Taxpayer)
2.  Taxpayer and Spouse Different States of Residence
3.  Taxpayer and Spouse Non-Residents
4.  Taxpayer Non-Resident - Spouse Part-Year Resident
5.  Taxpayer Married or Single - Resident but Income from Other State
6.  Amended Return

 

1.  Taxpayer and Spouse Residents (Use also for Single Taxpayer) - Taxpayer and spouse are both Connecticut residents, lived at their present location all year (outside of Connecticut), and one or both had income.

Main Info Screen.  As Connecticut does not tax military income when stationed outside the state, the military members income is not taxable.  Therefore a non-resident Connecticut income tax return will be prepared.  Enter CT in the Nonresident field.  In order to make the red field in Full year resident go away, check the box for not preparing a state return.

Connecticut 1040 NR/PY Form.  A joint nonresident Connecticut income tax return is prepared.

Connecticut Schedule SI - Nonresident or Part-year Resident Schedule of Income is used to subtract out the out-of-state military income.  As Connecticut does not tax military income when stationed outside the state, the military members income is not taxable.  The only way to properly do this for Connecticut is to Link on line 1, Wages, salaries, tips, etc in Part 1: Connecticut Income and add a Scratch Pad.

Scratch Pad - Detail Sheet.  In the Type field enter a description of the income.  In the Amount column enter the military income as a negative number, as we need to subtract it from their income.

Complete all other fields and forms with red or required information.

2.  Taxpayer and Spouse - Different States of Residence - Taxpayer or spouse is a resident of Connecticut, while the other member is a resident of a different state.  A Connecticut income tax must be prepared due to the taxpayer or spouse having Connecticut earned income, while living outside of Connecticut.

Main Info Screen.  For this example, the taxpayer is a resident of Connecticut while the spouse is a resident of North Dakota.  As Connecticut does not tax military income when stationed outside the state, the military members income is not taxable.  Therefore a non-resident Connecticut income tax return will be prepared.  

Resident/Nonresident Worksheet.  Review form to ensure income is split correctly for the appropriate states.

Connecticut Form 1040 NR/PY.  If one spouse is a nonresident, a separate return MUST be filed.  A Connecticut Form 1040 will be automatically prepared.  Check the appropriate box to indicate whether the taxpayer or the spouse is the resident in order to file a married filing separate tax return.

Connecticut Schedule SI - Nonresident or Part-year Resident Schedule of Income is used to subtract out the out of state military income.  As Connecticut does not tax military income when stationed outside the state, the military members income is not taxable.  The only way to properly do this for Connecticut is to link on line 1, Wages, salaries, tips, etc in Part 1: Connecticut Income and add a Scratch Pad.

Scratch Pad - Detail Sheet.  In the Type field enter a description of the income.  In the Amount column enter the military income as a negative number, as we need to subtract it from their income..

Complete all other fields and forms with red or required information.

3.  Taxpayer and Spouse Non-Residents - Taxpayer and spouse are residents of a different state.  The spouse and taxpayer must file a Connecticut tax return due to one or both having Connecticut earned income.

Main Info Screen.  For this example, the taxpayer and spouse are both residents of Wisconsin but must file a Connecticut income tax return because the spouse worked in Connecticut.

Resident/Nonresident Worksheet.  Review form to ensure income is split correctly for the appropriate states.

Connecticut Form 1040 NR/PY.  If both spouses are not residents of Connecticut, they can file jointly.

Review the remainder of the Connecticut Form 1040 NR/PY to ensure the other state income is being subtracted correctly.

4.  Taxpayer Non-Resident - Spouse Part-Year Resident - Taxpayer and spouse moved to or from Connecticut during the tax year.  The taxpayer is a resident of a different state.  The Spouse is a part-year resident of Connecticut.  The Spouse and taxpayer must file a Connecticut tax return due to one or both of them having Connecticut earned income and possibly income from another state.

Main Info Screen. For this example, the taxpayer is in the military and a resident of Indiana.  The taxpayer and spouse moved from Connecticut to North Dakota during the year.  The spouse was a resident of Connecticut but now wishes to become a resident of North Dakota for tax purposes.  The spouse therefore was a part-year resident of both Connecticut and North Dakota and must file a Connecticut income tax return because the spouse worked in Connecticut.

Part Year Resident States Worksheet.  Review form to ensure income is split correctly for the appropriate states.

Connecticut Form 1040 NR/PY.  This form will be generated for a Connecticut part-year resident who must report Connecticut earned income. We must use the Married filing separate - Spouse block as we have one resident and one nonresident.

Connecticut Form 1040AW - Part-year Resident Income Allocation.  Part 3 of this form must be prepared to explain the part-year residency information.

Review the remainder of the Connecticut Form 1040 NR/PY to ensure the other state income is being subtracted correctly.  Complete all other fields and forms with red or required information.

5.  Married or Single Military Resident of Connecticut with Income from Another State  - Taxpayer is single.  The taxpayer must file a Connecticut tax return due to him or her having Connecticut earned income.
Main Info Screen.   As Connecticut does not tax military income when stationed outside the state, the military members income is not taxable.  Therefore a non-resident Connecticut income tax return will be prepared.  There will be no resident state income tax return that is filed for this scenario. Enter CT in the Nonresident field.  In order to make the red field in "Full year resident" go away, check the box for not preparing a state return.  For this example the taxpayer had a job in North Dakota therefore having North Dakota earned income that is also being taxed by Connecticut. 

Resident/Nonresident Worksheet.  Review form to ensure income is split correctly for the appropriate states.

Connecticut 1040 NR/PY Form.  A single nonresident Connecticut income tax return is prepared.  As this is a nonresident return due to the taxpayer's military status his military pay will not be taxed and Connecticut will allow a credit on the tax paid to North Dakota.. 

Connecticut Schedule SI - Nonresident or Part-year Resident Schedule of Income is used to subtract out the out of state military income.  As Connecticut does not tax military income when stationed outside the state, the military members income is not taxable.  The only way to properly do this for Connecticut is to press F9/Link on line 1, Wages, salaries, tips, etc in Part 1: Connecticut Income and add a Scratch Pad.

Scratch Pad - Detail Sheet.  In the Type field enter a description of the income.  In the Amount column enter the military income as a negative number, as we need to subtract it from their income.

Connecticut Form 1040 NR/PY Page 3, Schedule 2 - Credit for Income Taxes Paid to Qualifying Jurisdictions - Part-Year Residents.  This form is used to allow a credit for the tax paid to North Dakota

Complete all other fields and forms with red or required information.

6.  Amended Return  - An amended Connecticut return must be filed because the taxpayer received new tax information after their Connecticut return was filed.
Federal 1040X Form.  Before making any changes to the tax return add the US 1040X form to the tax return.  You must check the box under Income and Deductions to lock in the entries in Column A - Original amount or as previously adjusted.

Connecticut 1040X - Amended Individual Income Tax Return.  Add the Connecticut 1040X Form to the return.  Answer the questions as in the example.   You must check the box to lock in the entries in Column A - Original amount or as previously adjusted, before making any changes to the return.

Make whatever changes are required to the federal tax return.  For this example, a new W-2 was received.

Connecticut 1040X - Amended Individual Income Tax Return.  Return to the Connecticut 1040X form to determine if the taxpayer is receiving an additional refund or owes money.  

Connecticut 1040X - Amended Individual Income Tax Return, Page 2.  Enter reason for amended tax return.

Amended returns can not be e-filed.  The taxpayer must mail the federal 1040X and any state amended returns if required to be filed.