Connecticut 2017 Resident FORM Income Tax CT …

1 Connecticut 2017 Resident FORM Income Tax CT-1040 Return Instructions This booklet Important 2017 Connecticut contains information Income Tax Topics: and instructions for the following forms and File Electronically schedules: File electronically .. it is secure, fast and free! Visit to electronically file. Form CT-1040 See Taxpayer Service Center, on Page 53. Schedule CT-EITC. Refund Options Schedule CT-CHET Direct Deposit Tax Tables Choose direct deposit for the fastest way to receive your Connecticut Income tax refund. Direct deposit is not available for first time Tax Calculation Connecticut filers.

2 Schedule See Refund Options, Direct Deposit, on Page 4. Paper Check Use Tax If you do not elect or qualify for direct deposit, your refund will be Information issued by paper check. Processing a paper check may increase the time it takes for you to receive your refund. DRS. epartment of evenue ervices Connecticut Earned Income Tax Credit Full-year residents may be eligible to claim the Connecticut earned Income tax credit (CT EITC). See CT EITC on Page 6. Protecting Taxpayer Information and Refunds Security of taxpayer information and financial transactions is a top priority for DRS to better protect your personal information and assure that refunds are delivered to their rightful owners.

3 See Protecting Taxpayer Security, on Page 16. File early to protect your refund from identity thieves. Taxes are the way we all contribute to an even better Connecticut . Thank you for doing your part! . Commissioner Kevin B. Sullivan What's New property Tax Credit Limitation Penalty Waiver Requests For taxable year 2017, in order to qualify for the property There is a one year statute of limitations imposed on tax credit, you, or your spouse if married filing jointly, penalty waiver requests received on or after July 1, 2017.

4 Must be 65 years of age or older by the end of the taxable The Commissioner cannot consider a request received year, or you must have claimed at least one dependent on more than one year from the date a notice of such penalty your federal Income tax return. The maximum Income tax was first sent to the taxpayer requesting the waiver. For credit for taxes paid to Connecticut municipalities remains the taxpayer who self reports the penalty on his or her tax at $200. The phase out thresholds for all filing statuses return, the filing date of such return is considered the date remain at the 2016 levels.

5 On which the taxpayer was notified of such penalty. See Earned Income Tax Credit Policy Statement 2017(6), Requests for Waiver of Civil Penalties. The earned Income tax credit in effect for Connecticut residents for 2017 is 23 percent (23%) of the federal Earned Paid Preparers Income Credit claimed and allowed on your federal Income If you are a paid tax preparer preparing any Connecticut tax return. personal Income tax return(s), you are required to sign the return(s) and include your Preparer Tax Identification Income Tax Exemption for Teacher Number (PTIN) issued by the Internal Revenue Service.

6 Pensions You are no longer allowed to use your Social Security Effective for taxable years beginning in January 1, 2017, and Number. You must use your PTIN. January 1, 2018, in determining a taxpayer's Connecticut If your PTIN is not used, a civil penalty of $500 may be Adjusted Gross Income (AGI), a taxpayer is allowed a imposed. See Special Notice 2017(8), New Requirements subtraction modification of 25% of the Income received for Income Tax Preparers and Facilitators of Refund from the Connecticut teacher's retirement system.

7 Anticipation Loans or Checks. This modification applies to the extent such Income is properly included in the taxpayer's federal AGI for the New Designated Charity taxable year. The Mental Health Community Investment Account, was added on Form CT-1040, Schedule 5, Contributions to Designated Charities. You may contribute all or a portion of your refund to this charity on Line 70h. Timely Filed Returns April 17, 2018. The 2017 Connecticut Income tax return (and payments) will be considered timely if filed on Tuesday, April 17, 2018.

8 In 2018, the due date for filing a Connecticut Income tax return (April 15) falls on a Sunday. The next business day is Monday, April 16, which is a legal holiday in the District of Columbia (Emancipation Day). Therefore, for filing purposes the next business day is Tuesday, April 17, 2018. Page 2. Angel Investor Tax Credit Single Sales Factor Apportionment and The Form CT-AIT, Angel Investor Tax Credit is now Market-Based Sourcing obsolete. You must use Schedule CT-IT Credit to calculate For taxable years beginning on or after January 1, 2017, the amount of the Angel Investor Tax Credit you can a business, trade, profession, or occupation carried on in claim on your return.

9 If you are claiming the Angel Connecticut and outside of Connecticut must apportion Investor Tax Credit, you must complete Part III of the Schedule CT-IT Credit. its Income using a single factor gross Income percentage. These multistate businesses are required to utilize market- Crumbling Foundations Subtraction based sourcing for purposes of determining their gross Modification Income percentage. Effective for taxable years beginning on or after January 1, 2017, Businesses must source receipts from the sales of services in determining a taxpayer's Connecticut AGI, a taxpayer and intangible property on a market basis.

10 Receipts from is allowed a subtraction modification for the following: the rental, lease, or license of tangible personal property are Amount of any financial assistance received by the sourced according to the location of the property . Receipts taxpayer from the Crumbling Foundations Assistance from the sale of tangible personal property continue to Fund; be sourced based upon the location of the purchaser. Businesses that cannot reasonably determine where their Amounts paid to or on behalf of the taxpayer, as the receipts should be sourced under the statutory rules may owner of a residential building, under the Collapsing petition the Commissioner to use an alternate method that Foundations Credit Enhancements Program; or reasonably approximates such sourcing rules.