Return and Instructions - Connecticut

1 ConnecticutNonresident andPart-Year ResidentIncome TaxReturn and InstructionsTax information isavailable on the DRSwebsite Department of Revenue Services (DRS) tax information is listed on the back booklet contains: Form CT-1040NR/PY Schedule CT-SI Schedule CT-1040AW Schedule CT-CHET Tax Tables Tax CalculationSchedule Use Tax Information IndexFile early to protect your refund from identity ofevenueervicesImportant 2014 ConnecticutIncome Tax Topics:File ElectronicallyFile electronically .. it is fast and free! Visit to electronically fi le. See Taxpayer Service Center, on Page OptionsDirect DepositChoose direct deposit for the fastest way to receive your Connecticut income tax deposit is not available for fi rst time Connecticut fi CardIf you are not eligible for or do not have a bank account to direct deposit your refund to, you can elect to receive the refund as a debit CheckIf you do not elect to direct deposit or to receive your refund as a debit card, the refund will be issued by paper check.

2 Processing a paper check may increase the time it takes for you to receive your Direct Deposit, Debit Cards, or Paper Check, on Page Higher Education Trust (CHET)Elect to contribute to an existing CHET College Savings Plan Account(s) using Schedule CT-CHET, Connecticut Higher Education Trust (CHET) 529 College Savings Plan Contribution. See What s New, Page to the CHET Baby Scholars fund, which provides contributions of up to $250 to CHET college savings accounts opened for children under age one or newly adopted. See What s New, Page 2 Connecticut Organ Donor (t) Give the gift of hope by registering to become an organ and tissue donor. Information about organ donation and various organ donor programs is available from the following fastest way to get your refund is to fi le your Return electronically and elect direct deposit.

3 Join the 817,392 taxpayers who chose direct deposit in 2013 because: the money goes directly into your bank account; it eliminates the possibility of the refund being lost, stolen or returned as undeliverable; and it saves tax dollars by costing the government less. Make your direct deposit successful by: Confi rming your account number and routing number with your fi nancial institution and entering them clearly on your tax Return ; Entering the direct deposit information separately for both your federal and state electronically fi led returns; and Printing your software-prepared paper Return only after you have entered the direct deposit information into the fi nancial institutions do not allow a joint refund to be deposited into an individual an effort to reduce fraud, DRS is changing its income tax refund policy for fi rst-time Connecticut income tax fi lers.

4 Direct deposit will no longer be an option to fi rst-time fi OPTIONS Direct DepositDonate Life Connecticut Marrow Donor Network for Organ Sharing (UNOS) Donor England Organ If you do not elect to direct deposit or do not have a bank account, you may elect to receive the refund as a debit card. Complete Line 27e to request that DRS issue your refund by debit card. Debit cards provide taxpayers with immediate access to their funds through: Free teller assisted cash withdrawals at any VISA member bank or credit union; Free cash withdrawals at Chase or People s ATMs; Three free cash withdrawals at other ATMs (Surcharges will apply at any ATMs other than Chase and People s); Unlimited free transactions at retail locations and online businesses across the United States that accept Visa; and Free transfers to any checking or savings fi lers will receive two debit cards drawn from the same account (similar to a joint bank account).

5 Each card may be used to make transactions, but the combined transactions cannot exceed the credit balance in the debit card account. Both cards must be activated prior to use. For more information on DRS tax refund debit cards, visit , select For Individuals and select Debit Card FAQs. Debit CardsDebit CardFAQ WebsiteIf you do not elect to direct deposit or to receive your refund as a debit card, a refund check will be issued, and refund processing may be recommends that taxpayers, who are not fi rst-time Connecticut income tax fi lers, choose direct deposit .. the most reliable and fastest way to receive your refund. Paper CheckPage 3 What s New Connecticut Higher Education Trust (CHET) 529 College Savings Plan and CHET Baby Scholars FundEff ective July 1, 2014, any taxpayer fi ling an income tax Return may contribute any part of his or her income tax overpayment to an existing CHET 529 college savings plan or to the CHET Baby Scholars Schedule CT-CHET, Connecticut Higher Education Trust (CHET) 529 College Savings Plan Contribution, to contribute all or part of your Connecticut individual income tax overpayment (Form CT-1040NR/PY, Line 24) to a CHET 529 College Savings Plan Account(s).

6 Th e contribution must be made into an existing CHET 529 College Savings e Offi ce of the State Treasurer CHET Baby Scholars fund will deposit $100 into a CHET account for children born or adopted on or aft er January 1, 2014. A second deposit of $150 will be made if family and friends add at least $150 to the child s enrolled CHET account within four years. Th e deadline to participate is 12 months aft er the child s birth or e incentive contributions are broken down into two payments: 1. A $100 payment, as long as a depositor enters into a participation agreement no later than the fi rst birthday of the designated benefi ciary, or, if the benefi ciary is adopted, no later than one year aft er the date the designated benefi ciary is legally adopted (date of adoption); and2.

7 A $150 payment, as long as the designated benefi ciary s savings plan has received deposits totaling at least $150, exclusive of the $100 initial incentive contribution, no later than the designated benefi ciary s fourth birthday, or, if the benefi ciary is adopted, no later than four years aft er the date of invested in CHET will not be considered an asset for purposes of determining an individual s eligibility for the following: Assistance under the temporary family assistance program; Programs funded under the federal Low Income Home Energy Assistance Program block grant; Th e federally appropriated weatherization assistance program; or Need-based, institutional aid grants off ered to an individual at the public eligible educational institutions in the Reinvestment Account (MRA)For taxable years beginning on or aft er January 1, 2014, 100% of any distributions from an MRA used for eligible purposes are exempt from personal income tax.

8 Th e entire amount of any distributions from an MRA not used for eligible purposes and the entire amount of any money returned from such account remains subject to income of Debt IncomeIf you added Cancellation of Debt Income to your federal adjusted gross income on either your 2009 or 2010 Form CT-1040, Line 33 or Form CT-1040 NR/PY, Line 35 because you elected to defer reporting your Cancellation of Debt Income on your federal income tax Return until the 2014 taxable year, you may subtract 20% of that Cancellation of Debt Income amount on Schedule 1, Line 51. You may subtract 20% of that Cancellation of Debt Income amount on the comparable line of your Connecticut income tax Return for the 2015, 2016, 2017, and 2018 taxable of Nonresident Business IncomeA business, trade, profession, or occupation carried on in Connecticut and outside Connecticut , must determine the items of income, gain, loss, and deduction derived from or connected with Connecticut sources by using an apportionment e gross income factor of the apportionment formula is computed by dividing the gross receipts from sales of property or services earned within Connecticut by the total gross receipts from sales of property or services.

9 Whether earned within or outside taxable years beginning on or aft er January 1, 2014, the gross receipts from sales of property are considered to be earned within Connecticut when the property is delivered to or shipped to a purchaser within Connecticut , regardless of the point or other conditions of or Disposition of an Interest in an Entity that Owns Property in ConnecticutFor taxable years beginning on or aft er January 1, 2014, in determining the income, gain, loss, and deduction derived from or connected with Connecticut sources, a nonresident individual must include certain gains and losses from the sale or disposition of an interest in an entity that owns real property in Connecticut .

10 Th e term entity means a partnership, limited liability company, or S or a portion of the gain or loss from a nonresident individual s sale or disposition of an interest in an entity is considered to be derived from Connecticut sources if the entity owns real property in Connecticut that has a fair market value that equals or exceeds 50% of all the assets of the entity on the date of sale or disposition of the nonresident individual s interest. In determining the fair market value of the entity s assets on the date of sale, only the assets that the entity owned for at least two years prior to the date of sale or disposition of the nonresident individual s interest in the entity are used.