Instructions For Form Ct-1040 - Connecticut Resident Income Tax - 2011 Page 4
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52Phase-Out of the 3% Rate
On or after January 1, 2012, the Connecticut Lottery Corporation
will check the name of any person who submits a lottery claim
For taxable years beginning on or after January 1, 2011, the
of $5,000 or more against the delinquent taxpayer list provided
amount to which the 3% rate applies is reduced depending on
by DRS. If there is a match, the Connecticut Lottery Corporation
the individual’s fi ling status and Connecticut AGI thresholds
will deduct and withhold from the lottery prize payment payable
as follows:
to that person the amount of the tax liability specifi ed on the
Single
delinquent taxpayer list.
The amount to which the 3% tax rate applies is reduced by $1,000
for each $5,000 (or part of $5,000) by which the taxpayer’s
Additional Residence Information Required on
Connecticut AGI exceeds $56,500.
Form CT-1040
A taxpayer is required to enter the city or town of residence and
Filing separately
zip code if it is different from his or her mailing address.
The amount to which the 3% tax rate applies is reduced by $1,000
for each $2,500 (or part of $2,500) by which the taxpayer’s
Use Tax
Connecticut AGI exceeds $50,250.
Use tax is due when taxable purchases are made but Connecticut
Head of household
sales tax is not paid. The general use tax rate for purchases made
The amount to which the 3% tax rate applies is reduced by $1,600
on or before June 30, 2011, is 6%. For purchases made on or
for each $4,000 (or part of $4,000) by which the taxpayer’s
after July 1, 2011, the general use tax rate is 6.35%. However,
Connecticut AGI exceeds $78,500.
the following items are subject to a 7% use tax rate: Most motor
vehicles exceeding $50,000; a vessel exceeding $100,000; each
Filing jointly or qualifying widow(er)
piece of jewelry exceeding $5,000; each piece of clothing or pair
The amount to which the 3% tax rate applies is reduced by $2,000
of footwear exceeding $1,000; a handbag, luggage, umbrella,
for each $5,000 (or part of $5,000) by which the taxpayer’s
wallet, or watch exceeding $1,000. See Schedule 4 - Individual
Connecticut AGI exceeds $100,500.
Use Tax on Page 31; Q&A About the Connecticut Individual
The amount not taxed at the 3% rate is taxed at the 5% rate.
Use Tax, on Page 5; and Informational Publication 2011(15),
Q&A on the Connecticut Individual Use Tax.
Tax Recapture for Taxpayers with Higher Adjusted
Gross Income
Interest on Underpayment of Estimated Income
For taxable years beginning on or after January 1, 2011, a
Tax for 2011
taxpayer whose Connecticut adjusted gross income (AGI)
For 2011, DRS recognizes that despite good faith efforts there
exceeds the income thresholds specifi ed below, in addition to
may be situations where taxpayers will be under withheld due to
computing his or her Connecticut income tax liability using the
2011 legislative changes affecting the Connecticut income tax.
applicable tax rates, and in addition to applying the 3% phase-
Employers and taxpayers who fi nd themselves under withheld
out provision, is required to add to the tax otherwise computed,
because of the temporary “catch-up” withholding requirements
the following recapture amount of tax as follows.
will not be held liable for any associated interest and/or penalty
on underpayment of estimated income tax for 2011.
Single or fi ling separately
$75 for each $5,000 (or part of $5,000) by which the taxpayer’s
2012 Income Tax Withholding
Connecticut AGI exceeds $200,000. The maximum recapture
For Taxable Year 2012: If you made changes to your
amount is $2,250.
withholding in 2011, please be advised that your employer will
Head of household
continue to withhold the amount of Connecticut income tax that
$120 for each $8,000 (or part of $8,000) by which the taxpayer’s
you requested unless you provide your employer with a new
Connecticut AGI exceeds $320,000. The maximum recapture
Form CT-W4, Employee’s Withholding Certifi cate.
amount is $3,600.
Therefore, as the “catch-up” withholding requirements for 2011
do not apply in 2012, employees who changed their withholding
Filing jointly or qualifying widow(er)
must check with their respective payroll offi ces or departments
$150 for each $10,000 (or part of $10,000) by which the
to determine the date by which they must submit a new Form
taxpayer’s Connecticut AGI exceeds $400,000. The maximum
CT-W4 in order for said form to be effective by January 1, 2012.
recapture amount is $4,500.
Angel Investor Tax Credit
Connecticut Lottery Winners who are Delinquent
Taxpayers
Effective October 27, 2011, the minimum cash investment
required to qualify for the angel investor tax credit was
DRS is required to provide to the Connecticut Lottery
Corporation a list of delinquent taxpayers who have an unpaid
reduced from $100,000 to $25,000. See Angel Investor
tax liability, including penalties and interest, more than 30 days
Tax Credit, on Page 16. (Connecticut Public Act 11-1,
old, from the date on which the taxes were due, that is not the
§29, October Special Session, amended Conn. Gen. Stat.
subject of a timely administrative appeal to DRS or a timely-fi led
§12-704d(b))
appeal pending before any court.
Page 4
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