Instructions For Form Ct-1040 - Connecticut Resident Income Tax - 2012 Page 23
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52Line 38: Other
9. Also use Line 38 to report any additions to federal
adjusted gross income required for Connecticut income
Use Line 38 to report any of the following modifi cations:
tax purposes which are not listed on Lines 31 through 37.
1. Add back any treaty income reported on federal Form
1040NR-EZ or Form 1040NR if a nonresident alien. Enter
Line 39: Total Additions
the words “treaty income” in the space provided.
Add Lines 31 through 38 and enter the total.
2. Add back any loss or deduction of an enrolled member
Subtractions From Federal Adjusted Gross Income
of the Mashantucket Pequot Tribe who resides in Indian
Enter all amounts as positive numbers.
country of such tribe or any loss or deduction of an
enrolled member of the Mohegan Tribe who resides in
Line 40: Interest on U.S. Government Obligations
Indian country of such tribe where the loss or deduction
Enter the total amount of interest income (to the extent
is derived from or connected with Indian country of
includible in federal adjusted gross income) derived from
the tribe. Enter the words “Mashantucket Pequot Tribe
U.S. government obligations, which federal law prohibits
enrolled member” or “Mohegan Tribe enrolled member,”
states from taxing (for example, U.S. government bonds such
as the case may be.
as Saving Bonds Series EE or Series HH and U.S. Treasury
3. Add back any Connecticut income tax deducted on the
bills or notes).
federal income tax return to arrive at federal adjusted
For Series EE U.S. Savings Bonds, you are entitled to include
gross income. Do not add back any Connecticut income
on Line 40 only the amount of interest subject to federal
tax deducted on federal Form 1040, Schedule A.
income tax after exclusion of the amounts reported on federal
4. Add back any expenses paid or incurred for the production
Form 8815. In general, you will report the net taxable amount
(including management, conservation, and maintenance of
on federal Form 1040, Schedule B, or federal Form 1040A,
property held for the production) or collection of income
Schedule 1.
exempt from Connecticut income tax which were deducted
Do not enter the amount of interest income derived from
on the federal return to arrive at federal adjusted gross income.
Federal National Mortgage Association (Fannie Mae) bonds,
5. Add back any amortizable bond premium on bonds
Government National Mortgage Association (Ginnie Mae)
producing interest income exempt from Connecticut
bonds, and Federal Home Loan Mortgage Corporation
income tax which premiums were deducted on the federal
(Freddie Mac) securities. Federal law does not prohibit states
return to arrive at federal adjusted gross income.
from taxing interest income derived from these obligations
6. Add back any interest or dividend income on obligations or
and this interest income is taxable for Connecticut income
securities of any authority, commission, or instrumentality
tax purposes.
of the United States which federal law exempts from federal
Do not enter the amount of interest paid to you on any federal
income tax but does not exempt from state income taxes.
income tax refund.
7. Add back to the extent deductible in determining
Line 41: Exempt Dividends From Certain
federal adjusted gross income, any interest expenses on
Qualifying Mutual Funds Derived From U.S.
indebtedness incurred or continued to purchase or carry
Government Obligations
obligations or securities (the income from which is exempt
Enter the total amount of exempt dividends received from a
from Connecticut income tax).
qualifying mutual fund that are derived from U.S. government
8. Add back the following distributions from an MRA
obligations. A mutual fund is a qualifying fund if, at the close
established pursuant to Conn. Gen. Stat. §32-9zz:
of each quarter of its taxable year, at least 50% of the value
• 50% of any distribution from such MRA used to
of its assets consists of U.S. government obligations. The
purchase machinery or equipment for use in Connecticut
percentage of dividends that are exempt dividends should be
or manufacturing facilities, as defi ned in Conn. Gen.
reported to you by the mutual fund.
Stat. §12-81(72), or for workforce training, development
Do not enter the amount of dividend income derived from
or expansion in Connecticut;
Federal National Mortgage Association (Fannie Mae) bonds,
• 100% of any distribution from such MRA not used to
Government National Mortgage Association (Ginnie Mae)
purchase machinery or equipment for use in Connecticut
bonds, and Federal Home Loan Mortgage Corporation
or manufacturing facilities, as defi ned in Conn. Gen.
(Freddie Mac) securities. Federal law does not prohibit states
Stat. §12-81(72), or for workforce training, development
from taxing income derived from these obligations, and this
or expansion in Connecticut; and
income is taxable for Connecticut income tax purposes.
• 100% of any return of money remaining in the MRA
at the end of the fi ve-year period after such account’s
Example: A qualifying mutual fund pays a dividend of $100.
creation or organization, including any interest earned.
Of the distribution, 55% is attributable to U.S. Treasury bills and
45% to other investments. The amount reported on Line 41 is $55.
See Special Notice 2012(6), 2012 Legislative Changes
Affecting the Income Tax.
Page 23
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