Instructions For Form Ct-1040 - Connecticut Resident Income Tax - 2012 Page 26
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528. Subtract the amount of any interest, dividends, or capital
Income Derived From or Connected With Sources
Within a Qualifying Jurisdiction
gains earned on contributions to accounts established for
a designated benefi ciary under the Connecticut Homecare
• Compensation received for personal services performed in
Option Program for the Elderly to the extent the interest,
a qualifying jurisdiction;
dividends, or capital gains are properly included in the
• Income from a business, trade, or profession carried on in
gross income of the designated benefi ciary for federal
a qualifying jurisdiction;
income tax purposes.
• Gambling winnings from a state-conducted lottery. See
9. Subtract contributions made to an MRA established
Informational Publication 2011(28), Connecticut Income
pursuant to Conn. Gen. Stat. §32-9zz.
Tax Treatment of State Lottery Winnings Received by
See Special Notice 2012(6), 2012 Legislative Changes
Residents and Nonresidents of Connecticut; or
Affecting the Income Tax.
• Income from real or tangible personal property situated in
Do not use Line 49 to subtract income subject to tax in a
a qualifying jurisdiction.
qualifying jurisdiction (see Schedule 2 - Credit for Income
Income from intangibles, such as stocks and bonds, is not
Taxes Paid to Qualifying Jurisdictions, below) or income of
considered derived from or connected with sources within
a nonresident spouse. See Spouses With Different Residency
a qualifying jurisdiction unless the income is from property
Status on Page 17.
employed in a business, trade, or profession carried on in
Line 50: Total Subtractions
that jurisdiction.
Add Lines 40 through 49 and enter the total.
What Payments Do Not Qualify
• Income tax payments made to a qualifying jurisdiction on
Schedule 2 - Credit for Income Taxes Paid to
income not derived from or connected with sources within
Qualifying Jurisdictions
the qualifying jurisdiction (such as wages not derived from
or connected with sources within the qualifying jurisdiction);
You must fi rst complete Form CT-1040, Schedule 3 - Credit
• Income tax payments made to a qualifying jurisdiction on
for Property Taxes Paid on Your Primary Residence, Motor
income not included in your Connecticut adjusted gross
Vehicle, or Both, before completing Schedule 2. See the
income;
instructions for Schedule 3 - Property Tax Credit on Page 29.
• Income tax paid to a jurisdiction that is not a qualifying
Am I Eligible for the Credit for Income Taxes Paid
jurisdiction, including a foreign country or its provinces
to Qualifying Jurisdictions
(for example, Canada and Canadian provinces);
If you are a resident of Connecticut and if any part of your
• Alternative minimum tax paid to a qualifying jurisdiction;
income was taxed by a qualifying jurisdiction, you may
• Income tax paid to a qualifying jurisdiction if you claimed
be able to claim a credit against your Connecticut income tax
credit on that jurisdiction’s income tax return for income
liability for qualifying income tax payments you have made.
tax paid to Connecticut; or
Taxpayers seeking a credit for alternative minimum taxes
• Penalties or interest on income taxes you paid to a qualifying
paid to another jurisdiction must complete Form CT-6251,
jurisdiction.
Connecticut Alternative Minimum Tax Return - Individuals, to
calculate their alternative minimum tax credit.
Limitations to the Credit
The total credit is limited to whichever of the following
Qualifying Jurisdiction
amounts is least:
A qualifying jurisdiction includes another state of the United
States, a local government within another state, or the District
• The amount of income tax paid to the qualifying jurisdiction;
of Columbia. A qualifying jurisdiction does not include the
• The portion of Connecticut income tax due on the
State of Connecticut, the United States, or a foreign country
Connecticut adjusted gross income sourced in the qualifying
or its provinces (for example, Canada and Canadian provinces).
jurisdiction; or
Qualifying Income Tax Payments
• The amount of your Connecticut income tax entered on
Form CT-1040, Line 6.
Qualifying income tax payments are income taxes you
actually paid on income:
How to Calculate the Credit
• Derived from or connected with sources within the
You must first complete your income tax return(s)
qualifying jurisdiction; and
for the qualifying jurisdiction(s). Then complete the
Schedule 2 - Worksheet on Page 28 to determine the amount
• Subject to tax in the qualifying jurisdiction.
to enter on Schedule 2, Line 53.
Page 26
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