Instructions For Form Ct-1040 - Connecticut Resident Income Tax - 2012 Page 27
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52The allowed credit must be separately computed for
Column I
each qualifying jurisdiction. Use separate columns for
Enter on Lines 1 through 15 of the worksheet the amounts
each qualifying jurisdiction for which you are claiming a
entered on Lines 7 through 21, respectively, of your federal
credit. Attach a copy of all income tax returns fi led with
income tax return.
qualifying jurisdictions to your Connecticut income tax
Enter on Line 17 of the worksheet the amount entered on
return or the credit will be disallowed.
Line 36 of your federal income tax return.
Schedule 2 provides two columns, A and B, to compute
Enter on Line 19 of the worksheet the net amount of
the credit for two jurisdictions. If you need more than two
your Connecticut modifi cations to federal adjusted gross
columns, create a worksheet identical to Schedule 2 and attach
income. Subtract Form CT-1040, Schedule 1, Line 50, from
it to the back of your Form CT-1040.
Line 39 to arrive at this amount.
If you are claiming credit for income taxes paid to another
Column II
state and to one of its political subdivisions, follow these
For each line, enter that portion of the amount entered on
rules to determine your credit.
the same line of Column I you reported on an income tax
A. If the same amount of income is taxed by both the city
return fi led with (and on which income tax was paid to) the
and state (see example for Line 56 on Page 29):
qualifying jurisdiction. On Line 17, enter only the portion of
the total federal adjustments to income directly related to
1. Use only one column on Form CT-1040, Schedule 2,
income sourced in the qualifying jurisdiction. On Line 19,
to calculate your credit;
enter only the portion of Connecticut modifi cations directly
2. Enter the same income taxed by both city and state in
related to income sourced in the qualifying jurisdiction. The
that column on Schedule 2; and
fact that the qualifying jurisdiction may take into account your
3. Combine the amounts of tax paid to the city and the
entire adjusted gross income (to compute the rate at which
state and enter the total on Line 57 of that column.
your income sourced in that jurisdiction will be taxed) does
not mean you paid income tax to that jurisdiction on your
B. If the amounts of income taxed by both the city and state
entire adjusted gross income. Because you are a nonresident
are not the same:
of the qualifying jurisdiction, you may be taxed by that
1. Use two columns on Form CT-1040, Schedule 2;
jurisdiction only on your income sourced in that jurisdiction.
2. Include only the same income taxed by both
Example 1: Amy, a Connecticut resident whose fi ling status is
jurisdictions in the fi rst column; and
single, earned wages of $150,000 from a company located in the
3. Include the excess income taxed by only one of the
State of New York. Amy works inside and outside of New York
jurisdictions in the next column.
and allocated her wage income based upon the days worked in
New York. She determined $100,000 to be her New York State
allocated wage income and reported and paid this amount on
Schedule 2 - Worksheet Instructions
her New York nonresident income tax return. On her federal
Complete the Schedule 2 Worksheet to determine the portion
Form 1040, Line 7, she entered $150,000. When completing
of your Connecticut adjusted gross income derived from a
the Schedule 2 Worksheet, she enters $150,000 in Column I,
Line 1, and $100,000 in Column II, Line 1. Amy also enters
qualifying jurisdiction. For each line in Column II, enter the
$100,000 on Form CT-1040, Schedule 2, Line 53.
items of income from Column I that meet all of the following
conditions listed below.
Example 2: Luke and Lee fi le a joint federal Form 1040 and a
joint Form CT-1040. Lee’s wages as an employee working in
• The income is derived from or connected with sources
Rhode Island are $20,000 and Luke’s wages as an employee
within a qualifying jurisdiction;
working in Connecticut are $25,000. On their federal
• The income is reported on an income tax return fi led with
Form 1040, Line 7, they enter $45,000. When completing
that qualifying jurisdiction and subject to income tax in
the Schedule 2 Worksheet, Luke and Lee enter $45,000 in
Column I, Line 1, and $20,000 in Column II, Line 1. Luke and
the jurisdiction; and
Lee also enter $20,000 on Form CT-1040, Schedule 2, Line 53.
• You have paid income tax on the income to that qualifying
jurisdiction.
Example 3: Linda is a sole proprietor of a business
conducted at two locations: one in Connecticut and one in
If you paid income tax to more than one qualifying
Massachusetts. On Linda’s federal Form 1040, Line 12, she
jurisdiction, you must complete a separate worksheet for each
entered $100,000. Of the $150,000 of gross income reported on
jurisdiction. Keep the worksheet with your 2012 tax records.
federal For m 1040, Schedule C, $90,000 is derived
Do not attach it to your tax return.
from the Massachusetts location. Of the $50,000 of
expenses reported on Schedule C, $35,000 is derived
from the Massachusetts location. When completing
The federal income tax return line references are to the federal
the Schedule 2 Worksheet, Linda enters $100,000 in
Form 1040. If you fi le a federal Form 1040A or federal Form
Column I, Line 6, and $55,000 ($90,000 - $35,000) in
1040EZ, use the appropriate lines from those forms.
Column II, Line 6. Linda also enters $55,000 on Form CT-1040,
Schedule 2, Line 53.
Page 27
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