Instructions For Form Ct-1040 - Connecticut Resident Income Tax - 2012 Page 3
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52What’s New
Personal Exemption
The tax credit may be claimed by the shareholders or
partners, if the qualifi ed small business is an S corporation
The personal exemption for individuals whose fi ling status
or an entity treated as a partnership for federal income tax
is single has increased to $13,500 for the 2012 taxable year.
purposes. If the taxpayer is a single member limited liability
There is a $1,000 reduction in the personal exemption for
company that is disregarded as an entity separate from its
every $1,000 of Connecticut adjusted gross income over
owner, the tax credit may be claimed by the owner of the
$27,000.
limited liability company, provided the owner is a taxpayer
subject to Connecticut income tax.
Personal Tax Credit
To be eligible to claim the credit, the taxpayer must apply
The Connecticut adjusted gross income (AGI) beginning
to Department of Economic and Community Development
threshold for calculating the personal tax credit for single
(DECD). DECD must render a written decision within 30
fi lers has increased to $13,500 for taxable year 2012.
days after the date the application is received. If approved,
DECD will issue a certifi cation letter to the taxpayer
Property Tax Credit Limitation
indicating that the credit will be available to be claimed.
The annual increase to the property tax credit limitation
Taxpayers must use Schedule CT-IT Credit, Income Tax
threshold for single fi lers in effect for the 2011 taxable year
Credit Summary, to claim this credit.
remains in effect for the 2012 taxable year. The property tax
credit limitation threshold for single fi lers will increase for
See Special Notice 2012(6), 2012 Legislative Changes
the 2013 taxable year.
Affecting the Income Tax.
Form CT-8379, Nonobligated Spouse Claim
Taxpayer’s Email Address
If you are fi ling Form CT-8379, Nonobligated Spouse
DRS tax returns now have a line for taxpayers to enter their
Claim, you may elect to fi le your 2012 Connecticut income
email address. If you provide an email address, DRS may
tax return electronically.
use it to notify you of tax changes and programs. However,
If you elect to fi le your Connecticut income tax return
DRS will never use email to ask for sensitive information,
electronically:
such as your Social Security Number. If you ever have
questions about an email claiming to be from DRS, contact
•
Select the Form CT-8379 indicator on your electronically
DRS directly.
fi led Connecticut income tax return.
See Tax Information, on back cover.
•
Mail the paper Form CT-8379 along with the associated
W-2 or 1099 forms to the Department of Revenue
Manufacturing Reinvestment Account
Services, PO Box 5035, Hartford, CT 06102-5035.
Program
Job Expansion Tax Credit
A manufacturing reinvestment account (MRA) program
allows manufacturers to set aside money to pay for certain
Beginning on or after January 1, 2012, a taxpayer may
qualifying expenses. After being selected by the DECD, an
be allowed a credit for each new qualifying employee or
MRA is a trust created or organized by a manufacturer that
veteran employee hired on or after January 1, 2012, and
has no more than 50 employees. The MRA is held by a
prior to January 1, 2014. The credit may be applied against
Connecticut bank for the benefi t of the manufacturer.
the tax imposed under chapters 207, 208, 212, or 229, but
not against the withholding tax liability imposed under
For taxable years commencing on or after January 1, 2011,
§12-707. The credit cannot exceed the amount of tax due.
in computing Connecticut adjusted gross income, a
The amount of the credit is:
taxpayer making a contribution to an MRA, to the extent
such contribution is not deductible in determining federal
•
$500 per month for each new employee; or
adjusted gross income, is allowed a subtraction modifi cation
•
$900 per month for each qualifying or veteran employee.
to his or her federal adjusted gross income for the amount of
The taxpayer must claim and use the credit in the
such contribution.
taxable year in which it is earned and, if eligible, the two
For taxable years commencing on or after January 1, 2011,
immediately succeeding taxable years, provided the new,
in computing Connecticut adjusted gross income, a taxpayer
qualifying or veteran employee is still employed at the close
receiving a distribution from an MRA, must add back to
of the taxpayer’s taxable year. A credit cannot be claimed
his or her federal adjusted gross income, to the extent not
for a new, qualifying or veteran employee who is an owner,
properly includible in gross income for federal income tax
member or partner in the business, or for a new, qualifying
purposes.
or veteran employee for whom credit is claimed against
See Special Notice 2012(6), 2012 Legislative Changes
any tax under another statutory provision. The credit is not
Affecting the Income Tax.
refundable and any tax credit not used in the taxable year
will expire.
Page 3
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