Form Ct-1120 - Computation Of Interest Due On Underpayment Of Estimated Tax

General Instructions

of the tax credits. In addition, no tax credit shall reduce an

included corporation’s tax calculated under Conn. Gen. Stat.

Complete this form in blue or black ink only. Use Form CT-1120

§12-219 to an amount less than $250.

to determine interest due on underpayments of estimated

Connecticut corporation business tax or unrelated business

Line 11 - Do not enter an amount in Column A. Enter in Column B

income tax for Form CT-1120, Corporation Business Tax

the amount from Line 17, Column A. Enter in Column C the sum

Return; Form CT-1120U, Unitary Corporation Business Tax

of Line 17, Column A, plus Line 17 Column B. Enter in Column D

Return; Form CT-1120CR, Combined Corporation Business

the sum of Line 17, Column A, plus Line 17, Column B, plus

Tax Return; or Form CT-990T, Connecticut Unrelated Business

Line 17, Column C.

Income Tax Return.

Line 13 - Enter the appropriate amount of your required

If the taxpayer made timely installment tax payments (Forms

installment as calculated in Part II, Lines 6 through 9, above.

CT-1120 ESA, ESB, ESC, and ESD or Forms CT-990T ESA,

Line 19 - Enter all estimated tax payments made through the

ESB, ESC, and ESD) and paid at least 90% of the current year

payment due date for the period. Include overpayments of the

tax or 100% of the prior year tax before the application of any

prior year tax applied to the current year. If the tax return for

tax credits at the required installment rate, the taxpayer is not

the prior year was ﬁ led on time or within the extension period

subject to interest on underpaid installments. If the current year

tax is $1,000 or less, it is not necessary to complete this form.

if a timely request for an extension was ﬁ led, the overpayment

will be treated as estimated tax paid on the ﬁ fteenth day of the

Estimated tax payments may be based on the applicable

third month (March 15 for calendar year ﬁ lers). Otherwise, the

percentage of the current year tax determined by annualizing

overpayment will be treated as estimated tax paid on the date

net income. See Informational Publication 2013(18),

the prior year tax return was ﬁ led.

Q & A on Estimated Corporation Business Tax and Worksheet

CT-1120AE.

Part IV – Computation of Interest

Lines 10a, 13c, 16c, and 19c - Enter on the appropriate line

Line Instructions

the required installment amount due. The required installment

Part I – Computation of Required Annual Payment

amounts are computed as follows:

Line 1 - Enter the tax liability for the current income year from

Regular Filers

Form CT-1120 or Form CT-1120U, Schedule C, Line 6, minus

Schedule C, Line 1c; Form CT-1120CR, Part IV, Line 13, minus

Enter the amount from Part II, Lines 6 through 9; or

Part IV, Line 4; or Form CT-990T, Computation of Amount

Annualized Filers

Payable, Line 5.

Enter the amount from Part III, Line 17, Column A, on Line 10a.

The amount entered on Line 1 should not include any recapture

Enter the amount from Part III, Line 17, Column B, on Line 13c.

of tax credits.

Enter the amount from Part III, Line 17, Column C, on Line 16c.

Line 3 - Enter the total tax from the prior income year before

Enter the amount from Part III, Line 17, Column D, on Line 19c.

the application of any tax credits. The amount entered on this

Lines 10b, 11a, 12a, 13a, 14a, 15a, 16a, 17a, 18a, 19a, 20a,

line should not include any recapture of tax credits. If no return

21a, and 22a - Enter the payment amounts on the appropriate

has been ﬁ led for the prior income year or a return was ﬁ led for

line according to the date of payment. Payments are ﬁ rst applied

less than a twelve-month period, leave Line 3 blank and enter

to any remaining unpaid installment balances that are due, and

the amount from Line 2 on Line 5.

then are applied to the next required installment due.

Part II – Computation of Required Installments

Lines 10 through 22 - Interest is calculated monthly on the

The required installment payments are due on or before the

accumulated unpaid required installment balance due at 1%

ﬁ fteenth day of the third, sixth, ninth, and twelfth months of the

per month or fraction of a month.

income year. If the due date falls on a Saturday, Sunday, or legal

Line 23 - Enter the total interest due on unpaid required

holiday, the next business day is the due date.

installment balances by adding the amounts on Lines 10

Lines 6 through 9 - Calculate the required minimum installment

through 22. This amount is also entered on the appropriate

payments due. Multiply the required annual payment from

Connecticut tax form.

Part I, Line 5, by the required installment rate and enter the

Payments accompanying an estimated installment Form

result on the appropriate line.

CT-1120 ESA, ESB, ESC, and ESD or Form CT-990T ESA,

ESB, ESC, and ESD, will be credited as of the U.S. Postal

Part III – Annualized Income Installment Schedule

Service cancellation mark on the payment. The payment must

Complete column A entirely before proceeding to the

be made or credit established on or before the due date of the

next column.

required installment. Payments of estimated tax are credited

Line 1 - Enter the corporation’s total net income for the period.

ﬁ rst against underpaid installments in the order in which such

installments are required to be paid. The overpayment from the

Line 4 - The Connecticut corporation business tax rate is 7.5%.

ﬁ ling of a corporation business tax return is established as of the

Multiply Line 3 by 7.5% (.075).

U.S. Postal Service cancellation mark on the completed return.

Line 5 - If the corporation is subject to the surtax or preference

Taxpayers can use certain private delivery services, in addition

tax, include the amounts on Line 5.

to the U.S. Postal Service, for delivering returns, claims,

Line 7 - Enter the corporation’s estimated allowable Connecticut

statements or other documents, or payments, and meet the

corporation business tax credits for the year. The amount of tax

timely ﬁ ling/payment rules. The timely ﬁ led and timely payment

credits allowable against the corporation business tax shall not

rules will be met if the U.S. Postal Service cancellation date, or

exceed 70% of the amount of tax due prior to the application

the date recorded or marked by a designated private delivery

service (PDS) using a designated type of service, is on or

before the due date. Not all types of service provided by these

designated PDSs qualify.

Page 3 of 4

Form CT-1120I (Rev. 12/13)

Form Ct-1120 - Computation Of Interest Due On Underpayment Of Estimated Tax - 2013 Page 3

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