Form Ct-1040 Nr/py - Connecticut Nonresident And Part-Year Resident Income Tax Return And Instructions - 2012 Page 26
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56How to Calculate the Credit
dividends received November 2. Laura enters on Schedule 2
Worksheet, Column I, the amounts she entered on Form
You must fi rst complete your income tax return(s) in the qualifying
CT-1040NR/PY, Schedule CT-1040AW, Column B: Line 1,
jurisdiction(s). Then, complete the Schedule 2 Worksheet, on Page 25
$38,000; Line 2, $2,000; and Line 3, $25,000. In Column II,
to determine the amount to enter on Schedule 2, Line 55.
she enters: Line 1,$38,000. Credit is allowed for the New
The allowable credit must be separately computed for each
York tax paid on her $38,000 of wage income because it is
qualifying jurisdiction. Use separate columns for each qualifying
derived from or connected to New York during the Connecticut
jurisdiction for which you are claiming a credit. Attach a copy
residency portion of her taxable year.
of all income tax returns fi led with qualifying jurisdictions
Example 2: Ann and Joe are part-year residents who fi le a joint
to your Connecticut income tax return or the credit will be
federal Form 1040 and Form CT-1040NR/PY. Joe’s wages
disallowed.
as an employee working in Rhode Island while a resident of
Schedule 2 provides two columns, A and B, to compute the credit
Connecticut are $20,000 and Ann’s wages as an employee
for two jurisdictions. If you need more than two columns, create
working in Connecticut while a resident of Connecticut
a worksheet identical to Schedule 2 and attach it to the back of
are $25,000. Their combined wages while nonresidents of
your Form CT-1040NR/PY.
Connecticut are $25,000. On their federal Form 1040, Line 7,
If you are claiming credit for income taxes paid to another state
(and on Line 1, Column A, of their Schedule CT-1040AW),
and to one of its political subdivisions, follow these rules to
Ann and Joe entered $70,000. Ann and Joe enter on the
determine your credit:
Schedule 2 Worksheet, $45,000 in Column I, Line 1, and
$20,000 in Column II, Line 1. Ann and Joe also enter $20,000
A. If the same amount of income is taxed by both the city and
on Form CT-1040NR/PY, Schedule 2, Line 55.
state (see the Line 61 example on Page 27):
1. Use only one column on Form CT-1040NR/PY, Schedule 2,
Example 3: Linda, a part-year resident, is a sole proprietor
to calculate your credit;
of a business conducted at two locations, one in Connecticut
and one in Massachusetts. All of Linda’s income was earned
2. Enter the same income taxed by both city and state in that
while she was a Connecticut resident. On Linda’s federal Form
column on Schedule 2; and
1040, Line 12, she entered $100,000. Of the $150,000 of gross
3. Combine the amounts of tax paid to the city and the state
income reported on federal Form 1040, Schedule C, $90,000
and enter the total on Line 59 of that column.
is derived from the Massachusetts location. Of the $50,000
B. If the amounts of income taxed by both the city and state
of expenses reported on her Schedule C, $35,000 is derived
are not the same:
from the Massachusetts location. When completing Schedule
1. Use two columns on Form CT-1040NR/PY, Schedule 2;
2 Worksheet, Linda enters $100,000 in Column I, Line 5, and
2. Include only the same income taxed by both jurisdictions
$55,000 ($90,000 - $35,000), in Column II, Line 5. Linda also
in the fi rst column; and
enters $55,000 on Form CT-1040NR/PY, Schedule 2, Line 55.
3. Include the excess income taxed by only one of the
Schedule 2 - Line Instructions
jurisdictions in the next column.
Line 53: Connecticut Adjusted Gross Income
Schedule 2 - Worksheet Instructions
During the Residency Portion of the Taxable Year
Complete the Schedule 2 Worksheet, on Page 25 to determine
The amount from Schedule CT-1040AW, Part-Year Resident
the portion of your Connecticut adjusted gross income during the
Income Allocation, Line 30, Column B, is entered on Line 53
residency portion of your taxable year derived from a qualifying
with the following exceptions:
jurisdiction. Enter in Column I the items of income you earned
1. Add to the amount on Line 30, Column B, any net loss during
during the residency portion of your taxable year and entered on
the residency portion of your taxable year derived from or
Schedule CT-1040AW, Column B. For each line in Column II,
connected with sources in a qualifying jurisdiction(s) where
enter the items of income from Column I that meet all of the
you were subject to income taxation (whether or not income
following conditions:
tax was actually paid to the jurisdiction(s)).
• The income was earned during the residency portion of your
2. For the residency portion of your taxable year, add back any
taxable year;
item of loss or deduction and subtract any item of income or
• The income is derived from or connected with sources within
gain included in Schedule CT-1040AW, Column B, as an item
a qualifying jurisdiction;
of special accrual.
• The income is reported on an income tax return fi led with
Example: Sam’s Connecticut adjusted gross income for
that qualifying jurisdiction and subject to income tax in the
the residency portion of his taxable year is $60,000 which
jurisdiction; and
includes income of $15,000 from business activities conducted
• You have paid income tax on the income to that qualifying
in Massachusetts and a net loss of $20,000 from a business
jurisdiction.
conducted in Rhode Island. He must add the $20,000 net loss
to the $60,000 and enter $80,000 on Line 53.
Example 1: Laura, a single taxpayer, was employed in the
State of New York during the entire taxable year and moved
Line 54: Taxing Jurisdiction(s)
into Connecticut on July 1. Her Connecticut adjusted gross
If you claim credit for income taxes paid to a qualifying
income is $105,000. On Form CT-1040NR/PY, Schedule
jurisdiction, enter the name and the two-letter code of each
CT-1040AW, Column A, Laura reported the following:
qualifying jurisdiction for which you are claiming credit. If you are
$76,000 in wages, $4,000 in interest, and $25,000 from
Page 26
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