State Of Ct Income Tax

Date:

Share post:

What Does This Mean For Illinois

CT residents seeing higher tax bill even after state tax cuts

Connecticuts experience suggests Illinois could suffer a similar fate if lawmakers push for a progressive income tax. That means less economic growth, fewer jobs, a shrinking labor force and deterioration in economic conditions that would result in more individuals falling below the poverty line.

Contrary to claims that a progressive tax would only hit high earners, such a policy would harm everyone. The results in Connecticut suggest the tax led to a large increase in the poverty rate.

It is worth asking: Who is most at risk of falling below the poverty line in Illinois? The empirical evidence suggests Illinois residents who live in non-metro areas, dont have college degrees and are non-white are at increased risks of being below the poverty line.10 Add a progressive tax, and those most likely to take the hit are Illinois workers who lack a college degree, are minorities and live in rural areas.

Residents throughout Illinois, particularly in places such as Alexander, Cass, Scott and Pulaski counties would be most harmed. In the Chicago area, residents of Calumet, Cicero, Thornton, Rich Township and Berwyn would be most harmed.

Instead of protecting Illinois most vulnerable residents, a progressive income tax may end up harming already vulnerable communities.

Appealing Audited And Adjusted Returns

If the DRS decides to audit your return, the audit may change the amount you owe. The DRS will notify you with a Tax Determination Report. If you disagree with the changes, you have the right to request an informal conference by contacting the supervisor from the office that handled the audit.

During the conference, you present your case, and adjustments may be made to your account. At that point, if you still disagree with the notice of assessment, you can file a formal appeal.

Typically, you have 60 days after the date of the notice of assessment to file a protest. If you’re appealing a jeopardy assessment , you only have 10 days.

To appeal assessed taxes in CT, your appeal must include a detailed description of the disputed issue and an explanation of your position. Once the DRS receives your protest, the agency will assign an Appellate Officer or Specialist to your case. If you disagree with their determination, you can appeal to the Superior Court for the Judicial District of New Britain.

Connecticut Department Of Revenue Servicesattaxpayersfingertips

The DRS website has the answer to many state tax questions, including a Frequently Asked Questions page. Taxpayers are also encouraged to call or email DRS with questions specific to their situation. The fastest and easiest way to access state tax forms and instructions is from the DRS website, where these resources can be downloaded and printed.

Connecticut Department of Revenue Services SecureVideoconferencingDRS now offers remote assistance, where taxpayers can schedule an appointment and receive real-time DRS tax assistance from the comfort of their own homes, from a trained DRS professional during normal business hours, via the online Microsoft Teams platform.

Connecticut StateTaxFormandInstructionRequestsMailUpon request, you are welcome to contact DRS at the phone number below to request tax forms, booklets, and instructions that DRS maintains in-house, to be mailed directly to your home address.

Connecticut Department of Revenue Services HartfordDropBoxDRS has also set up a drop box, where you can bring hard copies of state tax payments and documents, available at our main office in Hartford. The drop box is monitored continually, with distribution to appropriate DRS personnel daily.

Also Check: What Is Tax Filing Deadline

Connecticut Tax Amnesty Program

The CT DRS occasionally offers amnesty to individuals and businesses with unpaid taxes or unfiled returns. CT currently has a tax amnesty program in effect until January 31st, 2022. Previous amnesty programs have offered relief on interest, penalties, and criminal persecution to taxpayers who owe income tax, business entity tax, sales and use tax, withholding tax, corporate business tax, and gift tax.

At the time of writing, CT is offering tax amnesty from November 1, 2021, to January 31, 2022, for any tax periods ending on or before December 30, 2020, for all state taxes collected by the DRS. Through this amnesty program, taxpayers can receive penalty waivers and a 75% reduction in interest.

Tax Forms Federal And State Of Connecticut

PowerChurch Software

HOW TO OBTAIN FEDERAL TAX FORMS

  • Federal tax forms can be downloaded at the Internal Revenue Service website:
  • Federal tax forms and publications are available at any IRS field office and at some libraries and post offices, during tax filing season.

HOW TO OBTAIN CONNECTICUT TAX FORMS

  • Connecticut state tax forms can be downloaded at the Department of Revenue Services website: www.ct.gov/drs/
  • Connecticut tax forms and publications are available at any DRS office and at some libraries and post offices, during tax filing season.

WHERE TO FILE FEDERAL TAX FORMS

  • Mailing addresses for filing your federal tax return can be found at this IRS webpage, by clicking on state filing in, and then link to address to mail to:

WHERE TO FILE CONNECTICUT TAX FORMS

State of Connecticut Department of Revenue Services website United States Internal Revenue Service websiteINTERNET PAGE PREPARED BY: 211/nlCONTENT LAST REVIEWED: January2022

Don’t Miss: Which States Do Not Tax Pension

Business Return General Information

Connecticut currently requires electronic filing for most business returns. Connecticut supports the current and two prior years. TaxSlayer Pro and Connecticut do not currently support electronic filing of the Connecticut Fiduciary tax return Form CT-1041.

Due Dates for Connecticut Business Returns

Corporations – Returns are due by the 1st day of the month following the due date of the federal return of the taxable year. The due date will generally be the first day of the fifth month after the close of the Corporation’s tax year. The only exception is for a Corporation with a June 30th year end which will have a due date of October 1st.

S-Corporations – Returns are due the 15th day of the fourth month following the close of the tax year. Calendar year S-Corporation returns are due on April 15.

Partnerships – Returns are due the 15th day of the fourth month following the close of the tax year. Calendar year Partnership returns are due on April 15.

Fiduciary & Estate – Returns are due the 15th day of the fourth month following the close of the tax year. Calendar year Estate returns are due on April 15.

Business Extensions

Amended Business Returns

Connecticut Amended Business Returns cannot be e-filed. Amended business returns must be mailed.

Connecticut Tax Resolution Options And Back Tax Consequences

The Connecticut Department of Revenue Services handles tax collection and administration in CT. You need to deal with this agency if you owe delinquent taxes or have other state-tax-related issues. The DRS uses relatively aggressive collection practices, and it is often less willing to abate penalties and make arrangements with taxpayers than the Internal Revenue Service .

You need to understand the DRS’s unique rules and processes if you want to take care of your state back taxes as effectively as possible, but unfortunately, the agency is relatively vague about its guidelines, making it hard to negotiate unless you have a lot of experience.

To help you understand the basics, this guide outlines tax resolution options and explains what happens if you don’t pay back taxes in CT.

Recommended Reading: Where’s My Tax Credit

Estimated Payments And Amendments

If estimated payments are necessary, they can be paid online at drsindtax.ct.gov/AUT/welcomeindividual.aspx, or by mail to the DRS. When paying by mail, send vouchers and payments to:

PO Box 2932Hartford CT 06104-2932

If an error is discovered and an amendment is needed, taxpayers may use the form CT 1040X and mail it to:

PO Box 2978

Business Return Electronic Filing Information

Connecticut Gov. Ned Lamont Talks Largest Ever Increase To State Earned Income Tax Credit

Business Electronic Filing Mandate – Connecticut mandates that most business tax returns and associate payments be electronically filed and paid. The only exceptions to the e-file mandate are Fiduciary Returns, Amended Returns and taxpayers that have valid waivers from the Department of Revenue. To obtain a one-year hardship waiver from filing and paying electronically the entity must request a waiver no later than 30 days before the due date of the first electronic filing or payment. See: Form DRS-EWVR, Electronic Filing and Payment Waiver Request.

Also Check: Wisconsin Sales And Use Tax

State Income Tax Filing

The information on this page pertains to Connecticut State Income Taxes only. If you received income in other states besides CT, you may need to file a state income tax return in those states as well. See the ‘Income Tax Filing With Other States’ section at the bottom of this page for more information.

Ct Resident Tax Filers

If you are a CT resident for tax purposes, complete Form CT-1040.

Options for filing your CT State Tax Return:

  • Use the Taxpayer Service Center E-filing website if you filed CT state income taxes the previous tax year.
  • For further assistance filling out your CT state tax return, purchase commercial tax preparation software for individual use .

You May Like: How Long Does Your Tax Return Take

Innocent Spouse Relief In Connecticut

You can apply for innocent spouse relief in CT If you believe you should not be held responsible for the tax liability from a state tax return you filed with your current or former spouse. CT offers innocent spouse relief, separation of liability, and equitable relief, but you must file Form CT-8857 and meet strict criteria to qualify for any of these programs.

For instance, if your spouse underreported income without your knowledge, you may be able to get absolved from the tax liability related to that income. Similarly, if your spouse died or you got divorced, you may qualify for relief from the portion of your state back taxes related to them.

Who Needs To File A Connecticut State Return

What Is Ct State Tax

You must file a Connecticut state income tax return if any of the following is true for the 2021 tax year:

If none of the above apply, do not file a Connecticut resident income tax return.

If you are using Sprintax to prepare your taxes, it will inform you if you need to complete a CT state income tax return.

For more information about filing your CT state return, visit the Yale Tax Office website or the CT Department of Revenue Services website.

The filing deadline for your 2021 CT tax return is April 18, 2022.

Recommended Reading: State Of California Sales Tax

Connecticut State Tax Payments

Connecticut has many income tax payment options. Find the option that works best for you below.

Due by April 18, 2023

Connecticut Department of Revenue Contact Information:Phone: -297-5962Phone: -382-9463 Online: Connecticut Department of Revenue ServicesEmail: drs@po.state.ct.usConnecticut Contact Form

Wheres My Refund Connecticut

To check the status of your Connecticut state refund online, go to

You will be prompted to enter:

Then, click Next to see your refund status.

Your Connecticut refund status is available via phone: from anywhere, or in the Greater Hartford calling area call .

Generally, it takes 10 to 12 weeks to process paper returns and a shorter time to process e-filed returns.

Also Check: Take Home Pay After Tax

Overview Of Connecticut Taxes

Connecticut has above average state income and sales taxes, and property taxes are likewise on the high side. But there are no extra income taxes or sales taxes at the local level in the state.

Household Income
Number of State Personal ExemptionsDismiss

* These are the taxes owed for the 2021 – 2022 filing season.

Getting Your Connecticut Tax Refund

Tax the rich backfires in Connecticut

If your state tax witholdings are greater then the amount of income tax you owe the state of Connecticut, you will receive an income tax refund check from the government to make up the difference.

It should take one to three weeks for your refund check to be processed after your income tax return is recieved. E-filing your return and filing early can help ensure your refund check gets sent as quickly as possible.

Once you’ve filed your tax return, all you have to do is wait for your refund to arrive. If you want to check the status of your Connecticut tax refund, you can visit the Connecticut Income Tax Refund page.

Read Also: Lee County Tax Collector Fort Myers

Determining Your Ct State Tax Filing Status

Your CT state tax filing status will determine how you are taxed and which forms you must fill out. It differs from Federal tax filing status and may also differ from your immigration residency status.

The information below is provided as a general guide. For specific information about nonresident vs. resident for CT state tax purposes, refer to the CT Income Tax Instructions.

You are considered a nonresident CT state tax filer for the year if one or more of the below conditions are met:

  • Your legal residence is outside of CT and you do not maintain a permanent place to live in CT for the entire tax year .
  • Your legal residence is in CT but you do not maintain a permanent place to live in CT, and you do not spend more than 30 days in CT in the tax year.

You are considered a resident CT state tax filer for the year if one or more of the below conditions are met:

  • CT was your permanent legal residence for the entire tax year
  • You maintained a permanent place of abode in CT during the entire tax year and spent a total of more than 183 days in CT during the tax year.

Please note, nonresidents for immigration purposes who meet either of the above conditions are considered CT residents for CT income tax purposes even if federal Form 1040NR-EZ or federal Form 1040NR is filed for federal income tax purposes.

A Better Path Forward

Rejecting a progressive income tax would spare Illinoisans from Connecticuts sorry fate. Changes to the state tax code will not fix the structural flaws with the states finances or reform the main cost-drivers, pensions and government employee healthcare costs. Those two items have led state spending to increase 48 percent faster than Illinoisans personal incomes in the past decade.

So long as state expenditures continue to outpace the growth in the states economy, Illinoisans will be forced to endure tax hikes regardless of the structure of the state income tax. A progressive income tax will only make it easier for politicians to gradually raise middle-class taxes, as in Connecticut.

A progressive tax is a bad deal for Illinoisans. They would be giving up constitutional protections for an illusory promise from lawmakers to lower taxes for some. But a look at Illinois history and the outcomes of progressive tax states show that promise is unlikely to be kept. Any progressive tax rates will almost certainly rise to the level of spending in Springfield and that means tax hikes on the middle class.

Illinois families and the states economy simply cant afford more tax hikes.

Illinois is already experiencing the weakest economic expansion in state history, and a progressive income tax hike will only serve to hinder the states sluggish economy.

Don’t Miss: How Long Does Taxes Take To Process

Connecticut State Tax Guide

State tax rates and rules for income, sales, property, fuel, cigarette, and other taxes that impact Connecticut residents.

Retirees: Least Tax-Friendly

The Constitution State is a tax nightmare for many residents. Connecticut’s median property tax rate is the third-highest in the U.S., so the $10,000 cap on the federal tax deduction for state and local taxes stings a bit more here.

What Were The Effects Of The Connecticut Tax Hikes

Ct State Tax Form

Connecticut became the last state to enact an income tax in 1991, introducing a flat 4.5 percent income tax rate. In 1996, the state decided to phase in a progressive income tax featuring tax brackets with a 3 percent tax rate and a 4.5 percent tax rate. This income tax relief was short lived. In the time since phasing in the income tax, the median household has seen their income tax rates increase by more than 13 percent. Today, Connecticut has seven income tax brackets with marginal income tax rates ranging from 3 to 6.99 percent.

Effects of the tax hikes on real GDP

Connecticuts decision to enact an income tax had immediate negative effects on the states economy, initially costing the states economy more than $4 billion, with the economic cost growing to $10 billion following the decision to make the income tax progressive and to gradually raise rates.

The effects of the tax changes are consistent with the expert literature on the subject. Economists widely agree that tax hikes have adverse effects on economic output . They also agree that progressive tax structures reduce economic growth even more than flat tax structures . Connecticuts results provide additional evidence that tax increases are highly contractionary.5

Effects of the tax hikes on the labor market

These outcomes show why the academic literature remains divided as to whether progressive income taxation reduces inequality .

Effects of the tax hike on poverty

Recommended Reading: Property Taxes In New Hampshire

Connecticut Income Tax Calculator

$15,000.00* $0.00*

* Note:

The standard deduction, which Connecticut does not have, is a deduction that is available by default to all taxpayers who do not instead choose to file an itemized deduction.

The Personal Exemption, which is supported by the Connecticut income tax, is an additional deduction you can take if you are primarily responsible for your own living expenses. Likewise, you can take an additional dependent exemption for each qualifying dependent , who you financially support.

The Federal income tax also has a standard deduction, personal exemptions, and dependant deductions, though they are different amounts than Connecticut’s and may have different rules.

Head over to the Federal income tax brackets page to learn about the Federal Income Tax, which applies in all states nationwide.

Related articles

Are Real Estate Taxes The Same As Property Taxes

Deducting Your Property Taxes BiggerNews...

File My State Taxes For Free

Can I File My Taxes Online For Free If Im A...

Tax Burden By State 2022

Which Other States Pay No Income Tax ...

Best States For Income Tax

Are There Any States With No Property Taxes ...