2018 ProSeries/Connecticut Readme

Release 2018.012

Contents

What's new for ProSeries/Connecticut

Forms

Electronic filing

Additional Information

Items addressed in this release

The following forms and worksheets have been updated and finalized since the previous release:

• Form CT-6251 Alternative Minimum Tax - Individuals
• Form CT-6251A Alternative Minimum Tax - Schedule A
• Form CT-8801 Credit for Prior Year Minimum Tax for Individuals, Trusts, and Estates
• Form CT-2210 Schedule A Annualized Income Installment Schedule
• Form CT-1040BA Nonresident Business Apportionment - Individuals
• Form CT-1040 EF Electronic Withdrawal Payment Record
• Form CT-1040X Amended Income Tax Return for Individuals

Items addressed in previous releases

The following issues, forms and worksheets have been addressed in previous releases:

• Form CT-1040 Connecticut Resident Income Tax Return
• Form CT-1040AW Part-Year Resident Income Allocation
• Form CT-1040NR/PY Nonresident and Part-Year Resident Income Tax Return
• Form CT-SI Nonresident or Part-Year Schedule Of Income From Connecticut Sources
• Form CT-1040V Electronic Filing Payment Voucher
• Form CT-1040ES Estimated Income Tax Payment
• Form CT-IT Income Tax Credit Summary
• Form CT-CHET 529 Plan Contributions
• Form CT-1040WH Connecticut Income Tax Withholding
• Form CT-EITC Earned Income Tax Credit
• Form CT-1040EXT Application for Extension of Time to File
• Form CT-PE Pass-Through Entity Tax Credit

What's new for ProSeries/Connecticut

The following items are new for tax year 2018:

• Connecticut Pass-Through Entity Tax Credit - For taxable years beginning on or after January 1, 2018, pass-through entities that carry on business in Connecticut or have income derived from Connecticut sources are subject to a Connecticut pass-through entity tax. If the taxpayer is a partner or member of a pass-through entity required to pay the PE tax, they are allowed a credit for their share of the PE tax imposed on the pass-through entity.
• Property Tax Credit - Maximum credit allowed is $200. Taxpayers must either be at least 65 years old or claim a dependent on their tax return to qualify, the property tax credit phase out levels are the same as the prior tax year.
• Teacher's Pension deduction - 25% of pensions received from the Connecticut teacher's retirement system may be subtracted from income, provided it was properly included in Federal AGI.
• Domestic Production Activities Deduction - This deduction has been eliminated.
• Earned Income Tax Credit -- Investment Income Limitation - To qualify for the Connecticut earned income tax credit, taxpayer's cannot have investment income over $3,500; the limit was $3,450 in 2017.
• Moving Expenses - For taxable years 2018 through 2025, the moving expense deduction is suspended unless the taxpayer is an active duty member of the military.
• Section 179 Deduction - For taxable years beginning on or after January 1, 2018, taxpayers are required to add back 80% of the IRC 179 amount deducted for federal income tax purposes for the taxable year. Those taxpayers who reported an amount as an addition on their 2018 return will report a 25% subtraction of the IRC 179 amount in each of the four succeeding taxable years.
• Bonus Depreciation Modification - For taxable years on or after January 1, 2017, taxpayers are required to add back any IRC 168(k) bonus depreciation reported on the federal return for property placed in service after September 27, 2017. Those taxpayers who reported the amount as an addition on their 2017 return report a 25% subtraction of the IRC 168(k) amount in each of the four succeeding taxable years.
• New Use Tax Rate - A new tax rate of 2.99% is imposed on sales and purchases of vessels, motors for vessels and trailers used for transporting a vessel made on or after July 1, 2018. Purchases made before June 30, 2018 are subject to the 6.35% rate.
• Paid Preparer Requirements - Paid tax preparers preparing any Connecticut personal income tax return(s) are required to comply with certain requirements and may be required to obtain a tax preparer permit from DRS. See Special Notice 2017(8) and 2018(8) for more information.
• Alternative Minimum Tax - Connecticut conforms to the federal Tax Cut and Jobs Act tax law changes which increased the AMT exemption amount and the exemption phaseouts substantially.

Electronic filing

For a list of forms that can be e-filed, first open a state return, and then go to What's New This Year in Help Center.

Additional information

Check all returns after printing

The Connecticut Department of Revenue scans computer-generated forms to quickly process the income tax returns it receives. To meet the requirements for producing computer-generated forms, ProSeries is required to limit the width of the tax information printed on forms that are scanned. In certain cases, data you entered may be truncated. After completing a tax return, review the information that prints (for example, mailing address information), make any necessary changes, and reprint the return before mailing it.

About bar codes on printed state returns

Some states use bar codes on computer-printed tax forms. This special formatting allows the state taxing authorities to process returns more quickly and efficiently. On-screen, you'll see only a small representation of the bar code on the lower-left side of the form. This image is static and does not change based on the information in the return. However, when you print the return, the bar code appears as a large rectangular box on the first page of the form. The width of the bar code is constant; the height varies according to the data in the return. In general, the more complex the return, the larger the printed bar code.

Returns that contain special formatting may be processed at a different location than manually prepared returns. Therefore, the filing instructions that print with the state return may contain a mailing address that's different from the mailing address in the package that is sent to taxpayers. Be sure to have your clients mail their returns to the address in the filing instructions that print with the return.

Important: Because the bar code image is a function of the data in the tax return, it's important that you reprint the page with the bar code if changes are made to any part of the return. Also, do not print blank copies of the main form and prepare them manually. The Connecticut taxing authority may attempt to scan the form and reject it.

End of ReadMe file for ProSeries/Connecticut