2021 ProSeries/Connecticut Readme
Release 2021.300
Contents
Items addressed in this release
Items addressed in previous releases
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:
Items addressed in previous releases
The following issues, forms and worksheets have been addressed in previous releases:
- Form 8915 - The calculations in the program have been updated for filing of returns with federal Form 8915.
- Form CT-1040ES Estimated Income Tax Payment Vouchers
- Form CT-2210 Underpayment of Estimated Income Tax
- Form CT-2210 Schedule A Annualized Income Installment Schedule
- Form CT-2210 Schedule B Interest Calculation
- Form CT-6251 Alternative Minimum Tax - Individuals
- Schedule CT-1040BA Nonresident Business Apportionment
- Form CT-8801 Credit for Prior Year Minimum Tax for Individuals, Trusts, and Estates
- Form CT-1040X Amended Income Tax Return for Individuals
What's new for ProSeries/Connecticut
The following items are new for tax year 2021:
- Rolling Federal Conformity - Connecticut continues to automatically agree to Federal 2021 tax law changes.
- Due Dates - Connecticut will follow the Federal due dates.
- Earned Income Tax Credit Increase - Connecticut resident's percentage of Federal EIC increased from 22% to 30.5%.
- Qualified Retirement Plan Deduction - Increase in pension and annuity deduction from 28% to 42%.
- Applying Your Refund to CHET - For 2021 you can elect to apply your Connecticut refund to CHET.
- Teacher Retirement Subtraction Increase - Connecticut Teacher deduction increased from 25% to 50%.
- Teacher Retirement Subtraction Choices - For taxable years beginning on or after January 1, 2021 retired teachers are allowed to claim either the teacher's pension subtraction or the pension and annuity subtraction.
Other Important Information
- Social Security Benefits Exempt from Tax - Adjusted Gross Income Thresholds Increased for determining the amount of Social Security Benefits exempt from Connecticut income tax.
- Pension deduction - 42% of pensions received may be subtracted from income, provided it was properly included in Federal AGI and the federal AGI is less than $75,000, or married filing jointly with federal AGI of less than $100,000.
- 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.
- Pass-Through Entity Tax Credit reduction - The Pass-Through Entity Tax Credit that a member of a pass-through entity is allowed to claim against the Connecticut income tax was reduced to 87.50% of the member's share of the Connecticut PE Tax due and paid by the PE.
Forms
The Connecticut Department of Revenue Services has approved for filing all forms and
schedules included in ProSeries/Connecticut.
Electronic Filing
You can file returns electronically with this version of ProSeries/Connecticut.
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