This Informational Publication has been superseded by IP 91(1.1)
The Connecticut Income Tax:
Supplemental Information for Senior Citizens
PURPOSE: This informational publication is intended as a general guide to the Connecticut income tax for senior citizens. While it does not answer every question about the tax, it will provide answers to some of the most common inquiries.
I am a resident of Connecticut who is retired. My only income is from a pension, social security benefits and a small amount of interest. Must I pay Connecticut income tax?
You will only owe tax on the portion of your Connecticut adjusted gross income which exceeds your personal exemption. In general, your Connecticut adjusted gross income includes your income that is subject to federal income tax, including any portion of social security benefits that is subject to federal income tax.
Is any type of income exempt from Connecticut income tax?
Interest from U.S. Government obligations such as U.S. Savings Bonds or Treasury Notes and interest from State of Connecticut bonds or Connecticut municipal bonds are exempt from Connecticut income tax.
What are the Connecticut personal exemptions?
An unmarried person or a married person filing separately for federal income tax purposes whose Connecticut adjusted gross income is $24,000 or less is entitled to an exemption of $12,000. Married persons filing jointly for federal income tax purposes whose Connecticut adjusted gross income is $48,000 or less are entitled to an exemption of $24,000. An unmarried person filing as a head of household for federal income tax purposes whose Connecticut adjusted gross income is $38,000 or less is entitled to an exemption of $19,000. The exemptions are phased out as income levels increase.
How do I calculate my Connecticut income tax liability?
For a typical taxpayer, the tax is figured by starting with your 1991 federal adjusted gross income:
Deduct the personal exemption
Multiply by the 1991 tax rate of 1.5%
Deduct the personal tax credit
EXAMPLE: Taxpayers are Married, Filing Jointly.
$30,000.00 Federal Adjusted Gross Income
-24,000.00 Personal exemption
6,000.00 Connecticut taxable income
x .015 1991 1.5% tax rate
-67.50 Personal credit ($90 x 75%)
$22.50 Tax due for 1991
I am a Florida resident, but live in Connecticut part of the year. Do I owe Connecticut income tax?
If you are a resident of another state, you will not be taxed as a Connecticut resident unless you have a home here and spend more than 183 days in Connecticut during the year. However, if you earn income in Connecticut from a job performed or business conducted in Connecticut, you will have to pay Connecticut income tax on that income.
I have moved to another state but receive a pension from my former Connecticut employer. Must I pay Connecticut income tax on that pension?
No. Pension income paid in1991 by a Connecticut employer, public or private, to a nonresident will not be subject to Connecticut income tax. Treatment of pension income paid to a nonresident in subsequent years is under review by the Department at this time.
If I am a Connecticut resident, will Connecticut income tax be withheld from my pension benefits?
Not in 1991. Withholding of Connecticut income tax will be available in 1992.
Must I file estimated income tax returns?
Yes. If your taxable income is more than $1,000 and there is no withholding on that income, you must file estimated tax returns (Form CT-1040ES). For 1991, estimated taxes are to be paid in two installments on October 15, 1991 and February 18, 1992. The return is available at all town halls and public libraries, many post offices and at DRS offices in Hartford, Waterbury, Norwich, East Hartford, Hamden and Bridgeport.
How can I get help in calculating my estimated Connecticut income tax liability?
Department personnel are ready to help. You can reach the Department of Revenue Services at 1-800-392-9463 or 203-297-4900.
What if I am late in filing my estimated tax return?
For 1991, penalty and interest will not be assessed on late estimated income tax payments. However, you will pay penalty and interest if you do not pay the full amount of Connecticut income tax by April 15, 1992.
May I deduct my Connecticut income tax in calculating my federal income tax liability?
Yes. If you itemize your deductions for federal income tax purposes, all payments of Connecticut income tax (or Connecticut capital gains, dividends and interest tax) made on or before December 31, 1991 are deductible for federal income tax purposes.
What about the Connecticut capital gains, dividends and interest tax?
For 1991, these taxes apply, but at reduced rates. These rates will not apply for 1992 and thereafter. For 1991, capital gains and dividend and interest income will be subject both to Connecticut income tax and Connecticut capital gains, dividends and interest tax. In general, only persons whose adjusted gross income is $54,000 or more are subject to the dividend and interest tax but anyone who recognizes a capital gain is subject to the capital gains tax.
If I paid estimated capital gains, dividends and interest tax in June, what other payments are required?
The second estimated payment for those who will owe more than $2,000 in capital gains, dividends and interest tax for 1991 is due on February 18, 1992. Late payment of this estimate, if required, will be subject to penalty and interest.
FOR FURTHER INFORMATION: To order forms and publications or for further information, call the Department of Revenue Services at 860-297-5962 (Hartford area or out-of-state) or 1-800-382-9463 (in-state). Forms and publications may be ordered through voice-mail 24 hours a day by choosing Option 3 on your touch tone telephone.
Electronic Delivery Options: You can also obtain tax forms and publications 24 hours a day from our site on the World Wide Web at http://www.ct.gov/drs. Telecommunications Device for the Deaf (TDD/TT) users only call 860-297-4911 during business hours.