DRS: IP 92(9.4), Is My Connecticut Withholding Correct?

 

STATE OF CONNECTICUT
DEPARTMENT OF REVENUE SERVICES

450 Columbus Blvd
Hartford CT 06103
 
 
 
 
 
 

 
 

This Informational Publication is superseded by IP 92(9.5)

IP 92(9.4)

Is My Connecticut Withholding Correct?


Introduction: The purpose of this publication is to remind employees to check the amount of their Connecticut income tax withholding. Taxpayers are expected to prepay Connecticut income tax on wages through withholding. If you will owe more than $200 in Connecticut income tax over and above what has been withheld from your income for the 1997 taxable year, you may be subject to interest at the rate of 1% per month or fraction thereof.


Reasons Your Withholding May Be Incorrect: Your withholding may be incorrect if any of the following applies:

  • you are married, filing jointly, and both you and your spouse work;
  • you have more than one job at a time;
  • you have income that is not subject to Connecticut income tax withholding (e.g., most nonwage income including interest, dividends, and capital gains).

Check Your Withholding: Even if you previously completed a Form CT-W4, Employee's Withholding or Exemption Certificate, you should check each year to see if you will have enough tax withheld for the year. You will need to compare the total tax to be withheld from your pay for the year with what you expect your Connecticut income tax will be for the year. This publication will help you to do this.


Information You Will Need: You will need a pay statement for a full pay period showing the amount of Connecticut income tax withheld and a copy of your most recently filed Form CT-W4, Employee's Withholding and Exemption Certificate. (Your employer has your Form CT-W4 on file and can provide you with a copy.)


How To Check Your Withholding:

Step 1

Look at Line 1 of your most recently filed Form CT-W4 to find out your current filing status*.

  1. If your filing status for 1997 remains the same, go on to Step 2
  2. If your filing status is different, complete a new Form CT-W4 using your correct filing status. Read all instructions for Form CT-W4 carefully to ensure that your withholding is correct. File this form with your employer. (It is not necessary to go on to Step 2.)

Step 2

Use the 1997 Income Tax and Withholding Worksheet to see if you are having the right amount of Connecticut income tax withheld. If you are married filing jointly, you must include your combined income and your combined withholding when completing the worksheet.

* New Hires: Contact your employer's payroll officer to obtain the amount of Connecticut income tax to be withheld from your wages based upon the correct filing status.


Form CT-W4, Employee's Withholding or Exemption Certificate

To Increase Your Withholding: If you wish to increase your withholding to include the additional amount on Line 15 of the worksheet, you should complete a new Form CT-W4 by following the steps below:

  1. Enter your filing status on Line 1 of the new Form CT-W4. (The filing status should be the same as the filing status on your most recently filed Form CT-W4.)
  2. Enter on Line 2, the amount from Line 15 of the worksheet

NOTE: If there was an amount on Line 2 of your most recently filed Form CT-W4, combine that amount with the amount on Line 15 of the worksheet and enter the total on Line 2 of your new Form CT-W4. If there was an amount on Line 3 of your most recently filed Form CT-W4, combine that amount with the amount on Line 15 of the worksheet and enter the new amount on Line 2 (if a positive amount) or enter on Line 3 (if a negative amount).

Example: If Line 15 of the Income Tax and Withholding Worksheet shows an additional amount to be withheld of $5.00 and your most recently filed Form CT-W4 showed $3.00 on Line 2, enter $8.00 as a net addition to withholding on Line 2 of your new Form CT-W4.

  1. Enter all other required information on Form CT-W4.
  2. Give the new Form CT-W4 to your employer right away so that the additional amount will be withheld by the first pay period covered on Line 15.

More Than One Job: If you have more than one job, you can adjust your withholding for one or more of the jobs as long as you ensure that enough total tax will be withheld from the wages from all your jobs.


Estimated Income Taxes: If you have income that is not subject to withholding, you may wish to make estimated income tax payments instead of increasing your withholding. IP 92(5.6), Estimated Income Taxes, explains this option. Estimated income tax payments are made by using Form CT-1040ES, 1997 Estimated Income Tax Payment Coupon for Individuals.


To Decrease Your Withholding: If too much Connecticut income tax will be withheld in 1997, you will receive a refund when you file your 1997 Connecticut income tax return. You may, however, decide to decrease your Connecticut income tax withholding by following the steps listed in this publication.

IMPORTANT: Before decreasing the amount to be withheld, be sure you have enough Connecticut income tax withheld to meet your Connecticut income tax liability. Underwithholding may result in interest charges. You may request a copy of IP 92(5.6), Estimated Income Taxes, for further information on the application of interest charges to underestimated income tax.

If you wish to decrease your withholding by the amount on Line 15 of the worksheet, you should complete a new Form CT-W4 as follows:

  1. Enter your filing status on line 1 of the new Form CT-W4. (The filing status should be the same as the filing status on your most recently filed Form CT-W4.)
  2. Enter on Line 3 of the new Form CT-W4, the amount from Line 15 of the worksheet.

NOTE: If there was an amount on Line 2 of your most recently filed Form CT-W4, combine that with the amount on Line 15 of the worksheet and enter the new amount on Line 2 (if a positive amount) or on Line 3 (if a negative amount). If there was an amount on Line 3 of your most recently filed Form CT-W4, combine that amount with the amount on Line 15 and enter the new amount on Line 3 of your new Form CT-W4.

Example: If Line 15 of the Income Tax and Withholding Worksheet shows you should reduce your current withholding by $5.00 and your previously filed Form CT-W4 showed $3.00 on Line 2, enter $2.00 as the net reduction on Line 3 of your new Form CT-W4.

  1. Enter all other required information on Form CT-W4.
  2. Give the new Form CT-W4 to your employer right away so that the corrected amount will be withheld by the first pay period covered on Line 15.

Effect Of This Documents: An Informational Publication (IP) is a document that addresses frequently-asked questions about a current Department position, policy or practice, usually in a less technical, question-and-answer format.


Effect On Other Documents: IP 92(9.3) is superseded.


Related Forms and Publications:

Form CT-1040

Connecticut Resident Income Tax Return

Form CT-1040NR/PY

Connecticut Nonresident or Part-Year Resident Income Tax Return

IP 92(5.6)

Estimated Income Taxes

Form CT-1040ES

1997 Estimated Income Tax Payment Coupon for Individuals

Form CT-W4

Employee's Withholding or Exemption Certificate
 

For Further Information: To order forms and publications or for further information, call the Department of Revenue Services at 860-297-5962 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 Web home page at http://www.ct.gov/drs.  Telecommunications Device for the Deaf (TAD/TT) users only call 860-297-4911 during business hours.


1997 INCOME TAX AND WITHHOLDING WORKSHEET

(Line Instructions)

1. Total adjusted gross income you expect in 1997 1. _______________
2. Allowable Connecticut adjustments ((See instructions for Schedule 1, Form CT-1040 or Form CT-1040NR/PY for information about allowable adjustments.) 2. _______________
3. Connecticut adjusted gross income
(Combine Lines 1 and 2 and enter total on Line 3)
Note: Nonresidents and part-year residents: Enter your income from Connecticut sources if greater than your Connecticut adjusted gross income.
3. _______________
4. Connecticut income tax (See instructions) 4. _______________
5. Apportionment factor (Connecticut residents enter 1.0000.)
Nonresidents and part-year residents:
See instructions
5. _______________
6. Multiply Line 5 by Line 4 6. _______________
7. Net credit for income taxes due to other jurisdictions (See instructions) 7. _______________
8. Subtract Line 7 from Line 6 8. _______________
9. Estimated Connecticut alternative minimum tax (See instructions) 9. _______________
10. Add Line 8 and Line 9 10. _______________
11. Adjusted net Connecticut minimum tax credit (See instructions) 11. _______________
12. Subtract Line 11 from Line 10 12. _______________
13. Estimate of 1997 Connecticut income tax withholding and payments (See instructions) 13. _______________
14. Subtract Line 13 from Line 12 14. _______________
15. Amount to adjust withholding for each pay period (See instructions) 15. _______________  
CAUTION: If you expect to owe more than $200 in Connecticut income tax after subtracting Connecticut income tax withheld, you may be subject to interest on the underpaid amount. Generally, if you do not prepay (in timely estimates and/or withholding) the lesser of 100% of the income tax shown on your 1996 Connecticut income tax return, (if you filed a 1996 Connecticut income tax return that covered a 12 month period), or 90% of the income tax shown on your 1997 Connecticut income tax return, you may owe interest at the rate of 1% per month or fraction thereof of the underpaid amount. To avoid interest charges, be sure your withholding is as accurate as possible.

LINE INSTRUCTIONS

Line 1: Enter the amount you estimate to be your 1997 federal adjusted gross income. You may use federal Form 1040ES as a worksheet to determine federal adjusted gross income.

Line 2: Enter the total of your estimated allowable Connecticut adjustments. (See instructions for Schedule 1, Form CT-1040 or Form CT-1040NR/PY for information about allowable adjustments.)

Line 3: NONRESIDENT AND PART-YEAR RESIDENTS ONLY: If your Connecticut source income is greater than your Connecticut adjusted gross income, enter your Connecticut source income on this line.

Line 4: To calculate your estimated tax, complete the tax calculation schedule below.

Tax Calculation Schedule (Line 4)

a. Enter the amount from Line 3 of the Income Tax and Withholding Worksheet a.______________
b. Enter exemption (From Table A - Exemptions) b.______________
c. Connecticut taxable income (Subtract Line b from Line a - If less than 0, enter 0) c.______________
d. Connecticut income tax - (From Table B - Connecticut Income Tax) d.______________
e. Enter credit percentage (From Table C - Personal Tax Credits) e.______________
f. Multiply the amount on Line d by the percentage on Line e f.______________
g. CONNECTICUT INCOME TAX (Subtract Line f from Line d). Enter this amount on Line 4 of the Income Tax and Withholding Worksheet. g.______________

Line 5: APPORTIONMENT FACTOR: Nonresidents and part-year residents, if your Connecticut source income is greater than or equal to your Connecticut adjusted gross income enter 1.0000. If your Connecticut source income is less than your Connecticut adjusted gross income, complete the following calculation and enter the result on Line 5.

Income from Connecticut Sources

--------------------------------------------------

=

Line 5

CT Adjusted Gross Income (Line 3)

Do not enter a number that is less than zero or greater than 1. If the result is less than zero, enter 0; if greater than 1, enter 1.0000. Round to four decimal places.

Line 7: RESIDENT AND PART-YEAR RESIDENTS ONLY: Enter estimated allowable net credit for income taxes paid to other jurisdictions. Enter 0, if not applicable. (See instructions for Schedule 2, Form CT-1040 or Form CT-1040NR/PY.)

Line 9: If you expect to owe federal alternative minimum tax in 1997, you may also owe Connecticut alternative minimum tax. Enter your estimated Connecticut alternative minimum tax liability. (See instructions for Form CT-6251, Connecticut Alternative Minimum Tax Return.)

Line 11: Enter estimated adjusted net Connecticut minimum tax credit. Enter 0 if you are not entitled to a credit or if you enter an amount on Line 9. (See instructions for Form CT-8801, Credit for Prior Year's Connecticut Minimum Tax for Individuals, Trusts and Estates.)

Line 13: Complete the Withholding and Payment Schedule (below) to estimate your 1997 Connecticut income tax withholding and payments:

WITHHOLDING AND PAYMENT SCHEDULE (Line 13)
a. Enter the total amount of Connecticut income tax withheld to date in 1997.
(Include Connecticut income tax withheld by all employers if you have more than one job.)
a. _______________
b. For each job, multiply the amount of Connecticut income tax withheld each pay period by the number of pay periods remaining in 1997 and enter the total amount to be withheld for all jobs.
NOTE: New Hires: Multiply the amount of Connecticut income tax to be withheld for each pay period by the number of pay periods remaining in 1997
b. _______________
c. Enter individual estimated income tax paid and expected to be paid for 1997 with Form CT-1040ES and any overpayment applied from your 1996 Connecticut income tax return. c. _______________
d. Total Connecticut withholding and payments. (Add lines a, b, and c.) Enter this amount on line 13 of the Income Tax and Withholding Worksheet. d. _______________

Line 15: Divide the amount on Line 14 by the number of pay periods remaining in 1997. If the result is a positive amount, you may be underwithheld. (See To Increase Your Withholding) If the result is a negative amount, you may be overwithheld. (See To Decrease Your Withholding)


Created: 4/25/97 Updated: 8/13/97