DRS: AN 2010(7), Taxability of Social Security Benefits for Connecticut Income Tax Purposes

 

STATE OF CONNECTICUT
DEPARTMENT OF REVENUE SERVICES

25 Sigourney Street
Hartford CT 06106-5032
 
 
 
 
 
 

 
 
 
This Announcement has been modified and superseded by AN 2012(4)
 
AN 2010(7)
 
Taxability of Social Security Benefits for Connecticut Income Tax Purposes
 

 

Purpose: This Announcement provides additional information to Social Security recipients in determining if any Social Security benefits are subject to Connecticut income tax.

Any reference in this publication to a spouse also refers to a party to a civil union recognized under Connecticut law or a spouse in a marriage recognized under Public Act 2009-13. Any reference to filing jointly includes filing jointly for federal and Connecticut and filing jointly for Connecticut only. Likewise, filing separately includes filing separately for federal and Connecticut and filing separately for Connecticut only.

 


 
Effective Date: Effective upon issuance.
 

 
Statutory Authority: Conn. Gen. Stat. §12-701(a)(20).
 

Taxability of Social Security Benefits for Federal Income Tax Purposes: In general, for federal income tax purposes, taxpayers are advised to use the worksheet in the instruction booklet of the federal form they are filing to determine if any of their Social Security benefits are subject to federal income tax. Taxpayers who would be eligible to file federal Form 1040EZ, but who have determined that any part of their benefits are taxable, may not use federal Form 1040EZ and, instead, must use federal Form 1040A or Form 1040.

You may not use the worksheet in the instructions to federal Form 1040A or Form 1040 if any of the following exceptions apply:

  • You made contributions to a traditional IRA for the taxable year and you or your spouse were covered by a retirement plan at work or through self-employment. If this is the case, you must use the worksheet in federal Publication 590, Individual Retirement Arrangements (IRAs) (including Roth IRAs and Education IRAs), to determine if any of your Social Security benefits are subject to federal income tax.
  • You repaid any benefits during the taxable year and the total repayments reported on your Form SSA-1099, box 4, were more than the total benefits reported on your Form SSA-1099, box 3. If this is the case, none of your benefits are taxable. You may be able to take an itemized deduction for part of the excess repayments if the repayments were for benefits you included in gross income in an earlier year. Instead, you are advised to see federal Publication 915, Social Security and Equivalent Railroad Retirement Benefits, for more information.
  • You filed federal Form 2555, Form 2555-EZ, Form 4563, or Form 8815 or excluded employer-provided adoption benefits or income from sources within Puerto Rico. Instead, use the worksheet in federal Publication 915, Social Security and Equivalent Railroad Retirement Benefits.

 

Calculating the Amount of Social Security Benefits Subject to Connecticut Income Tax for Taxpayers Using the Worksheets in the Federal Form 1040 or Form 1040A Instructions: If you used the worksheets in the instructions for federal Form 1040A or Form 1040, refer to the instructions for Form CT-1040, Connecticut Resident Income Tax Return, Line 42, or Form CT-1040NR/PY, Connecticut Nonresident or Part-Year Resident Income Tax Return, Line 44, to determine if any federally taxable Social Security benefits are subject to Connecticut income tax.

Your Social Security benefits are fully exempt from Connecticut income tax if your required filing status is:

  • Single or filing separately and your federal adjusted gross income as reported on Line 1 of your Connecticut income tax return is less than $50,000; or
  • Filing jointly, qualifying widow(er), or head of household and your federal adjusted gross income as reported on Line 1 of your Connecticut income tax return is less than $60,000.

Civil union partners or spouses in a marriage recognized under Public Act 2009-13 must recalculate their federal adjusted gross income as if, for federal tax purposes, they were allowed and elected to file as married filing jointly or married filing separately.

Taxpayers who report a federal adjusted gross income above these amounts must complete the Connecticut Social Security Benefit Adjustment Worksheet in the instruction booklet for Form CT-1040 or Form CT-1040NR/PY.

 


 

Using Worksheet 3 in Federal Publication 590: If you used Worksheet 3 in federal Publication 590 to determine if your Social Security benefits are subject to federal income tax, use the following lines from that worksheet when completing the Connecticut Social Security Benefit Adjustment Worksheet:

  • Line A: Use Line 4 from federal Worksheet 3;
  • Line B: Use    Line 10 from federal Worksheet  3; and
  • Line E: Use Line 19 from federal Worksheet 3.

 

Using Worksheet 1 or Worksheet 4 in Federal Publication 915: If you used Worksheet 1 in federal Publication 915 and you filed federal Form 2555, Form 2555-EZ, Form 4563, or Form 8815 or you excluded employer-provided adoption benefits or you have income from sources within Puerto Rico, use the following lines from that worksheet when completing the Connecticut Social Security Benefit Adjustment Worksheet:

  • Line A: Use Line 1 from federal Worksheet 1;
  • Line B: Use Line 10 from federal Worksheet 1. However, if filing separately and you lived with your spouse at any time during the taxable year, use Line 8 from federal Worksheet 1; and
  • Line E: Use Line 19 from federal Worksheet 1.

If you used Worksheet 4 in federal Publication 915 to determine if any Social Security benefits are subject to federal income tax under the lump-sum election method, use the following lines from that worksheet when completing the Connecticut Social Security Benefit Adjustment Worksheet:

  • Line A: Use Line 1 from federal Worksheet 4;
  • Line B: Use Line 10 from federal Worksheet 4. However, if filing separately and you lived with your spouse at any time during the taxable year, use Line 8 from federal Worksheet 4; and
  • Line E: Use Line 21 from federal Worksheet 4.

However, if you cannot use the lump-sum election method, you must use Worksheet 1 in federal Publication 915.

 


 
Effect on Other Documents: Announcement 2007(6), Taxability of Social Security Benefits for Connecticut Income Tax Purposes, is modified and superseded and may not be relied upon on or after the date of issuance of this Announcement.
 

 

Effect of This Document: Announcements alert taxpayers to new developments (other than newly enacted or amended Connecticut or federal laws or newly released judicial decisions), including new administrative positions, policies, or practices.

 


 

For Further Information: Call DRS during business hours, Monday through Friday:

  • 1-800-382-9463 (Connecticut calls outside the Greater Hartford calling area only); or
  • 860-297-5962 (from anywhere).

TTY, TDD, and Text Telephone users only may transmit inquiries anytime by calling 860-297-4911.

 


 
Forms and Publications: Visit the DRS website at www.ct.gov/DRS to download and print Connecticut tax forms and publications.
 

 

Paperless Filing/Payment Methods (fast, easy, free, and confidential):

Business and individual taxpayers can use the Taxpayer Service Center (TSC) at www.ct.gov/TSC to file a variety of tax returns, update account information, and make payments online.

File Electronically: You can choose first-time filer information and filing assistance or log directly into the TSC to file returns and pay taxes.

Pay Electronically: You can pay taxes for tax returns that cannot be filed through the TSC. Log in and select the Make Payment Only option. Designate a payment date up to the due date of the tax and mail a paper return to complete the filing process.
 

 

DRS E-Alerts Service: Get connected to the latest news from DRS. Receive notification by email of changes to legislation, policies, and procedures.

DRS E-Alerts provide information for employer’s withholding tax, News – Press Releases, and Top 100 Delinquency List. Visit the DRS website at www.ct.gov/DRS and select e-alerts from the left navigation bar.

 


AN 2010(7)
Income Tax
Social Security Benefits Adjustment
Issued: 12/30/2010