Nonresident Working in Connecticut
Connecticut income tax must be withheld from the wages paid to nonresidents who work in Connecticut. If a nonresident of Connecticut works in Connecticut and in another state, the employer should withhold Connecticut income tax on that portion of the employee's wages related to services performed in Connecticut.
Employers who are required to withhold Connecticut income tax are required to provide employees with a copy of Form CT-W4, Employee's Withholding or Exemption Certificate, which must be completed and returned to the employer as soon as possible. Using the information on Form CT-W4 and the Connecticut withholding tables, the employer will determine how much Connecticut tax to withhold from wages.
Nonresidents of Connecticut who are required to file a Connecticut return must complete:
Form CT-1040NR/PY; and
A nonresident who worked in Connecticut is required to file Form CT-1040NR/PY, Nonresident and Part-Year Resident Income Tax Return, if any of the following is true for the taxable year:
- Connecticut income tax was withheld from wages or other payments or
- He or she made estimated payments of income tax to Connecticut or
- He or she meets the gross income test* and had any income from Connecticut sources (such as wages from working in Connecticut) or
- He or she was required to pay the federal alternative minimum tax.
*A nonresident meets the gross income test if his or her total income for the year, including income earned within and without Connecticut exceeds:
$12,000 and you are married filing separately;
$15,000 and you are filing single;
$19,000 and you are filing head of household; or
$24,000 and you are filing jointly or qualifying widow(er) with dependent child.
Credit for Taxes Paid to Connecticut May be Allowed
by the State Where the Employee Lives
In general, the nonresident's state of residence will allow a credit for the income taxes paid to Connecticut for income earned in Connecticut. The nonresident who works in Connecticut will be required to file a nonresident return (Form CT-1040NR/PY) in Connecticut as well as a resident income tax return in his state of residence.
How the Tax is Calculated by a Nonresident
Connecticut law requires a nonresident to calculate his or her tax in the same way as a resident of Connecticut. The nonresident is then required to prorate the tax based upon the percentage of income from Connecticut sources. For example, if the Connecticut income tax calculated on your entire income (as reported on Line 5 of Form CT-1040NR/PY) was $1,000, but you were a nonresident who earned only 50% of your income from wages earned while working in Connecticut, your tax due to Connecticut would be 50% of $1,000, or $500.
The Connecticut method of calculation allows the nonresident to be taxed at the same rate as a resident, taking into account the same exemptions and tax credits available to a resident at the same income level, but only requires payment of the tax in relation to the percentage of total income derived from this state.
When you file the resident income tax return with your home state, you may be able to claim credit for taxes paid to Connecticut for income earned in this state. Please contact the tax department in your state of residence to find out if you will be eligible to claim such a credit.
Form CT-1040NR/PY and required schedules are on the Current Forms Page for downloading.
Nonresident Who Files a Joint Federal Return
If one spouse is a nonresident of Connecticut who has Connecticut source income and is required to file a Connecticut income tax return and the other is a nonresident with no Connecticut source income, the nonresident spouse with Connecticut source income must file a Connecticut income tax return as filing separately for Connecticut only if they file a joint federal return. The spouses may file a joint Connecticut income tax return only if they both consent to be treated as Connecticut nonresidents with Connecticut source income. The nonresident spouse with Connecticut source income is required to file a Connecticut income tax return if his or her share of federal adjusted gross income exceeds $12,000 or, even if his or her share is $12,000 or less if he or she had any Connecticut income tax withheld from wages or payments.
For example, if your spouse is a resident of New York with no Connecticut source income, but you are a resident of New York who has Connecticut source income (such as income from working in Connecticut), you should file Form CT-1040NR/PY as filing separately for Connecticut only if you and your spouse file a joint federal income tax return.
On Line 1 of Form CT-1040NR/PY you should include only your share of the federal adjusted gross income. To determine your share of federal adjusted gross income, you should recompute your federal adjusted gross income by completing a pro-forma federal income tax return as if you were filing as married filing separately for federal income tax purposes.
On Schedule CT-SI, only include the income that is from a Connecticut source. For example, if you worked in Connecticut and the W-2 shows $23,500 in CT wages, enter $23,500 on Line 1 of Schedule CT-SI. If you do not have any other CT source income, enter the same amount on Line 6 of Form CT-1040NR/PY.
When entering the tax on Line 8 of Form CT-1040NR/PY, use the column on the Tax Tables labeled “filing separately”.