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Connecticut State Tax Updates

For the latest news and updates on Connecticut state and local tax

March 23, 2021

Connecticut Update on Extension of Filing Deadline

The Connecticut Department of Revenue Services (DRS) is extending the filing and payment deadline for Connecticut individual income tax returns to Monday, May 17th, 2021 to align with the recently announced extension for federal returns. ( Connecticut filing, payment deadlines for individual income tax returns extended to May 17th, 2021, 03/19/2021.)

March 17, 2021

Connecticut Permits Certain Remote Employees Credit for Taxes Paid to Other States

For the 2020 tax year, Connecticut residents who paid income tax to any other state with a “convenience of the employer rule” will be permitted a credit against their Connecticut individual income tax for such taxes paid to those other states on their income earned while working remotely from Connecticut. The aforementioned credit is signed into law via H.B. 6516, which also permits a credit for the 2020 tax year for Connecticut residents who paid takes to another jurisdiction on income earned while working remotely from Connecticut.

March 3, 2021

Connecticut Aiming To Protect Telecommuters From Double-taxation

A proposed senate bill would expand a credit that has mainly been used by Connecticut residents commuting into New York or Massachusetts for work. Under the proposal, any Connecticut resident who regularly worked out of state prior to March 11, 2020 would be eligible for the credit, which would only be available to telecommuters for the 2020 tax year.

March 21, 2020

CT Filing and Payment Deadline Extended

The Connecticut Department of Revenue Services (DRS) is extending the filing and payment deadline for Personal Income tax returns 90 days, to July 15, 2020. The extension also applies to Connecticut’s estimated income tax payments for the first and second quarters of 2020. Learn more here.

March 2020

DRS Uses Statutory Authority to Grant Extensions

The Connecticut Department of Revenue Services (“DRS”) is using its statutory authority to grant an automatic extension of Connecticut filing deadlines for certain annual tax returns to support businesses during the COVID-19 outbreak. Effectively immediately, business return deadlines are extended until June 15 and Individuals’ returns will follow the IRS relief provisions. Additionally, the filing deadlines for certain annual tax returns due on or after March 15, 2020, and before June 1, 2020, are extended by at least 30 days. Payments associated with these returns are extended to the corresponding due date in June.

The impacted returns and the associated filing dates and payment deadlines are below:

  • 2019 Form CT-1065/CT-1120 SI Connecticut PassThough Entity Tax Return: Filing date extended to April 15, 2020; payment deadline extended to June 15, 2020.
  • 2019 Form CT-990T Connecticut Unrelated Business Income Tax Return: Filing date extended to June 15, 2020; payment deadline extended to June 15, 2020.
  • 2019 Form CT-1120 and CT-1120CU Connecticut Corporation Business Return: Filing date extended to June 15, 2020; payment deadline extended to June 15, 2020.

For those preparing the Connecticut income tax (Form CT-1040) returns due April 15, DRS will adjust due dates for filing and payment of state income taxes to align with any specific, actionable announcement from the Internal Revenue Service regarding due dates for the filing and payment of federal income taxes.

More on Taxes and the Coronavirus Pandemic.

Disclaimer: Please note this is the information that is readily available at this time, it is subject to change so please consult your Withum tax advisor.

July 2019

Corporate and Pass-Through Entities

Beginning January 1, 2020 the bi-annual business entity tax will be eliminated. The pass-through entity tax credit will be reduced to 87.5% from 93.01%. The filing fee for pass-through entities will go up to $80 from $20 beginning July 1, 2020.

Sales and Use Tax

The threshold for economic nexus has been reduced to $100,000 in gross receipts and 200 transactions, down from the $250,000 threshold. This will be in effect July 1, 2019.

SALT Updates

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