Listed below are deductions from income that can be entered on your Connecticut return:
Exempt Dividends from Certain Qualifying Mutual Funds Derived From U.S. Government Obligations
You may deduct the total amount of exempt dividends received from a qualifying mutual fund that are derived from U.S. government obligations.
Tier 1 and Tier 2 Railroad Retirement Benefits and Supplemental Annuities
If you received rail road benefits or supplemental annuities during the taxable year, you may deduct the amount that is included in your federal AGI but only to the extent that the benefits were not already subtracted from your federal AGI. You are also able to enter railroad unemployment benefits, including sickness pay.
Beneficiary’s Share of Connecticut Fiduciary Adjustment
If your share of income from any estate or trust amount is less than zero on your CT-1040 K-1, you may enter the amount on line 46 of form CT-1040.
Gain on Sale of Connecticut State and Local Government Bonds
You may enter the total of all gains from the sale or exchange of notes, bonds or other obligations from CT used to determine gain (loss) for federal income tax purposes.
Connecticut Higher Education Trust (CHET) Contributions (limited to $5,000; $10,000 for MFJ)
Enter your contributions to a CHET account(s). The subtraction cannot exceed the maximum allowable contribution amounts which are $5,000 for a single taxpayer and $10,000 for Married Filing Joint taxpayers.
Military Retirement Pay
You may subtract income received as a military retirement pay to the extent included in your federal adjusted gross income if you are a retired member of the United States Military or National Guard or if you are a beneficiary receiving survivor benefits.
Connecticut Teacher’s Retirement Pay (50%)
Subtract 50% of the income received from the Connecticut teacher’s retirement system, provided you properly included such income in federal adjusted gross income for federal income tax purposes. You must have received a Form 1099-R from the Connecticut Teachers’ Retirement Board to be eligible for the subtraction.
25% of Section 168(k) Federal Bonus Depreciation Deduction Added Back in Preceding Year
Enter 25% of the § 168(k) federal deduction that you added back on your Connecticut income tax return in the preceding taxable year.
42% of Pension or Annuity Income
If your filing status is single, married filing separately, or head of household with federal AGI for the taxable year of less than $75,000 or married filing jointly with federal AGI of less than $100,000, and you receive income from certain pensions and annuities, you may subtract 42% of this retirement income from your Connecticut return.
For a list and detailed description of "Other Deductions" not shown, please click here.
Click here to view instructions for Form CT-1040.