If you are filing a Resident Connecticut return and also prepare a Nonresident return for another state, the program will automatically calculate the allowable credit for you. A manual entry into the program will override the program calculations. You can enter this credit within your account by following the instructions below:
- State Section
- Credit for Taxes Paid to Another State
A Connecticut resident who works in another state that imposes an income tax will be required to file a Nonresident income tax return for the other state and a Resident return for Connecticut. The Connecticut resident will receive credit from Connecticut for income tax paid to the other state on income earned for services performed in the other state.
The credit allowed will be the lesser of the tax paid to the other state or the tax which Connecticut imposes on the resident's out-of-state wages.
Qualifying Income Tax Payments
- Qualifying income tax payments are income taxes you actually paid on income:
- Derived from or connected with sources within the qualifying jurisdiction; and
- Subject to tax in the qualifying jurisdiction
Income Derived From or Connected With Sources Within a Qualifying State (Jurisdiction)
- Compensation received for personal services performed in a qualifying jurisdiction;
- Income from a business, trade, or profession carried on in a qualifying jurisdiction;
- Gambling winnings from a state-conducted lottery; or
- Income from real or tangible personal property situated in a qualifying jurisdiction.
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