Connecticut (CT) Tax
Editor’s Note: Looking for information on the Connecticut (CT) tax, particularly state income tax? Read here to learn who pays, how to pay and more from the tax experts at H&R Block.
What is CT State Tax?
Similar to federal taxes, CT state tax is self-assessed and are based on a percentage of your income you pay the state government.
What is Taxed in Connecticut?
Are you wondering what is taxed in Connecticut? Connecticut not only imposes a state income tax, which is a tax levied by the state on your income earned within the state or as a resident of CT, but many other types of taxes, including CT property tax, sales tax, and business and professional services.
Who Pays CT Income Tax?
Just like the federal level, states impose additional income taxes on your earnings if you have a sufficient connection to the state. An example would be if you are a resident of the state or you work within the state.
So, if you earn an income connected to CT, you must pay CT income tax. As a traditional W-2 employee, your CT taxes will be drawn on each payroll period automatically. You will see this on your paycheck stub, near or next to the federal taxes.
If you work remotely, you should pay taxes to the state in which the work is performed. Employers will generally also pay taxes on wages paid to these workers to the same state, even if the employer has no physical presence in that state. However, some states may require that workers be taxed based on their employer’s location. These rules may change if you are working from home due to COVID.
How Do You Pay CT State Income Tax?
You can pay Connecticut state income tax online, at the following portal:
If you choose to paper file your return, make your check or money order payable to: “Commissioner of Revenue Services”. Please write the tax year and form name in the memo. You can send the Connecticut state tax form and payment (if due) to the following addresses, based on the form you completed and if a payment is due.
How Much Should You Pay in State Tax?
View the Connecticut tax rates. (LINK TO COME)
When Are CT Tax Returns Due?
The state tax deadlines often coincide with the federal tax deadline, which typically is on April 15, unless it falls on a weekend. (See tax deadlines for 2020.)
How Do You Check If You Paid Taxes in Connecticut?
If you want to make sure your state taxes were paid, contact the Connecticut Department of Revenue Services to see if your payment was received. The contact information is as follows:
Department of Revenue Services
450 Columbus Blvd.
Hartford CT 06103
Phone Number: 860-297-5962
View more information about how to contact the Connecticut Department of Revenue Services.
Deducting CT State Income Tax
If you pay CT state income tax, the IRS allows you to claim a deduction on your federal tax return for what you paid. You can claim a state income tax deduction if you itemize deductions on your federal return.
Because of to the Tax Cuts and Jobs Act, state and local tax deductions are limited to $10,000 per year ($5,000 for married filing separately).
To determine if you should itemize your deductions on your federal return, add up your calendar-year deductible expenses reported on the federal Schedule A, including your state income tax expense, and determine if they are greater than the standard deduction amount for your filing status. Single filers can claim a standard deduction of $12,400 on their federal tax return. So, if you pay more than that with income tax and other itemized deductions, then consider itemizing your taxes.
More Help with Taxes in Connecticut
Understanding your tax obligation is important. What’s even more important is how to deduct Connecticut tax from your federal taxes as an itemized deduction.
So, get help with H&R Block Virtual! With this service, we’ll match you with a tax pro with Connecticut tax expertise. Then, you will upload your tax documents, and our tax pros will do the rest! We can help with your CT taxes, including federal deductions for paying state taxes.
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