Connecticut Additions to Income
Interest on State and Local Government Obligations Other Than Connecticut
Enter the total amount of interest income derived from state and municipal government obligations (other than obligations of the State of Connecticut or its municipalities) which is not taxed for federal income tax purposes. Do not enter interest income derived from government obligations of Puerto Rico, Guam, American Samoa, or U.S. Virgin Islands.
Exempt-Interest Dividends From a Mutual Fund Derived From State or Municipal Government Obligations Other Than Connecticut
Enter the total amount of exempt-interest dividends received from a mutual fund that are derived from state and municipal government obligations other than obligations of the State of Connecticut or its municipalities. If the exempt-interest dividends are derived from obligations of Connecticut and other states, enter only the percentage derived from non-Connecticut obligations. Do not enter exempt-interest dividends derived from government obligations of Puerto Rico, Guam, American Samoa, or U.S. Virgin Islands.
Example: A fund invests in obligations of many states including Connecticut. Assuming that 20% of the distribution is from Connecticut obligations, the remaining 80% would be added back on this line.
Beneficiary’s Share of Connecticut Fiduciary Adjustment
If you have any income from an estate or trust, enter your share of any Connecticut modifications (that is, your share of the Connecticut fiduciary adjustment) that applies to the income shown on Schedule CT-1041B, Part 1, Column 5. Your share of these modifications should be provided to you by the fiduciary. If you are a beneficiary of more than one trust or estate, enter the net amount of all modifications.
Loss on Sale of Connecticut State and Local Government Bonds
Enter the total losses from the sale or exchange of notes, bonds, or other obligations of the State of Connecticut or its municipalities used to determine gain (loss) for federal income tax purposes whether or not the entire loss is used in computing federal adjusted gross income.
Domestic Production Activity Deduction
Enter the amount reported as a domestic production activity deduction on Federal Form 1040, Line 35.
Other Additions to Income
* Add back any treaty income reported on federal Form 1040NR-EZ or Form 1040NR if a nonresident alien. Enter the words “treaty income” in the space provided.
* Add back any loss or deduction of an enrolled member of the Mashantucket Pequot Tribe who resides in Indian country of such tribe or any loss or deduction of an enrolled member of the Mohegan Tribe who resides in Indian country of such tribe where the loss or deduction is derived from or connected with Indian country of the tribe. Enter the words “Mashantucket Pequot Tribe enrolled member” or “Mohegan Tribe enrolled member,” as the case may be.
* Add back any Connecticut income tax deducted on the federal income tax return to arrive at federal adjusted gross income. Do not add back any Connecticut income tax deducted on federal Form 1040, Schedule A.
* Add back any expenses paid or incurred for the production (including management, conservation, and maintenance of property held for the production) or collection of income exempt from Connecticut income tax which were deducted on the federal return to arrive at federal adjusted gross income.
* Add back any amortizable bond premium on bonds producing interest income exempt from Connecticut income tax which premiums were deducted on the federal return to arrive at federal adjusted gross income.
* Add back any interest or dividend income on obligations or securities of any authority, commission, or instrumentality of the United States which federal law exempts from federal income tax but does not exempt from state income taxes.
* Add back to the extent deductible in determining federal adjusted gross income, any interest expenses on indebtedness incurred or continued to purchase or carry obligations or securities (the income from which is exempt from Connecticut income tax).
* Add back the following distributions from an MRA established pursuant to Conn. Gen. Stat. §32-9zz:
• 100% of any distribution from such MRA not used to purchase machinery or equipment for use in Connecticut or manufacturing facilities, as defi ned in Conn. Gen. Stat. §12-81(72), or for workforce
training, development or expansion in Connecticut; and
• 100% of any return of money remaining in the MRA at the end of the fi ve-year period after such account’s creation or organization, including any interest earned.
See Special Notice 2012(6), 2012 Legislative Changes Affecting the Income Tax.
* Also report any additions to federal adjusted gross income required for Connecticut income tax purposes.
To view the 2016 Form CT-1040 instructions click here