Schedule CT-1040AW, Part-Year Resident Income Allocation - CT.gov - ct 2025

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The law fully exempts qualifying pension and annuity income (including 401(k), 403(b), or 457(b) plans) from income tax for taxpayers with federal AGIs below (1) $75,000 for single filers, married people filing separately, and heads of household or (2) $100,000 for married people filing jointly.
If you are a nonresident or a part‑year resident, your tax liability is computed based upon the greater of your Connecticut adjusted gross income or your total income from Connecticut sources. You must calculate the tax in the same manner as a resident individual.
The state of Connecticut requires you to pay taxes if you are a resident or nonresident who receives income from a Connecticut source. State income tax rates range from 3.0% to 6.99%, and the sales tax rate is 6.35%.
The changes enacted in 2024 will see a decrease in the two lowest rates: The 3% rate on the first $10,000 earned by single filers and the first $20,000 by joint filers will drop to 2%. The 5% rate on the next $40,000 earned by single filers and the next $80,000 by joint filers will drop to 4.5%.
Connecticut is not tax-friendly toward retirees. Social Security income is partially taxed. Withdrawals from retirement accounts are fully taxed. Wages are taxed at normal rates, and your marginal state tax rate is 3.00%.
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While Connecticut technically still taxes Social Security benefits, many residents wont pay these state taxes in retirement. Whether you pay state income tax on Social Security in the Constitution State depends on your adjusted gross income (AGI) and your filing status.
If you are a part-year resident, you may not elect to be treated as a resident individual. If you are a part-year resident and you meet the requirements for Who Must File Form CT-1040NR/PY for the 2023 taxable year, you must file Form CT-1040NR/PY, Connecticut Nonresident and Part-Year Resident Income Tax Return.
You must file a Connecticut income tax return if your gross income for the 2023 taxable year exceeds: $12,000 and you are married filing separately; $15,000 and you are filing single; $19,000 and you are filing head of household; or.

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