Department of Revenue Services › 12-740(a) INCOME TAX

Regulations of Connecticut State AgenciesSec. 12-707-2. Liability for tax(a) Every employer required under the Income Tax Act to deduct and withhold tax from the wages of an employee is liable for the payment of such tax whether or not it is collected from the employee. If, for e…

Regulations of Connecticut State AgenciesSec. 12-707-3. Withheld taxes trust fund(a) Any amount of Connecticut income tax deducted and withheld constitutes a special fund in trust for the State of Connecticut, Department of Revenue Services. (b) If the Commissioner determines tha…

Regulations of Connecticut State AgenciesSec. 12-708-1. Accounting period(a) The taxable year of every taxpayer required to make a Connecticut income tax return under the Income Tax Act shall be the same as such taxpayer's taxable year for federal income tax purposes. The taxable…

Regulations of Connecticut State AgenciesSec. 12-708-2. Change of accounting period (Repealed) Repealed June 11, 2014.(Effective November 18, 1994; Amended December 19, 2002; Repealed June 11, 2014)Notes: For 2014 repeal, see Sec. 54 of Public Act 14-187. (June 11, 2014)

Regulations of Connecticut State AgenciesSec. 12-708-3. Method of changing accounting period(a) If a person changes an accounting period for Connecticut income tax purposes by reason of a change in such person's federal income tax accounting period, the person shall file, with th…

Regulations of Connecticut State AgenciesSec. 12-708-4. Short taxable year resulting from a change in accounting periodWhere a short taxable year for federal income tax purposes results from a change in accounting period, a person shall, where any of the conditions provided for i…

Regulations of Connecticut State AgenciesSec. 12-708-5. Connecticut returns of trusts, estates or partnerships for short taxable years(a) Where a trust, estate or partnership was not in existence for the entire 12 months of its normal taxable year, the short period for which the …

Regulations of Connecticut State AgenciesSec. 12-708-6. Accounting methods(a) A person shall employ the same method of accounting in determining Connecticut taxable income as such person uses for federal income tax purposes (except as provided in Part III for the special accruals…

Regulations of Connecticut State AgenciesSec. 12-708-7. Change of accounting method(a) A person may not change the method of accounting for Connecticut income tax purposes unless a similar change has been made for federal income tax purposes, except where the person does not have…

Regulations of Connecticut State AgenciesSec. 12-708-8. Change other than from accrual to installment method of accounting(a) If a person’s method of accounting is changed, other than from an accrual to an installment method, there shall be taken into account in computing Connect…

Regulations of Connecticut State AgenciesSec. 12-708-9. Change from accrual to installment method of accounting(a) General. If a person has changed the method of accounting from the accrual to the installment method for federal income tax purposes, any installment payments actual…

Regulations of Connecticut State AgenciesSec. 12-711(b)-1. Connecticut adjusted gross income derived from or connected with sources within this state(a) Connecticut adjusted gross income of a nonresident individual derived from or connected with sources within this state is that …

Regulations of Connecticut State AgenciesSec. 12-711(b)-10. Employees compensated on mileage basis(a) Where an employee's wages are based on mileage, Connecticut adjusted gross income derived from or connected with sources within this state is determined by multiplying the employ…

Regulations of Connecticut State AgenciesSec. 12-711(b)-11. Wages of nonresident seamen(a) (1) The income derived from Connecticut sources of a nonresident individual includes the full amount of compensation paid to such individual for the performance of regularly-assigned duties…

Regulations of Connecticut State AgenciesSec. 12-711(b)-12. Pension or other retirement benefit plans(a) Connecticut adjusted gross income derived from or connected with sources within this state does not include income distributed from a pension or retirement plan to nonresident…

Regulations of Connecticut State AgenciesSec. 12-711(b)-13. Income from vessels(a) Connecticut adjusted gross income derived from or connected with sources within this state does not include charter money or freight or passage payments with respect to a vessel that is operated ex…

Regulations of Connecticut State AgenciesSec. 12-711(b)-14. Prizes, awards and similar payments(a) Except as otherwise provided in subsection (b) of this section, Connecticut adjusted gross income derived from or connected with sources within this state does not include prizes, a…

Regulations of Connecticut State AgenciesSec. 12-711(b)-15. Other methods of apportionment(a) Where the methods provided in this Part do not apportion items of income, gain, loss and deduction in a fair and equitable manner, the Commissioner may require a nonresident individual t…

Regulations of Connecticut State AgenciesSec. 12-711(b)-16. Incentive stock options(a) Connecticut adjusted gross income derived from or connected with sources within this state includes, to the extent provided in this section, income from the disposition of stock that was purcha…

Regulations of Connecticut State AgenciesSec. 12-711(b)-17. Property transferred in connection with the performance of services(a) Connecticut adjusted gross income derived from or connected with sources within this state includes, to the extent provided in this section, income r…

Regulations of Connecticut State AgenciesSec. 12-711(b)-18. Nonqualified stock options(a) Connecticut adjusted gross income derived from or connected with sources within this state includes, to the extent provided in this section, income recognized under section 83 of the Interna…

Regulations of Connecticut State AgenciesSec. 12-711(b)-19. Nonqualified deferred compensation(a) Connecticut adjusted gross income derived from or connected with sources within Connecticut includes nonqualified deferred compensation that is attributable to services performed who…

Regulations of Connecticut State AgenciesSec. 12-711(b)-2. Income and deductions from Connecticut sources—general (Repealed) Repealed June 11, 2014.(Effective November 18, 1944; Repealed June 11, 2014)Notes: For 2014 repeal, see Sec. 54 of Public Act 14-187. (June 11, 2014)

Regulations of Connecticut State AgenciesSec. 12-711(b)-20. Covenants not to compete(a) Connecticut adjusted gross income derived from or connected with sources within Connecticut includes income that is received by a nonresident individual from a covenant not to compete, to the …

Regulations of Connecticut State AgenciesSec. 12-711(b)-3. Items attributable to real or tangible personal property in Connecticut(a) Connecticut adjusted gross income derived from or connected with sources within this state includes items of income, gain, loss and deduction ente…

Regulations of Connecticut State AgenciesSec. 12-711(b)-4. Business, trade, profession or occupation carried on in Connecticut(a) (1) Connecticut adjusted gross income derived from or connected with sources within this state includes items of income, gain, loss and deduction ente…

Regulations of Connecticut State AgenciesSec. 12-711(b)-5. Income from intangible personal property(a) Items of income, gain, loss and deduction derived from or connected with Connecticut sources do not include such items attributable to intangible personal property of a nonresid…

Regulations of Connecticut State AgenciesSec. 12-711(b)-6. Deductions with respect to capital losses, passive activity losses and net operating losses(a) Connecticut adjusted gross income derived from or connected with sources within this state includes deductions entering into t…

Regulations of Connecticut State AgenciesSec. 12-711(b)-7. Compensation not constituting income derived from Connecticut sources(a) Employees of interstate rail carriers, interstate motor carriers and interstate motor private carriers.(1) Compensation paid by certain rail carrier…

Regulations of Connecticut State AgenciesSec. 12-711(b)-8. Rentals and gains from the sale or exchange of real property(a) Income from, and deductions connected with, the rental of real property, and gain and loss from the sale, exchange or other disposition thereof, are not subj…

Regulations of Connecticut State AgenciesSec. 12-711(b)-9. Earnings of salespersons(a) Where compensation of a salesperson, agent or other employee is based in whole or in part upon commissions from sales, Connecticut adjusted gross income derived from or connected with sources w…

Regulations of Connecticut State AgenciesSec. 12-711(c)-1. Income and deductions partly from Connecticut sourcesBecause Connecticut adjusted gross income derived from or connected with sources within this state takes into account only items of income, gain, loss and deduction der…

Regulations of Connecticut State AgenciesSec. 12-711(c)-2. Business, trade, profession or occupation carried on wholly within ConnecticutA business, trade, profession or occupation (as distinguished from personal services as an employee) is carried on by a nonresident individual …

Regulations of Connecticut State AgenciesSec. 12-711(c)-3. Business, trade, profession or occupation carried on partly within and partly without ConnecticutA business, trade, profession or occupation (as distinguished from personal services as an employee) is carried on partly wi…

Regulations of Connecticut State AgenciesSec. 12-711(c)-4. Allocation and apportionment of income from a business, trade, profession or occupation carried on partly within and partly without Connecticut(a) General. If a nonresident individual, or a partnership of which a nonresid…

Regulations of Connecticut State AgenciesSec. 12-711(c)-5. Earnings of nonresident employees and officers rendering personal services within Connecticut(a) (1) When a nonresident employee who is compensated on an hourly, daily, weekly or monthly basis is able to establish the exa…

Regulations of Connecticut State AgenciesSec. 12-711(c)-6. Special rules for security and commodity brokers(a) Security and commodity brokers doing business both within and without Connecticut, as determined under § 12-711(c)-3 of this Part, may apportion the income from such bus…

Regulations of Connecticut State AgenciesSec. 12-711(c)-7. Professional athletes and entertainers(a) Members of professional athletic team.(1) The Connecticut adjusted gross income derived from or connected with sources within Connecticut of a nonresident member of a professional…

Regulations of Connecticut State AgenciesSec. 12-711(d)-1. Military pay(a) Compensation paid by the United States for active service in the armed forces of the United States, performed by an individual not domiciled in Connecticut, does not constitute income derived from Connecti…

Regulations of Connecticut State AgenciesSec. 12-711(f)-1. Purchase and sale for own account(a) Where a nonresident individual who is not a dealer buys and sells property, or buys, sells or writes stock option contracts, or both, for his or her own account, such nonresident indiv…

Regulations of Connecticut State AgenciesSec. 12-712(a)(1)-1. Partnership income and deductions of a nonresident partner derived from Connecticut sources (Repealed) Repealed June 11, 2014.(Effective November 18, 1994; Repealed June 11, 2014)Notes: For 2014 repeal, see Sec. 54 of …

Regulations of Connecticut State AgenciesSec. 12-712(a)(2)-1. Nonresident shareholder's pro rata share of S corporation income derived from or connected with sources within Connecticut(a) The Connecticut adjusted gross income derived from or connected with sources within this sta…

Regulations of Connecticut State AgenciesSec. 12-712(b)-1. Special rules as to nonresident partners(a) In determining whether a nonresident partner's share of partnership income is derived from or connected with Connecticut sources, no effect is given to a provision in a partners…

Regulations of Connecticut State AgenciesSec. 12-712(d)-1. Alternate method of allocation(a) Regulations under Section 12-711(b) and (c) of the general statutes are presumed to result in fair and equitable allocation and apportionment to Connecticut of a nonresident individual pa…

Regulations of Connecticut State AgenciesSec. 12-713(a)-1. Connecticut taxable income derived from or connected with sources within Connecticut of a nonresident trust or estate(a) The Connecticut taxable income derived from or connected with sources within this state of a nonresi…

Regulations of Connecticut State AgenciesSec. 12-713(a)-2. Share of a nonresident trust or estate in distributable net income(a) The share of a nonresident trust or estate in its distributable net income from Connecticut sources is the amount, if any, by which the distributable n…

Regulations of Connecticut State AgenciesSec. 12-713(a)-3. Items not in distributable net income of a nonresident trust or estate(a) In determining a nonresident trust or estate's Connecticut taxable income derived from or connected with sources within this state, there shall be …

Regulations of Connecticut State AgenciesSec. 12-713(a)-4. Items derived from or connected with Connecticut sources of a nonresident trust or estate(a) The source of items of income, gain, loss and deduction of a nonresident trust or estate is determined in accordance with the ap…

Regulations of Connecticut State AgenciesSec. 12-714(a)-1. Share of a nonresident trust, estate or beneficiary in income from Connecticut sources(a) A nonresident trust or estate's taxable income derived from or connected with sources within this state includes its share of feder…

Regulations of Connecticut State AgenciesSec. 12-714(a)-2. Character of items(a) Each of the trust or estate items of income, gain, loss or deduction has the same character for Connecticut income tax purposes as for federal income tax purposes. Where an item is not characterized …