TAX NEWS - January 2010

Connecticut: Important 4th Quarter Income Tax Estimated Payment Information for Individuals

Effective for taxable year 2009, the highest marginal tax rate for Connecticut income tax purposes has increased to 6.5% for the following individuals:

- Individuals whose Connecticut filing status is "Single" or "Separately" and whose Connecticut taxable income is more than $500,000.
- Individuals whose Connecticut filing status is "Head of Household" and whose Connecticut taxable income is more than $800,000.
- Individuals whose Connecticut filing status is "Jointly" or "Qualifying Widow(er)" and whose Connecticut taxable income is more than $1 million.

If you are within one of the above income brackets and you are required to make estimated income tax payments for the 2009 taxable year, your January 15, 2010 estimated payment must take into account the 6.5% rate (the tax rate may have been changed).  To calculate your January 15, 2010 estimated payment amount to comply with the 6.5% rate, please follow these steps:

- Step 1. Complete Lines 1-17 on the 2009 Estimated Connecticut Income Tax Worksheet using the updated Tax Calculation Schedule provided on this web site.
- Step 2. Subtract from Line 17 any estimated income tax payments made which were due on April 15, 2009, June 15, 2009 and September 15, 2009.
- Step 3. The difference is the amount of your January 15, 2010 estimated payment.

Reminder:  Your estimated payments are based on your required annual payment, which is the lesser of 90% of the income tax shown on your 2009 Connecticut income tax return, calculated using the 6.5% rate, where applicable, OR 100% of the income tax shown on your 2008 Connecticut income tax return that covered a 12-month period.