Form CT-1065/CT-1120SI guides pass-through entities in filing Connecticut’s composite income tax return, ensuring compliance with state tax laws and regulations for accurate reporting and e-filing requirements․
Overview of Form CT-1065/CT-1120SI
Form CT-1065/CT-1120SI is used by partnerships and S corporations to report and pay Connecticut composite income tax․ It combines federal income with Connecticut-specific adjustments, ensuring compliance with state tax laws․ The form is essential for pass-through entities, including both resident and non-resident members․ filers must report income, deductions, and credits, adhering to Connecticut’s unique tax rules․ Understanding the instructions is crucial for accurate completion, as recent tax law changes may affect filings․ E-filing is mandatory, and filers must adhere to new guidelines to avoid penalties․ This form streamlines tax reporting for pass-through entities operating in Connecticut․
Purpose of the Connecticut Composite Income Tax Return
The Connecticut Composite Income Tax Return, Form CT-1065/CT-1120SI, is designed for partnerships and S corporations to report and pay state income taxes on behalf of all members․ This composite return simplifies tax filing by allowing pass-through entities to report income, deductions, and credits in a single submission․ It ensures non-resident members are taxed appropriately on Connecticut-sourced income․ The form also handles allocations of income and tax credits, ensuring compliance with state tax regulations․ By filing this return, entities fulfill their state tax obligations efficiently, avoiding the need for individual member filings in Connecticut․
Key Changes for Tax Year 2024
Key updates for Tax Year 2024 include revised filing deadlines and updated schedules․ These changes aim to streamline the filing process and ensure compliance with new state tax regulations․
Revised Filing Deadlines
The revised filing deadlines for Tax Year 2024 require careful attention․ Due to significant changes in Connecticut’s tax laws, the development of Form CT-1065/CT-1120SI has been delayed․ While the original deadline for filing remains March 15, 2024, pass-through entities are advised to file for an extension to avoid penalties․ Taxpayers who request an extension will have until October 16, 2024, to submit their returns․ The state recommends filing electronically to ensure timely processing․ Late filings or payments may result in interest and penalties, so it is crucial to adhere to these revised deadlines and seek extensions if necessary to comply with state regulations․
Updated Schedules and Worksheets
The 2024 Form CT-1065/CT-1120SI includes updated schedules and worksheets to reflect changes in Connecticut’s tax laws․ Key updates involve the Connecticut-Sourced Income Deduction Worksheet and Schedule CT-AB for Alternative Base Calculation․ These revisions ensure accurate reporting of pass-through entity income and deductions․ Additionally, Schedule D now requires detailed entries for specific income types, aligning with federal reporting standards․ Taxpayers must ensure all schedules are completed accurately, as incomplete or incorrect filings may trigger reviews․ The updated forms also clarify rounding rules for monetary amounts, requiring inclusion of cents and rounding only the final totals․ Proper completion of these schedules is essential for compliance and avoiding penalties․
Filing Requirements and Eligibility
Pass-through entities and certain businesses must file Form CT-1065/CT-1120SI by March 15th․ Eligibility includes non-resident shareholders and composite income tax returns, requiring e-filing compliance․
Who Must File Form CT-1065/CT-1120SI
Pass-through entities, including partnerships, S corporations, and certain limited liability companies (LLCs), must file Form CT-1065/CT-1120SI․ Non-resident shareholders with Connecticut-sourced income are also required to file․ Entities with income derived from Connecticut sources, such as business operations or real estate, must comply․ Single-member LLCs treated as disregarded entities may need to file if they have Connecticut-sourced income․ The form is used for composite returns, combining individual and entity tax obligations․ Filing is mandatory by the deadline, and extensions may be requested using Form CT-1065/CT-1120SI EXT․ Failure to file may result in penalties and interest on unpaid taxes․
Pass-Through Entities (PTEs) and Composite Returns
Pass-through entities (PTEs), such as partnerships, S corporations, and certain LLCs, are required to file composite returns using Form CT-1065/CT-1120SI․ Composite returns allow PTEs to report and pay taxes on behalf of non-resident shareholders, streamlining the tax filing process․ Connecticut mandates this for entities with Connecticut-sourced income, ensuring compliance with state tax laws․ The composite return consolidates income, deductions, and credits for all eligible members, eliminating the need for individual state filings by non-resident shareholders․ This approach simplifies tax administration and ensures proper allocation of taxes to Connecticut for income earned within the state․
Completing the Return
The return involves three main parts: Part I for entity information, Part II for Schedules A and B, and Part III for Schedule D and additional worksheets․
Part I – Pass-Through Entity Information
Part I requires detailed information about the pass-through entity, including its name, address, EIN, and tax year․ Entities must list all members, their ownership percentages, and federal identification numbers․ This section also includes checkboxes for indicating changes in ownership or business structure․ Additionally, it requires reporting Connecticut-sourced income and any adjustments specific to the state․ Overpayments calculated on Line 8 will be refunded to the pass-through entity․ Ensure all data is accurate, as errors may delay processing․ Properly completing Part I is essential for compliance with Connecticut tax regulations and avoiding potential penalties or delays in refunds․ Use Schedule A and B for further details․
Part II – Schedule A and Schedule B
Part II consists of Schedule A and Schedule B, which are critical for reporting income, deductions, and credits․ Schedule A details the pass-through entity’s income and deductions, aligning with federal forms but adjusting for Connecticut-specific rules․ Schedule B focuses on credits, such as nonresident withholding and carryover losses․ Entities must ensure accuracy in reporting Connecticut-sourced income and properly allocate deductions․ Failure to complete these schedules correctly may result in delays or penalties․ Detailed instructions for each line are provided in the CT-1065/CT-1120SI guide to assist filers in meeting state requirements․ Proper completion ensures compliance with Connecticut tax regulations and accurate reporting of financial data․
Part III – Schedule D and Additional Worksheets
Part III includes Schedule D and additional worksheets, which are essential for detailing specific aspects of the pass-through entity’s tax situation․ Schedule D focuses on income deductions, such as Connecticut-sourced income adjustments and modifications․ Additional worksheets are used to calculate items like alternative base calculations, carryforward losses, and other specialized adjustments․ These sections require precise data entry to ensure compliance with Connecticut tax laws․ Filers must carefully review each line and attach supporting documentation as needed․ Proper completion of Schedule D and worksheets ensures accurate reporting and avoids potential discrepancies in the return․ Detailed instructions are provided to guide filers through complex calculations․
Filing Extensions and Penalties
Use Form CT-1065/CT-1120SI EXT to request an extension․ Late filing or payment may result in interest and penalties, so timely submission is crucial to avoid additional charges․
Requesting an Extension Using Form CT-1065/CT-1120SI EXT
Form CT-1065/CT-1120SI EXT allows pass-through entities to request a six-month extension for filing their Connecticut composite income tax return․ Filers must submit this form by the original deadline to avoid penalties․ The extension provides additional time for filing but does not extend the payment due date․ Interest and penalties may apply if the tax due is not paid by the original deadline․ Filers should complete the federal return (Form 1065 or 1120-S) before requesting the extension․ The form must be filed electronically, and filers are encouraged to consult the Connecticut Department of Revenue Services for specific instructions and requirements․ Timely submission ensures compliance with state tax regulations․
Interest and Penalties for Late Filing or Payment
Interest and penalties apply if the Connecticut composite income tax return is filed late or if the tax due is not paid by the original deadline․ Interest accrues from the due date until payment is made․ A penalty of up to 10% of the unpaid tax may also be imposed․ Combined penalties for late filing and payment can increase the total liability․ Filers should consult the Connecticut Department of Revenue Services (DRS) for specific calculations․ If the tax is paid with the return but filed late, interest and penalties may still apply․ Timely payment and filing are essential to avoid additional charges․
Handling Overpayments and Refunds
Overpayments are refunded to the pass-through entity (PE) based on calculations from Form CT-1065/CT-1120SI, Line 7, processed according to Connecticut state guidelines and procedures․
Line 7 and Line 8 Overpayment Calculations
Line 7 calculates the total overpayment by subtracting the tax due from the payments made․ Line 8 reflects the overpayment amount to be refunded or applied to future taxes․ Ensure accuracy in rounding and reporting, as any overpayment exceeding the tax due will be refunded to the pass-through entity (PE)․ If no overpayment exists, these lines will show zero or a balance due․ Properly completing these lines ensures compliance with Connecticut tax regulations and avoids delays in processing refunds․ Always refer to the official instructions for precise calculations and eligibility criteria․ Accurate reporting is essential for timely refunds or applications․
Refund Process for Pass-Through Entities
The refund process for pass-through entities (PTEs) begins with the calculation of overpayments on Line 7 and Line 8 of Form CT-1065/CT-1120SI․ If the overpayment exceeds $500, the refund is automatically processed․ Refunds are typically issued within 6-8 weeks after the return is filed․ PTEs can request a refund by completing the appropriate section on the return or submitting a written request․ Refunds may be applied to future tax liabilities or issued via check or direct deposit․ Ensure all required documentation is included to avoid delays․ For questions, contact the Connecticut Department of Revenue Services (DRS) for assistance․
Electronic Filing Requirements
Mandatory e-filing for Form CT-1065/CT-1120SI is required for all pass-through entities; Use approved tax software like Drake Tax to submit the return electronically, ensuring compliance with state regulations․
Mandatory E-Filing for Form CT-1065/CT-1120SI
All pass-through entities must electronically file Form CT-1065/CT-1120SI using approved tax software like Drake Tax․ Ensure accurate submission by completing the federal return first (Form 1065 or 1120-S) before entering additional state-specific information․ E-filing streamlines the process, reducing errors and ensuring compliance with Connecticut’s regulations․ Failure to e-file may result in penalties․ Make sure to review the return for completeness and accuracy before submission․ Additional attachments, if required, must be included in the electronic filing․ Always verify the software’s compatibility with Connecticut’s tax system to avoid delays or rejection of the return․
Supplemental Attachments and Supporting Documents
When filing Form CT-1065/CT-1120SI, certain supplemental attachments and supporting documents are required to ensure accurate reporting․ These may include Schedule CT-AB for Alternative Base Calculation, the Connecticut-Sourced Income Deduction Worksheet, and other relevant schedules․ All attachments must be completed in detail and submitted alongside the main return․ Failure to include required documentation may delay processing or result in additional requests from the state․ Ensure all schedules are properly formatted and completed to avoid penalties or discrepancies․ Electronic filing requires these attachments to be submitted in the correct digital format as specified by the Connecticut tax authority․
Supplemental Attachments and Worksheets
Supplemental attachments and worksheets, such as Schedule CT-AB and the Connecticut-Sourced Income Deduction Worksheet, are required to support the information reported on Form CT-1065/CT-1120SI․
Connecticut-Sourced Income Deduction Worksheet
The Connecticut-Sourced Income Deduction Worksheet is used to calculate the deduction for income sourced within Connecticut․ It applies to pass-through entities and their members, ensuring accurate reporting of state-specific income․ This worksheet helps determine the portion of income eligible for deduction, particularly for non-resident members or those with income from Connecticut trades or businesses․ Proper completion is essential for compliance with state tax laws and avoids potential penalties․ It is typically included in Part I, Schedule D of Form CT-1065/CT-1120SI, supporting the composite return filing process․
Alternative Base Calculation (Schedule CT-AB)
Schedule CT-AB is used to calculate the alternative base for pass-through entities (PTEs) filing Form CT-1065/CT-1120SI․ It provides an alternative method to determine taxable income for Connecticut purposes, particularly for entities with complex income structures․ The schedule requires detailed reporting of income, deductions, and adjustments, ensuring compliance with state-specific tax rules․ It is essential for accurately reflecting Connecticut-sourced income and ensuring proper tax liability calculation․ Proper completion of Schedule CT-AB is critical to avoid errors and penalties, as it directly impacts the composite return filing process for PTEs and their members․ Consult the instructions for specific line-by-line guidance․
The CT-1065 instructions guide pass-through entities in accurately filing Connecticut’s composite income tax return, ensuring compliance with state tax laws and e-filing requirements to avoid penalties․
Final Tips for Accurate Filing
Ensure all schedules, including Schedule A, B, and D, are completed accurately․ Verify overpayments on Line 7 and 8 for proper refunds․ Use the Connecticut-Sourced Income Deduction Worksheet for precise calculations․ Double-check the Alternative Base Calculation on Schedule CT-AB․ Review the composite return for non-resident shareholders and ensure e-filing compliance․ Avoid late penalties by filing extensions using Form CT-1065/CT-1120SI EXT․ Consult webinars or DRS resources for guidance․ Ensure all supplemental attachments are included, and review the return for consistency before submission to prevent errors and ensure compliance with Connecticut tax laws․
Resources for Additional Assistance
For further guidance, visit the Connecticut Department of Revenue Services (DRS) website, which offers detailed instructions, webinars, and FAQs․ Review the CT-1065/CT-1120SI Instructions and related schedules․ Utilize the Connecticut-Sourced Income Deduction Worksheet and Schedule CT-AB for specific calculations․ Attend DRS-hosted webinars, such as the one on composite income tax, for hands-on training․ Contact DRS directly for personalized support․ Additionally, refer to IRS resources, like the Instructions for Form 1065, for federal compliance․ Ensure accuracy by cross-referencing state and federal guidelines before filing․