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The Internal Revenue Service (IRS) released Notice 2020-75 on November 9, 2020, which validates the federal income tax deductibility of the payment of the Connecticut Pass-Through Entity Tax (the PET).
In general, a surviving spouse or other beneficiary or the executor of an estate files IRS Form 1310. If the deceased had a will, the executor named in the will is responsible for this filing.
You are required to pay Connecticut income tax as income is earned or received during the year. You should complete a new Form CT-W4 at least once a year or if your tax situation changes.
Initially, there were six new schedules, but the IRS has since consolidated these down to three: Schedule 1 for additional income and "above the line" deductions. Schedule 2 for additional taxes. Schedule 3 for additional credits and payments.
If you are claiming a refund on behalf of a deceased taxpayer, you must file Form 1310 if: 2022 You are NOT a surviving spouse filing an original or amended joint return with the decedent; and 2022 You are NOT a personal representative (defined later) filing, for the decedent, an original Form 1040, 1040-SR, 1040A, 1040EZ,
The PTE tax will be imposed at a rate of 6.99 percent on either the PTE's taxable income (federal net income under IRC section 702, as modified by Connecticut addition and subtraction adjustments) or alternative tax base.
For taxable years beginning on or after January 1, 2021, and before January 1, 2026, qualifying pass-through entities (PTEs) may annually elect to pay an entity level state tax on income. Qualified taxpayers receive a credit for their share of the entity level tax, reducing their California personal income tax.
Since June 2021, Arizona, California, Colorado, Minnesota and Oregon have enacted elective PTE tax regimes. Bills are pending in other states, including Illinois and Massachusetts.
If you are claiming a refund on behalf of a deceased taxpayer, you must file Form 1310 if: 2022 You are NOT a surviving spouse filing an original or amended joint return with the decedent; and 2022 You are NOT a personal representative (defined later) filing, for the decedent, an original Form 1040, 1040-SR, 1040A, 1040EZ,
Last year, the Connecticut General Assembly enacted the pass-through entity tax at the flat rate of 6.99% on most pass-through entities, including partnerships, S corporations and limited liability companies that are treated as partnerships or S corporations for federal income tax purposes.