Bulletin #10

Taxpayer's Information Service
Revised 8/1/85

Estate Income Tax

Effective date - The tax applies to any fiscal year beginning on or after January 1, 1982.

Taxpayer - The fiduciary of any resident estate or non-resident estate subject to tax under Sec. 12-405a to 12-405l of the Connecticut General Statutes.

Resident Estate - The estate of a decedent who, at the time of death, was domiciled in this state.

Non-Resident Estate - This means any estate that cannot qualify as a resident estate, as defined above.

Taxable Income - This means taxable income of any estate for the taxable year as determined for purposes of Federal Income Tax in accordance with Internal Revenue Form 1041, including in such determination the deduction from total income related to income distribution and each other deduction allowed in computing the Federal Income Tax Liability of such estate for the taxable year.

Taxable Income of a Non-Resident Estate - This means that portion of the taxable income of such estate for the taxable year which is derived from or connected with sources within the state. The source of items of income, gain, loss or deduction shall be determined in accordance with regulations prescribed by the Commissioner in conformity with:

1. Items of income, gain or loss derived from or connected with sources within this state are those items attributed to (A) the ownership or disposition of any interest in real or tangible personal property in this state or (B) a business, trade or profession or occupation carried on in this state.
2. Income from intangible personal property, including annuities, dividends, interest or gains from the distribution of intangible personal property shall constitute income derived from sources within this state only to the extent that such income is from property employed in a business, trade, profession or occupation carried on in this state.

Taxable Year - This means a calendar year or fiscal year established with the Internal Revenue Service.

Tax Rate - 10% of taxable income in excess of $20,000.00

Note: Taxable Income on which this tax is paid shall not be taxed under Chapter 224. (Capital Gains, Dividends and Interest Income Taxes)

Tax Return Due Date - The Return is due on the 15th day of the 4th month after the close of the income year. (April 15th for calendar year taxpayer)

Penalty for Late Payment - 10% of the tax due or $50, whichever is greater.

Interest on Late Payment - 1 1/4% per month or fraction thereof.

Extension - The Commissioner may, for reasonable cause, grant a 4-month extension for the filing of a return. A Tentative Return (OP-231TA) must be filed on or before the 15th day of the 4th month following the close of the income year and include payment of the estimated tax.

Credit for Resident Estates - If a resident estate is taxable by another state by reason of income derived from a source within that state, the fiduciary must file proof of payment of income tax to other states. Credit taken must not exceed the Connecticut tax to which such income would be subject.

PLEASE NOTE THE FOLLOWING NEW INFORMATION ABOUT DRS.

FOR FURTHER INFORMATION: To order forms and publications or for further information, call the Department of Revenue Services at 860-297-5962 (Hartford area or out-of-state) or 1-800-382-9463 (in-state). Forms and publications may be ordered through voice-mail 24-hours a day by choosing Option 3 on your touch tone telephone.

Electronic Delivery Options: You can also obtain tax forms and publications 24-hours a day from our Web home page or through the Department's fax retrieval system by calling the DRS TAX-FAX at 860-297-5698 from the handset attached to your fax machine. Telecommunications Device for the Deaf (TDD/TT) users only call 860-297-4911 during business hours.