Form Ct 6251 – Fill Out and Use This PDF

Purpose

Taxpayers who are subject to and required to pay the federal alternative minimum tax are subject to the Connecticut alternative minimum tax. Use this form to calculate your Connecticut alternative minimum tax liability and attach it directly behind your Connecticut income tax return.

Taxpayers who do not have a federal alternative minimum tax liability are not required to complete this form.

Who Must File This Form

You are required to file Form CT-6251, Connecticut Alternative Minimum Tax Return - Individuals, if either of the following conditions is true for the 2010 taxable year:

You were a Connecticut resident or part-year resident and had a federal alternative minimum tax liability; or

You were a Connecticut nonresident with a federal alternative minimum tax liability and you had Connecticut-sourced income.

If you meet one of the requirements above, you must file Form CT-6251 even if your Connecticut alternative minimum tax is zero.

What Is the Connecticut Alternative Minimum Tax

The Connecticut alternative minimum tax is a tax imposed on certain individuals, trusts, and estates in addition to their regular income tax. The tax is computed on the lesser of 19% of the adjusted federal tentative minimum tax or 5.5% of the adjusted federal alternative minimum taxable income.

What Is the Adjusted Federal Tentative Minimum Tax

The adjusted federal tentative minimum tax is your federal tentative minimum tax with certain Connecticut modifications.

Part-Year Residents and Nonresidents

Connecticut part-year residents and nonresidents must first compute the Connecticut minimum tax as if they were Connecticut residents, then apportion their Connecticut minimum tax.

Credits

Connecticut residents and part-year residents are allowed a credit for minimum taxes paid to a qualifying jurisdiction on the income taxed by both Connecticut and that jurisdiction. The credit may not exceed the amount of tax otherwise due.

You may be able to claim a credit against your Connecticut income tax for Connecticut alternative minimum tax paid in a prior year. See the instructions to Form CT-8801, Credit for Prior Year Connecticut Minimum Tax for Individuals, Trusts, and Estates.

Filing Status

Your filing status on Form CT-6251 must match the Connecticut income tax filing status as reported on the front of Form CT-1040, Connecticut Resident Income Tax Return, or Form CT-1040NR/PY, Connecticut Nonresident and Part-Year Resident Income Tax Return. Any reference in these instructions to a spouse also refers to a party to a civil union recognized under Connecticut law.

Any reference in these instructions to filing jointly includes filing jointly for federal and Connecticut and filing jointly for Connecticut only. Likewise, filing separately includes filing separately for federal and Connecticut and fi ling separately for Connecticut only.

Generally, your filing status for Connecticut income tax purposes must match your federal income tax filing status for the year. However, if you are a civil union partner or a spouse in a marriage recognized under Public Act 2009-13, your filing status for Connecticut income tax purposes will not match your federal income tax fi ling status for the year.

For more information, see Spouses With Different Residency Status in the instructions to Form CT-1040 or Form CT-1040NR/PY.

If you and your spouse are filing a joint federal income tax return and you file separate Connecticut income tax returns, either because you qualify and elect to do so or because you are required to do so, the federal rules for allocating income apply. You must recalculate your federal alternative minimum tax liability as if your filing status for federal income tax purposes was single. If upon your recalculation you would have had a federal alternative minimum tax liability, you are subject to Connecticut alternative minimum tax and you are required to calculate Form CT-6251 as a single individual.

Where the calculation of any individual federal items are subject to limitations (for example, alternative tax net operating loss deduction); the items may have to be recalculated if Connecticut modifications apply.

Name and Social Security Number

Enter your name and Social Security Number (SSN) as it appears on your Connecticut income tax return in the space provided at the top of the form. If you are filing a joint return, also enter your spouse’s name and SSN.

Part I

Line 1

Residents, part-year residents, and nonresidents should enter the amount from federal Form 6251, Line 28. Part-year residents must also include or exclude any tax preference items and adjustments attributable to a future year which accrued up to the time of a change in residence.

If your filing status is filing separately for Connecticut only, recalculate your federal 6251 using only your share of Lines 1 through 27 from federal Form 6251 and enter the result here. This amount may differ from the amount entered on federal Form 6251, Line 28.

Line 2

To compute the additions to federal alternative minimum taxable income, use the amount entered on Form CT-1040, Schedule 1, Line 39, or Form CT-1040NR/PY, Schedule 1, Line 41, minus:

•Any modification for a taxable lump-sum distribution from a qualified plan not included in federal adjusted gross income, as entered on Form CT-1040, Schedule 1, Line 34, or Form CT-1040NR/PY, Schedule 1, Line 36; and

•Any interest or dividend income on U.S. government obligations or securities exempt from federal income tax, but taxable for Connecticut income tax purposes, to the extent included on Form CT-1040, Schedule 1, Line 38, or Form CT-1040NR/PY, Schedule 1, Line 40.

Exclude from Line 2 the amount of federally tax-exempt interest or exempt-interest dividends under Internal Revenue Code (IRC) §852(b)(5) from non-Connecticut private activity bonds issued after August 7, 1986, and included on federal Form 6251, Line 12. Enter the net amount on Line 2.

Line 4

To compute the subtractions from federal alternative minimum taxable income, use the total amount entered on Form CT-1040, Schedule 1, Line 50, or Form CT-1040NR/PY, Schedule 1, Line 52, minus:

Any modification for refunds of state and local income taxes entered on Form CT-1040, Schedule 1, Line 43, or Form CT-1040NR/PY, Schedule 1, Line 45;

Any modification for Tier 1 Railroad Retirement Benefits and Supplemental Annuities, as entered on Form CT-1040, Schedule 1, Line 44, or Form CT-1040NR/PY, Schedule 1, Line 46;

Any modification for the amount of any distributions you received from the Connecticut Higher Education Trust (CHET) as a designated beneficiary to the extent included in your federal adjusted gross income, and to the extent included on Form CT-1040, Schedule 1, Line 49, or Form CT-1040NR/PY, Schedule 1, Line 51;

Any modification for the amount of interest earned on contributions established for a designated beneficiary under the Connecticut Homecare Option Program for the Elderly to the extent the interest is includable in the federal adjusted gross income of the designated beneficiary and to the extent included on Form CT-1040 Schedule 1, Line 49, or Form CT-1040NR/PY, Schedule 1, Line 51; and

Any modification for the amount of income received from the U.S. government as retirement pay for a retired member of the Armed Forces of the United States or the National Guard to the extent included on Form CT-1040, Schedule 1, Line 45, or Form CT-1040NR/PY, Schedule 1, Line 47.

Include on Line 4 the amount of federally tax-exempt interest or exempt-interest dividends under IRC §852(b)(5) from Connecticut private activity bonds issued after August 7, 1986, and included on federal Form 6251, Line 12. Enter the net amount on Line 4.

Line 5

If your filing status is filing separately and Line 5 is more than $219,900, you must include an additional amount on Line 5 calculated as follows. If Line 5 is $364,800 or more, include an additional $36,225 on Line 5. Otherwise, include 25% of the excess of the amount on Line 5 over $219,900.

Example: If the amount on Line 5 is $239,900, multiply the amount in excess of $219,900 ($20,000) by 25% (.25). The result is $5,000. Add the $5,000 to $239,900 and enter $244,900 on Line 5.

Line 10

If you were under age 24 at the end of 2010, follow the instructions to federal Form 6251, Line 29, to calculate the exemption amount.

Line 12

If Line 2 or Line 4 of Form CT-6251 is greater than zero and you claimed a foreign earned income exclusion, housing exclusion, or housing deduction on federal Form 2555 or federal Form 2555-EZ, you must complete the Connecticut Foreign Earned Income Tax Worksheet below.

Line 18

Residents: Must enter 1.0000.

Nonresidents and Part-Year Residents: To arrive at the apportionment factor, divide your total items of income, gain, loss, or deduction from Connecticut sources associated with your adjusted federal alternative minimum taxable income by your total adjusted federal alternative minimum taxable income from Form CT-6251, Line 5.

To determine the total items of income, gain, loss, or deduction from Connecticut sources, you must net out certain modifications that may have been included in the amount shown on Form CT-1040NR/PY, Line 6. Refer to the instructions for Lines 2 and 4.

You must further adjust the amount from Form CT-1040NR/PY, Line 6, for any items entered on federal Form 6251, Lines 8 through 11 and 13 through 27, connected with or derived from Connecticut sources.

Part II

If you completed Part III of federal Form 6251, complete Part II and enter the amount from Form CT-6251, Line 42, on Part I, Line 12. However, if Line 2 and Line 4 are zero, skip Part II of this form and enter the amount from federal Form 6251, Line 31, on Line 12.

Lines 25, 26, 27, and 32

When entering an amount on Lines 25, 26, 27, and 32, you must include the Schedule 1 modification for the gain or loss on the sale of Connecticut state and local government bonds from Form CT-1040, Line 36 or Line 47, or Form CT-1040NR/PY, Line 38 or Line 49.

Residents

Use Schedule A to claim a credit against the net Connecticut minimum tax liability for alternative minimum tax paid during the taxable year to a qualifying jurisdiction. Credit may be claimed only if the income on which taxes were paid was derived from or connected with sources within the qualifying jurisdiction.

Part-Year Residents

Use Schedule A to claim a credit against the net Connecticut minimum tax liability for alternative minimum tax paid to a qualifying jurisdiction on items of income, gain, loss, or deduction attributable to that jurisdiction during the period of Connecticut residency.

A qualifying jurisdiction includes another state of the United States, a local government within another state, or the District of Columbia. A qualifying jurisdiction does not include the State of Connecticut, the United States, or a foreign country or its provinces (for example, Canada and Canadian provinces).

No credit is allowed for any of the following:

Alternative minimum tax paid to a qualifying jurisdiction on income not derived from or connected with sources within the qualifying jurisdiction;

Alternative minimum tax paid to a jurisdiction that is not a qualifying jurisdiction;

Alternative minimum tax paid to a qualifying jurisdiction, if you claimed credit for alternative minimum tax paid to Connecticut on that qualifying jurisdiction’s alternative minimum tax return or income tax return; or

Payments of alternative minimum tax made to a qualifying jurisdiction on income not subject to the Connecticut alternative minimum tax.

No credit is allowed for tax paid on dividends or interest income unless derived from property employed in a business or trade carried on in that jurisdiction. However, credit is allowed for tax paid on wages earned for services performed in a qualifying jurisdiction.

The allowed credit must be separately computed for each qualifying jurisdiction. Use separate columns for each qualifying jurisdiction for which you are claiming a credit. Attach a copy of all alternative minimum tax returns filed with qualifying jurisdictions directly following Form CT-6251.

Schedule A provides two columns, A and B, to compute the credit for two qualifying jurisdictions. If you need more than two columns, create a worksheet identical to Schedule A and attach it to the back of your Form CT-6251.

If you are claiming credit for alternative minimum tax paid to a qualifying jurisdiction and to one of its political subdivisions, follow these rules to determine your credit.

A.If the same amount of adjusted alternative minimum taxable income is taxed by both the city and the state:

1.Use only one column of Schedule A to calculate your credit;

2.Enter the same amount of adjusted alternative minimum taxable income taxed by both city and state in that column on Form CT-6251, Schedule A; and

3.Combine the amounts of alternative minimum tax paid to the city and the state and enter the total on Line 51 of that column.

B.If the amounts of adjusted alternative minimum taxable income taxed by both the city and state are not the same:

1.Use two columns on Form CT-6251, Schedule A;

2.Include only the same amount of adjusted alternative minimum taxable income taxed by both jurisdictions in the first column; and

3.Include the excess amount of adjusted alternative minimum taxable income taxed by only one of the jurisdictions in the next column.

43. Modified adjusted federal alternative minimum taxable income: See instructions.

43.

00

Line 43

Residents: Enter the amount of adjusted federal alternative minimum taxable income from Form CT-6251, Line 5. However, if a taxpayer’s adjusted federal alternative minimum taxable income includes a net loss derived from or connected with sources in a qualifying jurisdiction(s), the taxpayer must add the net loss to the amount of adjusted federal alternative minimum taxable income from Line 5 and enter the result.

Part-Year Residents: Enter the portion of adjusted federal alternative minimum taxable income from Form CT-6251, Line 5, attributable to the residency portion of the taxable year. However, if a part-year resident’s adjusted federal alternative minimum taxable income includes a net loss derived from or connected with sources in a qualifying jurisdiction(s), the taxpayer must add the net loss to the amount of adjusted federal alternative minimum taxable income from Line 5 attributable to the residency portion of the taxable year.

Line 44

Enter the name and the two-letter code of each qualifying jurisdiction to which you paid alternative minimum tax for which you are claiming credit.

Line 45

Enter the amount of the adjusted federal alternative minimum taxable income included on Line 43 subject to a qualifying jurisdiction’s alternative minimum tax.

Part-Year Residents: Enter the portion of the 2010 net Connecticut minimum tax liability attributable to the residency portion of the taxable year.

Line 48

Multiply the percentage arrived at on Line 46 by the amount reported on Line 47.

Line 49

Residents: Enter the total amount of alternative minimum tax paid to a qualifying jurisdiction.

Part-Year Residents: Enter the amount of alternative minimum tax paid to a qualifying jurisdiction on items of income, gain, loss, or deduction derived from or connected with sources in that jurisdiction during the residency portion of the taxable year.

If the alternative minimum tax paid to that jurisdiction was also based on income earned during the nonresidency portion of your taxable year, you must prorate the amount of tax for which you are claiming credit. The proration is based upon the relationship that the income earned in that jurisdiction during your Connecticut residency bears to the total amount of income that you earned in that jurisdiction in the taxable year.

Alternative minimum tax paid means the lesser of your tax liability to the qualifying jurisdiction or the tax you paid to that jurisdiction as reported on a return filed with that jurisdiction, but not any penalty or interest.

Line 46

Divide the amount on Line 45 by the amount on Line 43. The result may not exceed 1.0000. Round to four decimal places.

Line 47

Residents: Enter the amount from Form CT-6251, Line 21.

Line 50

Enter the lesser of the amounts reported on Line 48 or Line 49.

Line 51

Add the amounts from Lines 50A, 50B, and 50 of any additional worksheets. The amount on Line 51 cannot exceed the total of Line 48. Enter the total on Line 51 and on Line 22.