Required annual payment

(a) General.

(1) "Required annual payment" means the lesser of (A) 90% of the tax shown on the return for the taxable year, or, if no return is filed, 90% of the tax for such year, or (B) if the preceding taxable year was a taxable year of twelve months and (i) the taxpayer filed a return for the preceding taxable year, 100% of the tax shown on the return of the taxpayer for such preceding taxable year or (ii) zero, if no return was filed, the taxpayer did not have any Connecticut income tax liability for such year and throughout such year the taxpayer was (a) a resident individual, or (b) a nonresident or part-year resident individual with Connecticut-sourced income.

(2) "The tax" means the income tax, as defined in section 12-701(b)-1(a)(10) of Part XIV, taking into account the credit allowable for income tax or alternative minimum tax paid to a qualifying jurisdiction.

(3) "The return" means the originally filed return for the taxable year, provided, if an amended return is filed on or before the due date (determined with regard to any extension of time for filing) of the return for the taxable year, "the return" is such amended return (see Rev. Rul. 83-36, 1983-1 C.B. 358); if an amended return is filed as a consequence of a retroactive change in the provisions of law applicable to the taxable year, "the return" means the amended return, to the extent that the amendment is due to such retroactive change of law; and if separate returns are originally filed by persons married to each other, although they were eligible to file a return jointly, for the taxable year, and, within the time prescribed by Conn. Gen. Stat. § 12-732 for claiming a refund, they file a return jointly for the taxable year, "the return" means such joint return (see Rev. Rul. 80-355, 1980-2 C.B. 374).

(4) In the event that the taxpayer makes a mathematical error, as defined in section 12-731-1, on the return, including but not limited to the making of an incorrect tax computation or the failure to enter a tax computation, "the tax shown on the return" means the tax, as correctly computed.

(5) The same principles apply in determining whether a resident individual, a nonresident individual or a part-year resident individual has made the required annual payment. The principles that apply in determining whether a resident individual, a nonresident individual, or a part-year resident individual has made the required annual payment also apply in determining whether a resident trust or estate, a nonresident trust or estate, or a part-year resident trust, respectively, has made the required annual payment.

(b) Change from joint return to separate returns. If separate Connecticut income tax returns are filed by a husband and wife who filed a joint Connecticut income tax return in the preceding taxable year, the required annual payment for each spouse means the lesser of (A) 90% of the tax shown on the return for the taxable year, or, if no return is filed, 90% of the tax for such year, or (B) if the preceding taxable year was a taxable year of twelve months, the product of the joint Connecticut income tax liability for the preceding taxable year multiplied by a fraction, the numerator of which is the spouse's separate Connecticut income tax liability for the preceding taxable year (as if a joint Connecticut income tax return had not been filed for the preceding taxable year) and the denominator of which is the sum of each spouse's separate Connecticut income tax liability for the preceding taxable year (as if a joint Connecticut income tax return had not been filed for the preceding taxable year). The same rule applies where separate Connecticut income tax returns are filed by unmarried persons who were married to each other and who had filed a joint Connecticut income tax return in the preceding taxable year.

(c) Change from separate returns to joint return. If a joint Connecticut income tax return is filed by a husband and wife who filed separate Connecticut income tax returns (whether as unmarried persons or as married persons filing separately) in the preceding taxable year, the required annual payment of the spouses means the lesser of (A) 90% of the tax shown on the joint return for the taxable year, or (B) if, for each spouse, the preceding taxable year was a taxable year of twelve months, and each spouse filed a return, the sum of 100% of the tax shown on the return of each spouse for such preceding taxable year. If only one of the spouses (whether as an unmarried person or as a married person filing separately) filed a Connecticut income tax return for the preceding taxable year, the required annual payment of the spouses means 90% of the tax shown on the joint return for the taxable year unless the spouse who did not file a Connecticut income tax return for such preceding taxable year did not have any Connecticut income tax liability for such year and was throughout such year (i) a resident individual or (ii) a nonresident or part-year resident individual with Connecticut- sourced income. If neither spouse filed a Connecticut income tax return for the preceding taxable year, the required annual payment of the spouses means 90% of the tax shown on the joint return for the taxable year unless each spouse had no Connecticut income tax liability for such preceding taxable year and each spouse was through such year (i) a resident individual or (ii) a nonresident or part-year resident individual with Connecticut-sourced income.

(d) While this section pertains to Section 12-701a(12) of the general statutes, for purposes of supplementary interpretation, as the phrase is used in Section 12-2 of the general statutes, the adoption of this section is authorized by Section 12-740(a) of the general statutes.

(Effective November 18, 1994; Amended December 19, 2002)

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