CT-1040BA: Nonresident Business Apportionment Schedule (2024)
Connecticut · Connecticut DRS · Used for tax years 2024
Schedule CT-1040BA is Connecticut’s 2024 Nonresident Business Apportionment Schedule, attached to Form CT-1040NR/PY. It lists business locations inside and outside Connecticut and, when required, uses gross receipts to calculate the Connecticut share of business income or loss.
Who files this form
Nonresidents and part-year residents must complete Schedule CT-1040BA if they carry on business both inside and outside Connecticut and are required to allocate or apportion business income. For part-year residents, this applies to the nonresident portion of the year.
- Complete Schedule A to list your business locations inside and outside Connecticut.
- Complete Schedule B if separate books and records do not satisfactorily show the portion of business income connected with Connecticut.
- If separate books and records do show that portion, check the separate-books-and-records box and do not complete Schedule B.
An occasional or isolated business transaction outside Connecticut does not qualify you to allocate or apportion business income. Business activities in Connecticut that are casual, isolated, or inconsequential are not considered carrying on business in Connecticut.
What you'll need
Have the following information and records available:
- Your name and Social Security number, plus your spouse’s information if filing jointly.
- Your business name, any doing-business-as name, and federal employer identification number.
- Exact addresses of all business locations inside and outside Connecticut, descriptions of those locations, and whether you rent or own them.
- Separate business books and records, if you use them to determine Connecticut income.
- Gross receipts by category for all locations and for Connecticut only, if completing Schedule B.
- Business income or loss amounts reported on federal Form 1040 that must be apportioned.
Attach Schedule CT-1040BA to Form CT-1040NR/PY. Nonresidents report apportioned amounts on Schedule CT-SI; part-year residents use Schedule CT-1040AW, Column D.
If you submit an alternative apportionment method, include information explaining that method with Schedule CT-1040BA.
How to file
Complete the schedule in blue or black ink. Attach the 2024 Schedule CT-1040BA to Form CT-1040NR/PY and submit it to the Connecticut Department of Revenue Services (DRS). Do not use staples.
- Complete Schedule A with all business locations, their descriptions, and whether you rent or own them.
- If separate books and records satisfactorily identify Connecticut income, check the box and skip Schedule B.
- Otherwise, complete Schedule B. Enter total receipts for all locations in Column A and Connecticut receipts in Column B.
- Add Lines 1 through 6 in each column. Divide Line 7, Column B, by Line 7, Column A, and carry the fraction to six places.
- Multiply each business income or loss item that must be apportioned by the Line 8 fraction. Nonresidents enter the results on the proper lines of Schedule CT-SI. Part-year residents enter them on Schedule CT-1040AW, Column D.
The supplied text does not provide a mailing address or e-file directions.
Common mistakes
- Using the wrong year’s schedule. The form warns that attaching the correct year’s form helps prevent processing delays.
- Using staples or the wrong ink. Do not staple the form. Complete it in blue or black ink only.
- Completing Schedule B when using satisfactory separate books and records. Check the separate-books-and-records box instead and skip Schedule B.
- Including excluded receipts in Schedule B. Do not include receipts from real property sales, rentals, leases, or licenses. Also exclude receipts from sales or dispositions of tangible personal property or intangible property not held for sale in the ordinary course of business.
- Apportioning real property rental income or sale gains and losses. Do not apply the apportionment fraction to these amounts. Connecticut real property amounts are allocated to Connecticut; amounts for real property outside Connecticut are allocated outside the state.
- Combining multiple businesses on one schedule. Prepare a separate Schedule CT-1040BA for each business requiring apportionment and attach all schedules to Form CT-1040NR/PY.
Questions people ask
Can I use separate books and records instead of the formula?
Yes, if they satisfactorily show the portion of business income derived from or connected with Connecticut sources. Complete Schedule A, check the separate-books-and-records box, and do not complete Schedule B.
How are service receipts assigned to Connecticut?
Enter service receipts in Schedule B, Column B, if and to the extent the service is used within Connecticut. Column A includes service receipts from both inside and outside Connecticut.
Can I submit an alternative apportionment method?
The form allows an approved alternative method. If you submit one, you must also complete Schedule CT-1040BA and include information explaining the alternative method.
Where do part-year residents report apportioned amounts?
Part-year residents enter the apportioned amounts on the proper lines of Schedule CT-1040AW, Column D. Nonresidents use the proper lines of Schedule CT-SI.