CT-1040BA: Nonresident Business Apportionment Schedule (2025)
Connecticut · Connecticut DRS · Used for tax years 2025
Schedule CT-1040BA is Connecticut’s 2025 Nonresident Business Apportionment Schedule, attached to Form CT-1040NR/PY. It lists business locations inside and outside Connecticut and, when required, reports 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 must 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.
- If separate books and records satisfactorily identify your Connecticut business income, check the separate-books-and-records box and do not complete Schedule B.
- If your records do not satisfactorily identify that income, complete Schedule B. An approved alternative apportionment method may be used, but you must still complete CT-1040BA and include an explanation of the alternative method.
Occasional or isolated transactions outside Connecticut do not qualify as carrying on business outside the state. Connecticut activities that are casual, isolated, or inconsequential do not count as carrying on business in Connecticut.
What you'll need
Have these forms and records available:
- Form CT-1040NR/PY, to which you must attach Schedule CT-1040BA.
- Your name and Social Security number, your spouse’s information if filing jointly, and the business name, doing-business-as name, and federal employer identification number.
- Exact addresses of all business locations inside and outside Connecticut, descriptions of each location, and whether you rent or own each place.
- Separate business books and records if you use them to allocate Connecticut income.
- Gross-receipts records for all locations and Connecticut locations, broken down by the categories in Schedule B, if you use formula apportionment.
- Federal Form 1040 business income or loss amounts that must be apportioned, plus Schedule CT-SI for nonresidents or Schedule CT-1040AW for part-year residents.
- An explanation of your alternative method if you submit an alternative apportionment method.
How to file
Complete the 2025 Schedule CT-1040BA in blue or black ink. Attach it to Form CT-1040NR/PY and submit it to the Connecticut Department of Revenue Services (DRS). Do not use staples. The supplied text does not give a mailing address or e-file directions.
- Enter your identifying information and list every business location in Schedule A, including its description and whether you rent or own it.
- If you determine Connecticut income from satisfactory separate books and records, check the box and skip Schedule B.
- Otherwise, complete Schedule B with 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 on Line 8.
- Multiply each business income or loss item that must be apportioned by the Line 8 fraction. Nonresidents report the apportioned amounts on Schedule CT-SI. Part-year residents report them on Schedule CT-1040AW, Column D.
Prepare and attach a separate Schedule CT-1040BA for each business that requires apportionment.
Common mistakes
- Using the wrong year’s form. Attach the correct year’s schedule to Form CT-1040NR/PY to avoid processing delays.
- Using staples or the wrong ink. Do not staple the forms. Complete the schedule in blue or black ink only.
- Completing Schedule B when using satisfactory separate books and records. Check the separate-books-and-records box and leave Schedule B uncompleted.
- Including excluded receipts in Schedule B. Do not include receipts from the sale or disposition of tangible or intangible personal property that is not held for sale in the ordinary course of business. Also exclude receipts from the sale, rental, lease, or license of real property.
- Apportioning real-property rental income or sale gains and losses. Do not apply the apportionment fraction to these amounts. Allocate them according to where the real property is located.
- Using one schedule for multiple businesses. A separate CT-1040BA is required for each business whose income must be apportioned.
Questions people ask
Can I use separate books and records instead of the formula?
Yes, if they satisfactorily disclose the business income derived from or connected with Connecticut sources. Check the separate-books-and-records box and do not complete Schedule B. Your allocations must be consistent with those reported to other states that permit this method.
How do I calculate the apportionment fraction?
Add Lines 1 through 6 in each column of Schedule B. Divide the Connecticut total on Line 7, Column B, by the all-locations total on Line 7, Column A. Carry the fraction to six places on Line 8.
When are service receipts treated as Connecticut receipts?
Service receipts belong in Column B if, and to the extent that, the service is used within Connecticut.
What if I have more than one business?
Prepare a separate Schedule CT-1040BA for each business that requires apportionment, and attach all the schedules to Form CT-1040NR/PY.
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.