CT-1040CRC: Claim of Right Credit (2025)
Connecticut · Connecticut DRS · Used for tax years 2025
Form CT-1040 CRC is used to calculate and claim Connecticut’s claim of right credit for 2025. It reports income repaid during 2025 and compares Connecticut income tax for the earlier year or years with the tax that would have applied without that income.
Who files this form
Use Form CT-1040CRC to claim the Connecticut claim of right credit for 2025 if you meet all of these conditions:
- You are a resident, nonresident, or part-year resident individual who included the income in Connecticut adjusted gross income for an earlier tax year.
- You were required to repay that income during your 2025 tax year.
- Your repayment was more than $3,000.
- You determined your 2025 federal income tax liability under the claim of right rules using the credit method or a qualifying deduction method.
If you used the deduction method, the repayment must have been deducted on Schedule A of federal Form 1040 or Form 1040-SR. You are not eligible if you deducted the repayment in determining federal adjusted gross income.
Trusts and estates are not eligible.
What you'll need
Submit all of the following with your 2025 Connecticut income tax return:
- A completed Form CT-1040CRC.
- A copy of your signed and filed 2025 federal income tax return, including all schedules and attachments.
- Proof that you were required to repay income included in Connecticut adjusted gross income for the earlier year or years, such as an employer's letter requiring repayment of sales commissions.
- A copy of your signed and filed federal income tax return for each year you received the income, including all schedules and attachments.
- Proof that you repaid the income during your 2025 tax year, such as a copy of a cancelled check.
You will also need your Connecticut income tax liability for the year or years you received the income to complete the credit calculation.
How to file
Complete the form
- Enter your identifying information. On Line 1, list the year or years you received the income, the type of income, the amount repaid in 2025, and the reason for repayment.
- On Line 2, select your federal deduction or credit method. If you used the credit method, skip Line 3. If you used the deduction method, answer the Schedule A question on Line 3.
- On Line 4, enter your Connecticut income tax liability for the year or years you received the income, as originally filed, adjusted by DRS, or later amended.
- On Line 5, calculate that liability after excluding the income repaid in 2025 from Connecticut adjusted gross income.
- Subtract Line 5 from Line 4. Enter the credit on your 2025 Form CT-1040, Line 20b; Form CT-1040NR/PY, Line 22a; or Form CT-1040X, Line 22b.
Electronic filing
Select the Form CT-1040CRC indicator on your Connecticut income tax return. Complete Form CT-1040CRC and upload it as an attachment. Submit the required supporting documentation with your return.
Paper filing
Complete the form in blue or black only and place it on top of your completed Connecticut income tax return. The Line 6 instructions say to check the Form CT-1040CRC box on the front of your Connecticut return. Include the required supporting documentation.
The supplied form does not give a mailing address.
Common mistakes
- Filing for a repayment of $3,000 or less. The form says to stop and not file because you are not entitled to the credit.
- Claiming the credit with an ineligible federal deduction. If you used the deduction method but did not report the repayment on Schedule A, stop and do not file this form.
- Using the wrong year's form. DRS warns that each form is year-specific and that using the correct year's form prevents processing delays.
- Including income that was not previously in Connecticut adjusted gross income. The Line 1 instructions stress that the repaid income must have been included for the year or years of receipt.
- Overlooking a Social Security benefits recalculation. Repaying Social Security benefits may require recalculating taxable benefits to determine the amount to exclude from Connecticut adjusted gross income.
Questions people ask
Is the credit equal to the amount I repaid?
No. The credit is the decrease in Connecticut income tax for the earlier year or years that results from excluding the repaid income. Subtract Line 5 from Line 4 to calculate it.
Can I qualify if I used the federal deduction method?
Yes, if you meet the other eligibility conditions and deducted the repayment on Schedule A of federal Form 1040 or Form 1040-SR. You are not eligible if the repayment was deducted in determining federal adjusted gross income.
Can nonresidents and part-year residents claim the credit?
Yes, if they meet the eligibility conditions. If you were a nonresident or part-year resident in the year you received the income, exclude the repaid income from Connecticut adjusted gross income when recalculating that year's tax. Also exclude it from Connecticut-sourced income to the extent it was derived from or connected with Connecticut sources.
How is the credit applied to my 2025 tax?
The credit is treated as a tax payment and credited against your 2025 Connecticut income tax liability on the due date for payment of that liability.