CT-1120 AAC: ABLE Account Contribution Tax Credit (2024)
Connecticut · Connecticut DRS · Used for tax years 2024
Form CT-1120 AAC is used to claim Connecticut’s ABLE Account Contribution Tax Credit against Corporation Business Tax or Income Tax, excluding liability imposed by section 12-707. It reports contributions made to employees’ ABLE accounts and calculates the credit, limited to $2,5
Who files this form
Use the 2024 Form CT-1120 AAC to claim a tax credit for contributions you made to your employees’ ABLE accounts during the income or taxable year.
The credit may be claimed against Connecticut Corporation Business Tax or Income Tax, other than the liability imposed by section 12-707 of the Connecticut General Statutes.
What you'll need
Have the following information ready:
- Entity name and Connecticut Tax Registration Number.
- The beginning and ending dates of your income year.
- Each qualifying employee’s name and ABLE account number.
- The payments made to each employee’s ABLE account during the year.
Attach a worksheet if you need additional employee lines. If applying the credit to Corporation Business Tax, attach this form to Form CT-1120K, Business Tax Credit Summary.
How to file
Complete the form in blue or black ink.
- Enter your entity information and income-year dates.
- Complete Part II with qualifying employee names, ABLE account numbers, and contribution amounts. Do not exceed $2,500 for any employee.
- Follow the Part II total line’s instruction to add Lines 1 through 9 and enter the result in Part I, Line 1.
- Enter the Part I result on Form CT-1120K, Part I-B, Column A.
If applying the credit to Corporation Business Tax, attach Form CT-1120 AAC to Form CT-1120K. Do not use staples.
The form does not provide a mailing address or e-filing instructions.
Common mistakes
- Using the wrong year’s form: Each form is year specific. Use the 2024 version for 2024.
- Using another ink color: Complete the form in blue or black ink only.
- Stapling the form: The form says not to use staples.
- Exceeding the employee limit: The credit allowed for a specific employee cannot exceed $2,500 for any income or taxable year.
Questions people ask
How much is the credit?
The credit equals your contributions to your employees’ ABLE accounts during the income or taxable year, limited to $2,500 per employee for that year.
What is an ABLE account?
An ABLE account is established and maintained to pay qualified disability expenses related to a designated beneficiary’s blindness or disability. The designated beneficiary is the eligible individual who owns the account under a qualified ABLE program.
What if I need more space to list employees?
Attach a worksheet if additional lines are needed in Part II.
Who administers the credit, and where can I find more information?
The Office of the State Treasurer administers the credit. The form directs taxpayers to the Guide to Connecticut Business Tax Credits on the Department of Revenue Services website at portal.ct.gov/DRS.