CT-1120 AAC: ABLE Account Contribution Tax Credit (2025)
Connecticut · Connecticut DRS · Used for tax years 2025
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 to employees’ ABLE accounts and computes the credit, limited to $2,500 per
Who files this form
Use 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, except the liability imposed by section 12-707 of the Connecticut General Statutes. Taxpayers applying the credit to Corporation Business Tax must attach this form to Form CT-1120K, Business Tax Credit Summary.
What you'll need
Have the following information ready:
- Entity name and Connecticut Tax Registration Number.
- Beginning and ending dates of the income year.
- Each qualifying employee’s name and ABLE account number.
- Payments made to each employee’s ABLE account.
Attach a worksheet if you need additional employee lines. If applying the credit to Corporation Business Tax, attach Form CT-1120 AAC to Form CT-1120K, Business Tax Credit Summary.
How to file
Complete the 2025 form in blue or black ink.
- Enter the entity name, Connecticut Tax Registration Number, and income-year dates.
- In Part II, list qualifying employees, their ABLE account numbers, and payments. Do not enter more than $2,500 for any employee. Attach a worksheet if more lines are needed.
- Follow the printed total instruction in Part II: add Lines 1 through 9 and enter the result in the total field and 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.
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, and the correct year’s form must be used.
- Using ink other than blue or black.
- Using staples. The form says not to use them.
- Claiming more than $2,500 for a single employee for an income or taxable year.
- Failing to attach a worksheet when additional employee lines are needed.
- Failing to attach this form to Form CT-1120K when applying the credit to Corporation Business Tax.
Questions people ask
How much is the credit?
The credit equals contributions made by the taxpayer to its 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.
Who is the designated beneficiary?
The designated beneficiary is an eligible individual who owns an ABLE account established under a qualified ABLE program.
Who administers this credit?
The Office of the State Treasurer administers the ABLE Account Contribution tax credit.
Where can I find more information?
The form directs taxpayers to the Guide to Connecticut Business Tax Credits on the Department of Revenue Services website at portal.ct.gov/DRS.