CT-1120 CHET: Employer Connecticut Higher Education Trust Contributions Tax Credit (2025)
Connecticut · Connecticut DRS · Used for tax years 2025
Form CT-1120 CHET is used to claim Connecticut’s Employer Connecticut Higher Education Trust Contributions Tax Credit. It lists qualified employees, their CHET account numbers and employer contributions, and calculates a credit of 25% of qualifying contributions, limited to $500
Who files this form
Use the 2025 Form CT-1120 CHET to claim the business tax credit for employer contributions to a qualified employee’s Connecticut Higher Education Trust (CHET) account. The credit is available against Insurance Companies and Health Care Centers Taxes, Corporation Business Tax, or Income Tax.
A qualified employee must:
- Be an employee of the employer claiming the credit.
- Not be an owner, member, or partner of that employer.
- Not be a family member of an owner, member, or partner of that employer.
For an S corporation or an entity treated as a partnership for federal income tax purposes, shareholders or partners may claim the credit. For a single-member LLC disregarded as separate from its owner, the owner may claim it if subject to tax under Chapter 207, 208, or 229.
What you'll need
The form requires these attachments:
- Proof of payment to CHET.
- A detailed schedule identifying the total contributions made to each qualified employee’s CHET account for this credit.
You will also need the eligible taxpayer’s name, Connecticut Tax Registration Number, income-year beginning and ending dates, and each qualifying employee’s name, CHET account number, and contribution amount. Attach a worksheet if you need more lines in Part II.
Common mistakes
- Using the wrong year’s form. Each form is year specific; use the 2025 form for 2025.
- Completing the form in ink other than blue or black, or using staples. The form says to use blue or black ink only and not to use staples.
- Entering more than $2,000 in contributions for any employee in Part II, Column C. The credit for a specific qualified employee cannot exceed $500 for an income year.
- Claiming the same contribution against more than one of the taxes listed under Chapters 207, 208, and 229. The form prohibits this.
- Omitting the required proof of payment or detailed contribution schedule.
Questions people ask
How much is the credit?
The credit equals 25% of qualified employer contributions to employees’ CHET accounts during the income year, up to $500 per qualified employee for that income year.
When does the credit become available?
The 2025 form states that the credit is available for income years beginning on or after January 1, 2025.
How do I calculate the credit on the form?
List qualified employees, CHET account numbers, and contributions in Part II. Do not enter more than $2,000 per employee. Add Lines 1 through 30 and enter the total on Part II, Line 31, and Part I, Line 1. Multiply that total by 25% and enter the result on Part I, Line 2, and Form CT-1120K, Part I-B, Column A.
Can contributions for an owner or an owner’s family member qualify?
No. A qualified employee cannot be an owner, member, or partner of the employer, or a family member of any of those individuals.
Where can I find more information?
The form points to the Guide to Connecticut Business Tax Credits on the Department of Revenue Services website at portal.ct.gov/DRS.