CT-1120A-CCA: Corporation Business Tax Return Apportionment Computation of Income from Credit Card Activities (Revision 2016-12)
Connecticut · Connecticut DRS · Used for tax years 2024, 2025, 2026
Form CT-1120A-CCA calculates the Connecticut share of a corporation’s net income from credit card activities for corporation business tax purposes. It reports Connecticut and total credit card receipts, calculates an apportionment fraction, and includes a schedule for computing C
Who files this form
Corporations must use Form CT-1120A-CCA to apportion income from credit card activities separately from other income.
- If all net income comes from credit card activities, complete Schedules R-CCA and A-1.
- If net income also comes from other sources, complete Schedule A-2 as well. Financial service companies use Form CT-1120A-FS to apportion their other income. Other companies use the applicable apportionment schedule.
- Combined group members filing Form CT-1120CU that are subject to credit card activities apportionment must complete Schedule A-2, Column A, but not Column B.
What you'll need
Have the following information and applicable forms available:
- Corporation name, Connecticut Tax Registration Number, and income year beginning and ending dates.
- Books and records showing cardholders’ billing addresses.
- Amounts for credit card interest, fees or penalties in the nature of interest, and cardholder fees, both for Connecticut billing addresses and for all billing addresses.
- Net gains from sales of credit card receivables and credit card issuers’ reimbursement fees.
- Net income information from Form CT-1120, Schedule A, Line 1. Form CT-1120CU filers instead enter net income from credit card activities in Schedule A-2, Column A.
- If there is income from other sources, the applicable apportionment fraction from Form CT-1120A, Schedule Q; Form CT-1120A-FS, Line 15; or another applicable apportionment form.
Combined group filers transfer the credit card income amount after apportionment to Form CT-1120CU-NI, Part III, Line 6.
Common mistakes
- Using the wrong ink: Complete the form in blue or black ink only.
- Not carrying fractions far enough: Carry the receipts and apportionment fractions to six places, as directed on the form.
- Completing Column B for a combined group member: Form CT-1120CU filers must use Schedule A-2, Column A, and must not complete Column B. Transfer Line 12, Column A, to the appropriate column on Form CT-1120CU-NI, Part III, Line 6.
- Making extra entries after using Schedule A-2: When transferring Schedule A-2, Line 13, to Form CT-1120, Schedule A, Line 3, make no entries on Schedule A, Line 1 or Line 2.
- Including other financial services receipts in the wrong calculation: For combined group filers, financial services receipts other than credit card activities belong in the combined group’s apportionment calculation on Form CT-1120A-CU.
Questions people ask
What counts as a credit card?
The form defines a credit card as a credit, travel, or entertainment card.
How is a cardholder’s billing address determined?
The billing address is presumed to be the address in the taxpayer’s books and records where a notice, statement, or bill is to be mailed, as of the mailing date.
How are Connecticut receipts calculated?
In Schedule R-CCA, divide Line 1 by Line 2 and carry the result to six places. Multiply that fraction by Line 4, which contains net gains from sales of credit card receivables plus issuers’ reimbursement fees. Add the result to Line 1 to get Connecticut receipts on Line 6.
Where does the apportionment fraction go if all net income comes from credit card activities?
Enter Schedule A-1, Line 9, on Form CT-1120, Schedule A, Line 2.
What is a credit card issuer’s reimbursement fee?
It is a fee the taxpayer receives from a merchant’s bank because a person holding a credit card issued by the taxpayer charged merchandise or services to that card.