CT-1120CU-NI: Tax on Combined Group Net Income (2024)
Connecticut · Connecticut DRS · Used for tax years 2024
Form CT-1120CU-NI is Connecticut’s Tax on Combined Group Net Income form. It reports corporation members’ income and deductions, group adjustments and eliminations, and the calculation of adjusted federal taxable income and combined group net income or loss.
Who files this form
Combined groups use Form CT-1120CU-NI to calculate their tax on the net income base. Complete it and attach it to Form CT-1120CU.
Combined groups are taxed on the greater of their net income base or their minimum tax base, sometimes called the capital base.
What you'll need
Have the following information and forms available, as applicable:
- Each member’s corporation name and member number, plus the designated taxable member’s Connecticut Tax Registration Number.
- Each member’s federal Form 1120 amounts, or the amounts it would have reported if it filed that return.
- Federal Form 4797, Part II, Line 17, for the net gain or loss reported in Part I.
- Federal Form 4562 for federal bonus depreciation claimed.
- Form CT-1120 ATT, Schedule I, to calculate the dividend deduction, and Schedule J, to calculate bonus depreciation recovery.
- Form CT-1120A-CU, Schedule Q, Line 10, for each taxable member’s standard apportionment fraction.
- The appropriate special apportionment forms if the group has income subject to special apportionment rules.
- The previously submitted Form CT-DTLD if claiming the Net Deferred Tax Liability Deduction.
Attach explanations for amounts entered on Part II, Lines 9 and 19.
How to file
Complete Form CT-1120CU-NI and attach it to Form CT-1120CU. The supplied text does not specify a mailing address or an e-file method.
- Part I: Complete a column for every taxable and nontaxable member. If the group has more than six members, attach copies of Page 2 as needed.
- Part II: Report Connecticut-specific modifications at the combined group level.
- Part III: Complete a column for each taxable member only. If there are more than eight taxable members, attach copies of Page 5 as needed.
Enter the total from Part III, Line 14, on Form CT-1120CU, Part I, Line 1.
Common mistakes
- Including nontaxable members in Part III. The instructions say not to complete Part III columns for nontaxable members.
- Exceeding the net operating loss deduction limit. Part III, Line 10, cannot exceed 50% of Line 8 in the same member’s column.
- Exceeding the deferred tax deduction limit. The Net Deferred Tax Liability Deduction on Part II, Line 22, must not exceed Line 21.
- Leaving out explanations. Attach an explanation for other income on Part II, Line 9, and other deductions on Line 19.
- Counting special-apportionment receipts in the standard calculation. The instructions say to remove those receipts from the standard apportionment calculation on Form CT-1120A-CU, Schedule Q.
Questions people ask
Do I include nontaxable members?
Yes, in Part I. Complete a column for each taxable and nontaxable member. Part III includes taxable members only.
What if there are more members than the form has columns?
For Part I, attach copies of Page 2 if the group has more than six members. For Part III, attach copies of Page 5 if there are more than eight taxable members. Use the same format.
How are dividends between group members treated?
Dividends paid from one member to another are eliminated from the recipient’s income.
How is the tax calculated in Part III?
Multiply each taxable member’s Line 12 amount by 7.5%. The instructions say to enter $250 if the result is lower, except for REITs and RICs. Add the Line 13 amounts and report the total on Line 14 and on Form CT-1120CU, Part I, Line 1.