Schedule CT-IT Credit: Income Tax Credit Summary (2024)
Connecticut · Connecticut DRS · Used for tax years 2024
Schedule CT-IT Credit summarizes Connecticut income tax credits for individuals, trusts, and estates for 2024. It reports credits earned, balances carried forward from prior years, amounts applied to 2024 income tax liability, and carryforward amounts to 2025.
Who files this form
Individuals, trusts, and estates must attach Schedule CT-IT Credit to their Connecticut income tax return whenever they claim current-year tax credits or have tax credit carryforward balances from a prior year.
Attach the schedule to Form CT-1040, CT-1040NR/PY, CT-1040X, or CT-1041, as applicable.
Do not use this schedule to report the pass-through entity tax credit. Use Schedule CT-PE for that credit.
What you'll need
Have your applicable Connecticut income tax return ready so you can enter your 2024 income tax liability. Keep copies of documents reporting your available credits for your records.
Depending on the credits you report, you may also need:
- Prior-year records: Your 2023 Schedule CT-IT Credit and, for the real estate conveyance credit carryforward, your 2023 Schedule CT-1040 REC.
- Credit vouchers or certificates: The Office of Policy and Management voucher for the youth development organization contribution credit, the Connecticut Innovations, Inc. voucher for the angel investor credit, or the final accredited theater production certificate issued by DECD.
- ABLE contribution records: Documentation supporting employer contributions to employees’ ABLE accounts may be requested.
- K-1 schedules: Schedule CT K-1 or Schedule CT-1041 K-1 for credits reported by a pass-through entity, trust, or estate.
- Worksheet B: A trust or estate allocating any credits to beneficiaries must complete Worksheet B for Schedule CT-IT Credit, found in the Form CT-1041 instructions.
- Other credit forms: Attach Form CT-IRF for the insurance reinvestment fund credit if filing a paper return. Complete Form CT-8801 before entering the current-year prior minimum tax credit, and attach it if filing a paper return.
How to file
Complete the form in blue or black ink only.
- Complete Part 1. Enter your 2024 income tax liability on Line 1 using Form CT-1040, Line 12; CT-1040NR/PY, Line 14; CT-1040X, Line 16; or CT-1041, Line 7. Enter applicable carryforwards in Column B, 2024 credits earned in Column C, and credits applied in Column D. For each applicable line, subtract Column D from the total of Columns B and C to complete Column E.
- Total the credits. Add Column D on Line 10. Transfer the total to Form CT-1040, Line 13; CT-1040NR/PY, Line 15; CT-1040X, Line 17; or CT-1041, Line 8.
- Complete Part 2 if applicable. An individual, trust, or estate that is a pass-through entity member or a trust or estate beneficiary must complete Part 2. For each credit reported on a K-1, enter the credit type, entity or trust name, FEIN, and credit amount. Attach additional schedules as needed.
- Complete Part 3 for the angel investor credit. Provide the CII voucher number and indicate whether you are the original holder or an assignee.
- Attach and submit. Attach the completed 2024 schedule to the back of your applicable Connecticut income tax return and submit it to the Department of Revenue Services. Do not use staples.
The supplied text does not give a mailing address or e-filing steps.
Common mistakes
- Using the wrong year’s schedule: Each form is year specific. Attach the correct year’s form to prevent processing delays.
- Using staples or the wrong ink: Do not staple the form. Complete it in blue or black ink only.
- Reporting the pass-through entity tax credit here: Use Schedule CT-PE instead.
- Applying too much credit: Each amount in Column D cannot exceed the available credit. Total credits applied cannot exceed the income tax liability on Line 1, Column A.
- Ignoring carryforward limits: Remaining angel investor, real estate conveyance, and accredited theater production credits may be carried forward only if their claiming periods have not expired.
- Skipping Form CT-8801: Complete it before entering the current-year prior minimum tax credit on Line 9, Column C. Attach it when filing a paper return.
Questions people ask
Do I need this schedule if I only have unused credits from a prior year?
Yes. Attach Schedule CT-IT Credit when prior-year carryforward tax credit balances exist, even if you are not claiming a current-year credit.
Can I choose which credits to apply first?
Yes. If you claim multiple credits, you may choose their order. Consider the remaining carryforward periods. The total applied cannot exceed your income tax liability.
Can a trust or estate allocate credits to beneficiaries?
Yes. A trust or estate may allocate all or part of its credits to beneficiaries. It must complete Worksheet B for Schedule CT-IT Credit if it does so.
Do I complete Part 3 if someone transferred or sold me an angel investor credit?
Yes. Part 3 is required whether you are the original holder or the credit was assigned, transferred, or sold to you. Enter the CII voucher number and indicate your holder status.
Is a prior-year Connecticut minimum tax credit always allowed?
No. The text says a credit may be allowed if you do not have a current-year alternative minimum tax liability. Complete Form CT-8801 before entering the current-year credit on Line 9, Column C.