Connecticut updates tax guide for withholding on nonpayroll amounts

The Connecticut Department of Revenue has updated its informational publication discussing the personal income tax withholding requirements for nonpayroll amounts, including: pension and annuity distributions from qualified or nonqualified plans (both public and private); unemployment compensation payments to recipients who have requested withholding; gambling winnings that are subject to federal income tax withholding and that are made to a resident or to someone receiving the payment on behalf of a resident; Connecticut lottery winnings that are reportable for federal income tax withholding purposes; and nonwage payments made to athletes or entertainers. The updated publication includes information on withholding exemptions for military and teacher retirement income. Effective January 1, 2015, all military retirement pay is exempt from withholding. Connecticut partially exempts teacher’s retirement board pension payments from income tax withholding beginning January 1, 2015. The partial exemption is 10% for the 2015 taxable year, 25% for the 2016 taxable year, and 50% for taxable years beginning after 2016.

The publication also provides a calendar of filing and payment due dates, answers to frequently asked questions, electronic payment and filing requirements, general information on who is required to withhold income tax and withholding registration requirements, the frequency of reporting and payment periods (weekly, monthly, or quarterly remitter), a schedule of penalties, bulk filing information, and recordkeeping requirements. The updated publication supersedes Information Publication 2015(8.1). (Informational Publication 2016(8), Connecticut Department of Revenue Services, September 20, 2016.)

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