Connecticut residents must file Form CT-1040, Connecticut Resident Income Tax Return, to claim a CHET deduction. Nonresidents of Connecticut must file Form CT-1040 NR/PY, Connecticut Nonresident and Part-Year Resident Income Tax Return, to claim a CHET deduction. The deduction is taken on Schedule 1 — Modifications to Federal Adjusted Gross Income. Taxpayers are asked to enter in the space provided the CHET account number (only one CHET account number is required to be listed and only one schedule should be included even if he or she has contributed to more than one CHET account). In the contribution space, taxpayers should enter the total amount of contributions made to all CHET accounts up to $5,000 for individual filers and $10,000 for joint filers. Amounts in excess of the maximum allowable contributions may be carried forward to future filing years, up to five years after the initial contribution was made. A more complete explanation of contribution carryforwards and how they are applied can be found in Special Notice 2006(11).

Connecticut taxpayers may deduct from their Connecticut adjusted gross income contributions made to one or more CHET Accounts during the tax year up to these annual contribution deduction limits: (1) $5,000 for an individual who is single, head of household, or married/civil union filing separately; and (2) $10,000 for an individual who is married/civil union filing jointly, or qualifying widow(er) with dependent child.  These limits apply on an aggregate basis (not a per beneficiary basis) to all contributions made to all CHET Accounts during the tax year.  Connecticut taxpayers may not claim a deduction for a rollover into a CHET account from a non-CHET account or for a transfer into a CHET account from a Coverdell education savings account.

** If you have questions, you may want to consult with your tax advisor.

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