This Announcement has been cited by IP 92(8.4);
Information About Supplemental Withholding Tables For Joint Filers Who Both Earn Wage Income
PURPOSE: This Announcement alerts two-earner couples to the fact that they may need to adjust their Connecticut income tax withholding amounts through their employers. If employees do not have enough Connecticut income tax withheld throughout the year, they may be subject to interest on the underpaid amount.
USING SUPPLEMENTAL TABLES TO ADJUST WITHHOLDING: If you and your spouse are both employed, you file a joint income tax return, and you both select Filing Status "A", married filing jointly, for Connecticut income tax withholding on Form CT-W4, Employee’s Withholding or Exemption Certificate, you may be having too much or too little Connecticut income tax withheld from your wages. Although the withholding tables provide you with the accurate amount of withholding for your own wage income, when you file your joint Connecticut income tax return, the application of personal exemptions and credits is based upon the combined income of you and your spouse. Therefore, your withholding, as determined by the tables, may need to be adjusted.
To minimize this problem, Supplemental Tables for Married Couples Filing Jointly have been created for use on or after July 1, 1998, to help you adjust your withholding. These tables are included as part of Form CT-W4 (effective July 1, 1998), which is available from your employer.
By following the instructions on Form CT-W4, you can determine whether you need to increase or decrease the amount of Connecticut income tax that would otherwise be withheld. If you need to make an adjustment, complete a new Form CT-W4 and give it to your employer as soon as possible.
NOTE: Form CT-W4 is a four-page publication. The supplemental tables are found on pages 3 and 4.
OTHER ADJUSTMENTS TO WITHHOLDING: The supplemental tables are a quick and easy guide to adjusting your withholding, but the results may not match your required withholding exactly. For example, if you or your spouse has non-wage income (such as from interest, dividends, capital gains, or pension), you may take this other income into account when deciding how much to withhold. Additionally, if you or your spouse were not employed or earned substantially less income during the first six months of 1998 you should check your withholding. For a more precise method of determining withholding, refer to IP 92(9.5), Is My Connecticut Withholding Correct? Call the Department's Forms Unit (see below) to request a copy.
EFFECT OF THIS DOCUMENT: An Announcement (AN) is a document that alerts taxpayers to new developments (other than newly enacted or amended Connecticut or federal laws or newly released judicial decisions), including new administrative positions, policies or practices.
EFFECT ON OTHER DOCUMENTS: AN 96(3) is modified and superseded and may no longer be relied upon after the date of issuance of this Announcement.
FOR FURTHER INFORMATION: If you have questions about Connecticut taxes, please call the Department of Revenue Services during business hours, Monday through Friday:
Telecommunications Device for the Deaf (TDD/TT) users only, please call 860-297-4911during business hours.
FORMS AND PUBLICATIONS:
You may obtain forms and publications at any hour, seven days a week: