Connecticut recently released an updated version of CT-945, Annual Reconciliation of Withholding for Non-payroll Amounts (for TY 2017). CT-945 is the state-specific reconciliation form that is filed annually to report non-payroll amounts subject to Connecticut income tax withholding.
There is one important change to the most recent version of this form, which has to do with pension and annuity reporting:
- Effective January 1, 2018, payers who maintain an office or transact business in Connecticut and make payments of taxable pensions or annuity distributions to a resident individual are required to deduct and withhold tax from such distributions. This requirement applies to distributions from an employer pension, an annuity, a profit sharing plan, a stock bonus, a deferred compensation plan, an individual retirement arrangement, an endowment or a life insurance contract.