Letter to the Honorable Frederick D. Pablo, Director of Taxation, Regarding Tax Filing Status of Partners of Civil Unions

NEIL ABERCROMBIE GOVERNOR [LOGO] DAVID M. LOUIE ATTORNEY GENERAL RUSSELL A. SUZUKI FIRST DEPUTY ATTORNEY GENERAL # STATE OF HAWAII # DEPARTMENT OF THE ATTORNEY GENERAL TAX DIVISION 425 QUEEN STREET HONOLULU, HAWAII 96813 Tel. No.: (808) 586-1470 October 19, 2011 The Honorable Frederick D. Pablo Director of Taxation State of Hawaii 830 Punchbowl Street Honolulu, Hawaii 96813-5094 Dear Director Pablo: Re: Tax Filing Status of Partners of Civil Unions We are responding to your request in your email dated August 9, 2011, for a legal opinion on the questions presented below. # I. QUESTIONS PRESENTED Based on your email dated August 9, 2011 as clarified by your email dated October 5, 2011, we understand that your questions are as follows: 1. What tax filing status (e.g., single, married filing separately, or married filing jointly) would civil union partners under Act 1, Session Laws of Hawaii 2011 ("State's Civil Union Act"), be eligible to use for filing their Hawaii income tax return? 2. Do the definitions of "marriage" and "spouse" under the Defense of Marriage Act (DOMA), Pub. L. No. 104-199, 110 Stat. 2419, preclude civil union partners recognized in the State's Civil Union Act from filing joint tax returns for Hawaii income tax purposes? # II. BRIEF ANSWERS 1. Under the State's Civil Union Act, civil union partners have the same tax filing status options as married 432159 OP. No. 11-2 The Honorable Frederick D. Pablo October 19, 2011 couples for Hawaii income tax purposes. We, however, bring to your attention that the State's Civil Union Act takes effect on January 1, 2012, and will only apply to taxable years beginning after December 31, 2011. 2. The definitions of "marriage" and "spouse" under DOMA do not preclude civil union partners recognized under the State's Civil Union Act from filing joint tax returns for Hawaii income tax purposes. The filing status of civil union partners may be different for federal and Hawaii income tax purposes after the State's Civil Union Act takes effect, which should be considered when determining the appropriate Hawaii income tax return form. ### III. DISCUSSION Under the State's Civil Union Act, civil union partners have the same tax filing status options as married couples for Hawaii income tax purposes for taxable years beginning after December 31, 2011. The DOMA definitions of "marriage" and "spouse," which expressly limit the terms to couples of the opposite gender, do not preclude civil union partners recognized under the State's Civil Union Act from filing joint tax returns for Hawaii income tax purposes. A. Under the State's Civil Union Act, Civil Union Partners Have the Same Tax Filing Status Options as Married Couples for Hawaii Income Tax Purposes for Taxable Years Beginning After December 31, 2011 Section 23 of article I of the Constitution of the State of Hawaii provides that "[t]he legislature shall have the power to reserve marriage to opposite-sex couples." Under section 572-1.5, Hawaii Revised Statutes (HRS), "[w]henever used in the statute or other laws of Hawaii, 'marriage' means the union licensed under section 572-1." Under section 572-1, HRS, a valid marriage contract "shall be only between a man and a woman." The intent of the State's Civil Union Act, is "to recognize civil unions in Hawaii" but not to "revise the definition or eligibility requirements of marriage under chapter 572, Hawaii Revised Statutes." Act 1, § 1, 2011 Haw. Sess. Laws 1. The legislative history of Senate Bill No. 232, 432159 OP. No. 11-2 The Honorable Frederick D. Pablo October 19, 2011 House Draft 1, which was ultimately enacted as the State's Civil Union Act, is clear: The purpose of this bill is to statutorily establish civil unions in Hawaii, and in so doing provide partners to a civil union the same rights, benefits, and responsibilities granted under chapter 572, Hawaii Revised Statutes (HRS) . . . . . . . It is the intention of your Committee that this measure be liberally construed to provide equality of rights, benefits, protections, and responsibilities to the partners of a civil union. It is not the intention of your Committee to omit any substantive rights, benefits, protections, or responsibilities with respect to the application of this new chapter to any current law . . . H.R. Stand. Comm. Rep. No. 156, 26th Leg., 2011 Reg. Sess., Haw. H.R.J. ___ (2011) (emphasis added). The State's Civil Union Act does not expressly provide a gender requirement for civil unions. Act 1, § 2, 2011 Haw. Sess. Laws 1. Thus, partners of a civil union do not have to be of the opposite gender. The State's Civil Union Act amends the HRS by adding, in part, the following sections in a new chapter: # § -9 Benefits, protections, and responsibilities. Partners to a civil union lawfully entered into pursuant to this chapter shall have all the same rights, benefits, protections, and responsibilities under law, whether derived from statutes, administrative rules, court decisions, the common law, or any other source of civil law, as are granted to those who contract, obtain a license, and are solemnized pursuant to chapter 572. § -11 References and inclusions. A party to a civil union shall be included in any definition or use of the terms "spouse", "family", "immediate family", "dependent", "next of kin", and other terms 432159 OP. No. 11-2 The Honorable Frederick D. Pablo October 19, 2011 that denote the spousal relationship, as those terms are used throughout the laws of the State. Act 1, § 2, 2011 Haw. Sess. Laws 1, 3. The House Committee on Judiciary amended the prior draft of the bill, Senate Draft 1, in part, by "[a]dding three new sections to specifically include civil unions and the partners to a civil union in the application of chapters 231 (administration of taxes), 235 (income taxes), and 236D (estate and transfer tax), HRS" (emphasis added). H.R. Stand. Comm. Rep. No. 156, 26th Leg., 2011 Reg. Sess., Haw. H.R.J. ____ (2011). These three new identically worded sections read as follows: Effect of civil union. All provisions of the Internal Revenue Code referred to in this chapter that apply to a husband and wife, spouses, or person in a legal marital relationship shall be deemed to apply in this chapter to partners in a civil union with the same force and effect as if they were "husband and wife", "spouses", or other terms that describe persons in a legal marital relationship. Act 1, §§ 3, 4, and 5, 2011 Haw. Sess. Laws 3-4. In short, under the State's Civil Union Act, civil union partners have all the same rights, benefits, protections, and responsibilities under the law as married couples who are of the opposite gender. Thus, civil union partners have the same tax filing status options as married couples who are of the opposite gender for Hawaii income tax purposes. We bring to your attention, however, that the State's Civil Union Act takes effect on January 1, 2012, and will only apply to taxable years beginning after December 31, 2011. B. The Definitions of "Marriage" and "Spouse" Under DOMA Do Not Preclude Civil Union Partners from Filing Joint Tax Returns for Hawaii Income Tax Purposes When the bill that was ultimately enacted as DOMA (H.R. 3396) was introduced, as a result of Baehr v. Lewin, 74 Haw. 432159 OP. No. 11-2 The Honorable Frederick D. Pablo October 19, 2011 530, 852 P.2d 44 (1993), the state courts in Hawaii appeared to be on the verge of requiring that Hawaii issue marriage licenses to same-sex couples. H.R. Rep. 104-664, 104th Cong., 2nd Sess. 1996, 1996 U.S.C.C.A.N. 2905, 2906-2910. DOMA, a federal law, was "inspired . . . not by the effect of Baehr v. Lewin inside of Hawaii, but rather the implications that lawsuit threatens to have on the other States and on federal law." Id. at 2910-11 (emphases added). The legislative history of DOMA (H.R. 3396) clearly explains that it is defining "marriage" and "spouse" for federal law purposes only: H.R. 3396, the Defense of Marriage Act, has two primary purposes. The first is to defend the institution of traditional heterosexual marriage. The second is to protect the right of the States to formulate their own public policy regarding the legal recognition of same-sex unions, free from any federal constitutional implications that might attend the recognition by one State of the right for homosexual couples to acquire marriage licenses. To achieve these purposes, H.R. 3396 has two operative provisions. Section 2, entitled "Powers Reserved to the States," provides that no State shall be required to accord full faith and credit to a marriage license issued by another State if it relates to a relationship between persons of the same sex. And Section 3 defines the terms "marriage" and "spouse" for purposes of federal law only to reaffirm that they refer exclusively to relationships between persons of the opposite sex. H.R. Rep. 104-664, 104th Cong., 2d Sess. 1996, 1996 U.S.C.C.A.N. 2905, 2906 (emphasis added). We understand that you are concerned with section 3 (not section 2)¹ of DOMA. And, section 3 of DOMA, codified in 1 ¹ Section 2 of DOMA, codified in 28 U.S.C.A. § 1738C (West 2006), provides that the states are not required to give effect to other states' laws treating same sex unions as a marriage: §1738C. Certain acts, records, and proceedings and the effect thereof 432159 OP. No. 11-2 The Honorable Frederick D. Pablo October 19, 2011 U.S.C.A. § 7 (West 2005), provides that the definition of "marriage" and "spouse" refer exclusively to relationships between persons of the opposite sex for the purposes of federal law: # §7. Definition of "marriage" and "spouse" In determining the meaning of any Act of Congress, or of any ruling, regulation, or interpretation of the various administrative bureaus and agencies of the United States, the word "marriage" means only a legal union between one man and one woman as husband and wife, and the word "spouse" refers only to a person of the opposite sex who is a husband or a wife. [Emphases added.] As clearly recognized by the legislative history of DOMA: No State, territory, or possession of the United States, or Indian tribe, shall be required to give effect to any public act, record, or judicial proceeding of any other State, territory, possession, or tribe respecting a relationship between persons of the same sex that is treated as a marriage under the laws of such other State, territory, possession, or tribe, or a right or claim arising from such relationship. [Emphasis added.] This "merely provides that, in the event Hawaii (or some other State) permits same-sex couples to marry, other States will not be obligated or required, by operation of the Full Faith and Credit Clause of the United States Constitution, to recognize that marriage, or any right or claim arising from it." H.R. Rep. 104-664, 104th Cong., 2d Sess. 1996, 1996 U.S.C.C.A.N. 2905, 2929. "It will not forestall or in any way affect developments in Hawaii, or, for that matter, in any other State." Id. Indeed, nothing in section 2 of DOMA "would either prevent a State on its own from recognizing same-sex marriages, or from choosing to give binding legal effect to same-sex marriage license issued by another State." Id. Legislative history indicates that: [I]t is important that States be able to apply their own laws, expressing their own public policy, on this matter. Section 2 [of DOMA] does not, of course, determine the choice-of-law issue; when a State that does not itself permit homosexual couples to marry is confronted with a same-sex marriage license from another State, that State will still have to decide whether to recognized the couple as married. But Section 2 does mean that the Full Faith and Credit Clause will play no role in that choice of law determination, thereby improving the ability of various States to resist recognizing same-sex marriage celebrated elsewhere. Id. at 2930. 432159 OP. No. 11-2 The Honorable Frederick D. Pablo October 19, 2011 The most important aspect of Section 3 [of DOMA] is that it applies to federal law only; in the words of the statute, these definitions apply only "[i]n determining the meaning of any Act of Congress, or of any ruling, regulation, or interpretation of the various administrative bureaus and agencies of the United States." It does not, therefore, have any effect whatsoever on the manner in which any State (including, of course, Hawaii) might choose to define these words. Section 3 applies only to federal law, and will provide the meaning of these two words only insofar as they are used in federal law. . . . . If Hawaii or some other State eventually recognizes homosexual "marriage," Section 3 will mean simply that the marriage will not be recognized as a "marriage" for purposes of federal law. Other than this narrow federal requirement, the federal government will continue to determine marital status in the same manner it does under current law. Whether and to what extent benefits are available to married couples under state law will be available to homosexual couples is purely a matter of state law, and Section 3 in no way affects that question. H.R. Rep. 104-664, 104th Cong., 2d Sess. 1996, 1996 U.S.C.C.A.N. 2905, 2934-35 (emphases added). Thus, the definitions of "marriage" and "spouse" under DOMA are applicable for only federal law purposes. Further, it is state law that determines whether and to what extent benefits are available to couples of the same gender. For Hawaii income tax purposes, section 235-93, HRS, in part, provides: §235-93 Joint returns. (a) A husband and wife, having that status for purposes of the Internal Revenue Code and entitled to make a joint federal return for the taxable year, may make a single return jointly of taxes under this chapter for the taxable year. [Emphasis added.] 432159 OP. No. 11-2 The Honorable Frederick D. Pablo October 19, 2011 In accord, section 18-235-93, Hawaii Administrative Rules (HAR), currently provides that "[a] husband and wife, as defined in section 235-1, HRS, may file a single joint return" (emphasis added). Under section 235-1, HRS, "husband and wife" "means the same as in the Internal Revenue Code." Under the State's Civil Union Act, however, pursuant to section -11 of the new chapter added to the HRS, "[a] party to a civil union shall be included in any definition or use of the terms 'spouse' . . . and other terms that denote the spousal relationship, as those terms are used throughout the laws of the State." Act 1, § 2, 2011 Haw. Sess. Laws 3. The State's Civil Union Act further provides that "[a]ll provisions of the Internal Revenue Code referred to in this chapter [235] that apply to a husband and wife, spouses, or person in a legal marital relationship shall be deemed to apply in this chapter to partners in a civil union with the same force and effect as if they were 'husband and wife', 'spouses', or other terms that describe persons in a legal marital relationship." Act 1, § 4, 2011 Haw. Sess. Laws 4. It, however, appears that only married couples who are of the opposite gender have the status of husband and wife for the purpose of the Internal Revenue Code (IRC) and are entitled to make a joint federal income tax return. Section 6013, IRC, provides that only a husband and wife may file joint federal income tax returns: §6013. Joint returns of income tax by husband and wife (a) Joint returns.--A husband and wife may make a single return jointly of income taxes under subtitle A . . . . [Emphasis added.] The IRC itself does not appear to limit the term "husband and wife" to a couple of the opposite gender.² Under section 3 of ² Section 7701, IRC, provides in part: §7701. Definitions. (a) When used in this title, where not otherwise distinctly expressed or manifestly incompatible with the intent thereof -- (17) Husband and wife. - As used in sections 682 and 2516, if the husband and wife therein referred to are divorced, wherever 432159 OP. No. 11-2 The Honorable Frederick D. Pablo October 19, 2011 DOMA, codified in 1 U.S.C.A. § 7 (West 2005), however, the terms "marriage" and "spouse" are expressly limited to relationships between persons of the opposite sex for the purposes of federal law, which includes the IRC: # §7. Definition of "marriage" and "spouse" In determining the meaning of any Act of Congress, or of any ruling, regulation, or interpretation of the various administrative bureaus and agencies of the United States, the word "marriage" means only a legal union between one man and one woman as husband and wife, and the word "spouse" refers only to a person of the opposite sex who is a husband or a wife. [Emphases added.] Thus, under DOMA, only married couples who are of the opposite gender have the status of "husband and wife" for purposes of the IRC and are entitled to file federal income tax returns under section 6013, IRC. Prior to the State's Civil Union Act, because only married couples who were of the opposite gender had the status of husband and wife for purposes of the IRC and were entitled to file federal income tax returns, only married couples who were of the opposite gender were eligible to file joint Hawaii income tax returns under section 235-93, HRS. Under the State's Civil Union Act, however, it is because married couples who are of the opposite gender are eligible to file joint Hawaii income tax returns under section 235-93, HRS, that the civil union partners are also eligible to file joint Hawaii income tax returns. As previously discussed, the State's Civil Union Act expressly provides, pursuant to section -9 of the new chapter added to the HRS, that appropriate to the meaning of such sections, the term "wife" shall be read "former wife" and the term "husband" shall be read "former husband"; and, if the payments described in such sections are made by or on behalf of the wife or former wife to the husband or former husband instead of vice versa, wherever appropriate to the meaning of such section, the term "husband" shall be read "wife" and the term "wife" shall be read "husband." [Emphasis added.] This definition does not confine a "husband and wife" to a couple of the opposite gender. Moreover, this definition is only for the purposes of sections 682 and 2561, IRC. Section 682, IRC, relates to income of an estate or trust in case of divorce, etc. Section 2561, IRC, relates to certain property settlements. 432159 OP. No. 11-2 The Honorable Frederick D. Pablo October 19, 2011 "[p]artners to a civil union lawfully entered into pursuant to this chapter shall have all the same rights, benefits, protections, and responsibilities under law, whether derived from statutes, administrative rules, court decisions, the common law, or any other source of civil law, as are granted to those who contract, obtain a license, and are solemnized pursuant to chapter 572." Act 1, § 2, 2011 Haw. Sess. Laws 3. Furthermore, as previously noted, the House Committee on Judiciary, which recommended the draft of the bill ultimately enacted as the State's Civil Union Act, expressly stated that, "[i]t is the intention of your Committee that this measure be liberally construed to provide equality of rights, benefits, protections, and responsibilities to the partners of a civil union." H.R. Stand. Comm. Rep. No. 156, 26th Leg., 2011 Reg. Sess., Haw. H.R.J. ___ (2011). Thus, it is clear that if a married couple of the opposite gender is eligible to file joint Hawaii income tax returns, under the State's Civil Union Act, partners to a civil union are also eligible to do so. Thus, the definitions of "marriage" and "spouse" under DOMA may preclude civil union partners of the same gender under the State's Civil Union Act from filing jointly for federal income tax purposes, but they do not preclude civil union partners from filing joint tax returns for Hawaii income tax purposes. This may result in different filing status for civil union partners for federal and Hawaii income tax purposes, which should be considered for the purpose of determining the appropriate Hawaii income tax return form. We suggest that the Department consider how other states have addressed similar situations. For example, under Connecticut law, "[t]wo persons who are parties to a civil union . . . that has not been dissolved or annulled by the parties or merged into a marriage by operation of law . . . as of October 1, 2010, shall be deemed to be married . . . on said date and such civil union shall be merged into such marriage by operation of law on said date." Conn. Gen. Stat. Ann. § 46b-38rr (West Supp. 2011). And, the provisions of its income tax laws "shall apply to parties to a civil union recognized under the laws of this state [Connecticut] as if federal income tax law and federal estate and gift tax law recognized such a civil union in the same manner as Connecticut law." Conn. Gen. Stat. Ann. § 46b- 432159 OP. No. 11-2 The Honorable Frederick D. Pablo October 19, 2011 38pp (West 2009). The Connecticut Resident Income Tax Return Form CT-1040 for 2010 provides for seven filing statuses: (1) single; (2) filing jointly for federal and Connecticut; (3) filing jointly for Connecticut only; (4) filing separately for federal and Connecticut; (5) filing separately for Connecticut only; (6) head of household; and (7) qualifying widow(er) with dependent child. For your convenience, a copy of the form is attached as Exhibit 1. Another example is New Jersey. Under that state's law, "[c]ivil union couples shall have all of the same benefits, protections and responsibilities under law, whether they derive from statute, administrative or court rule, public policy, common law or any other source of civil law, as are granted to spouses in a marriage." N.J. Stat. Ann. § 37:1-31(a) (West Supp. 2011). New Jersey law also provides that the "laws relating to taxes imposed by the State or a municipality including but not limited to homestead rebate tax allowances, tax deductions based on marital status or exemptions from realty transfer tax based on marital status" "shall apply in like manner to civil union couples." N.J. Stat. Ann. § 37:1-32(n) (West Supp. 2011). It further provides that "[w]henever in any law, rule, regulation, judicial or administrative proceeding or otherwise, reference is made to 'marriage,' 'husband,' 'wife,' 'spouse,' 'family,' 'immediate family,' 'dependent,' 'next of kin,' 'widow,' 'widower,' 'widowed' or another word which in a specific context denotes a marital or spousal relationship, the same shall include a civil union pursuant to the provisions of this act." N.J. Stat. Ann. § 37:1-33 (West Supp. 2011). In Quarto v. Adams, 395 N.J. Super. 502, 929 A.2d 1111 (N.J. Super. Ct. App. Div. 2007), the Superior Court of New Jersey recognized that N.J. Stat. Ann. § 54A:8-3.1(b) (West 2002) requires that married persons who file separate federal income tax returns with the Internal Revenue Service must also file "separate returns for New Jersey income tax purposes." Quarto at 517 n.12, 929 A.2d at 1120 n.12. The Superior Court of New Jersey in Quarto, however, was advised that the Acting Director of the Division of Taxation of the New Jersey Department of the Treasury and the Attorney General of New Jersey were evaluating the continued vitality of the statute in light of caselaw and supervening enactment of the civil union act. Id. And, the Superior Court of New Jersey accepted their representation that the taxpayers in Quarto would be permitted to file a joint state return after the effective date of the 432159 OP. No. 11-2 The Honorable Frederick D. Pablo October 19, 2011 civil union law. Id. The State of New Jersey Income Tax-Resident Return Form NJ-1040 for 2010 provides for five filing statuses: (1) single; (2) married/civil union couple, filing joint return; (3) married/civil union partner, filing separate return; (4) head of household; and (5) qualifying widow(er)/surviving civil union partner. For your convenience, a copy of the form is attached as Exhibit 2. # IV. CONCLUSION Based on the foregoing, civil union partners have the same tax filing status options as married couples for Hawaii income tax purposes for taxable years beginning after December 31, 2011. The definitions of "marriage" and "spouses" under DOMA, which are limited to one man and one woman, do not preclude civil union partners from filing joint tax returns for Hawaii income tax purposes. We add that the tax filing status of civil union partners, however, may be different for federal and Hawaii income tax purposes after the State's Civil Union Act takes effect, which should be considered when determining the appropriate Hawaii income tax form. If there are any questions or problems, please feel free to contact us. Very truly yours, Mary Bahng Yokota Mary Bahng Yokota Deputy Attorney General APPROVED: David M. Louie David M. Louie Attorney General Attachments 432159 OP. No. 11-2 Form CT-1040 Connecticut Resident Income Tax Return For DRS Use Only 20 2010 CT-1040 # Complete return in blue or black ink only. # Taxpayers must sign declaration on reverse side. For the year January 1 - December 31, 2010, or other taxable year beginning: , 2010 and ending: Filing Status - Check only one box. ☐ Single ☐ Filing jointly for federal and Connecticut ☐ Filing jointly for Connecticut only ☐ Head of household ☐ Qualifying widow(er) with dependent child Your Social Security Number ☐ Check if deceased Spouse Social Security Number ☐ Check if deceased Your first name MI Last name (If two last names, insert a space between names.) If joint return, spouse's first name MI MI Last name (If two last names, insert a space between names.) Mailing address (number and street, apartment number, suite number, PO Box) City, town, or post office (If town is two words, leave a space between the words.) State ZIP code ☐ Check here if you do not want forms sent to you next year. This does not relieve you of your responsibility to file. ☐ Check here if you filed Form CT-2210 and checked any boxes on Part 1. ☐ Form CT-8379 Form CT-1040CRC Check here if you are filing these forms and attach the form(s) to the front of the return. 2 1. Federal adjusted gross income from federal Form 1040, Line 37; Form 1040A, Line 21; or Form 1040EZ, Line 4 2. Additions to federal adjusted gross income from Schedule 1, Line 39 3. Add Line 1 and Line 2. 4. Subtractions from federal adjusted gross income from Schedule 1, Line 50 5. Connecticut adjusted gross income: Subtract Line 4 from Line 3. 6. Income tax from tax tables or Tax Calculation Schedule: See instructions, Page 15. 7. Credit for income taxes paid to qualifying jurisdictions from Schedule 2, Line 59 8. Subtract Line 7 from Line 6. If Line 7 is greater than Line 6, enter "0." 9. Connecticut alternative minimum tax from Form CT-6251 10. Add Line 8 and Line 9. 11. Credit for property taxes paid on your primary residence, motor vehicle, or both: Complete and attach Schedule 3 on Page 4 or your credit will be disallowed. 12. Subtract Line 11 from Line 10. If less than zero, enter "0." 13. Total allowable credits from Schedule CT-IT Credit, Part I, Line 11 14. Connecticut income tax: Subtract Line 13 from Line 12. If less than zero, enter "0." 15. Individual use tax from Schedule 4, Line 69: If no tax is due, enter "0." 16. Add Line 14 and Line 15. Whole Dollars Only Clip check here. Do not staple. Do not send W-2 or 1099 forms. Due date: April 15, 2011 - Attach a copy of all applicable schedules and forms to this return. For a faster refund, file your return electronically at www.ct.gov/DRS. EXHIBIT 1 2010 Form CT-1040 - Page 2 of 4 Your Social Security Number 17. Enter amount from Line 16. 3 Column A Employer's federal ID No. from Box b of W-2, or payer's federal ID No. from Form 1099 Column B Connecticut wages, tips, etc. Column C Connecticut income tax withheld W-2 and 1099 information Only enter information from your W-2 and 1099 forms if Connecticut income tax was withheld. 18h. Additional CT withholding from Supplemental Schedule CT-1040WH 18. Total Connecticut income tax withheld: Add amounts in Column C and enter here. You must complete Columns A, B, and C or your withholding will be disallowed. 19. All 2010 estimated tax payments and any overpayments applied from a prior year 20. Payments made with Form CT-1040 EXT (Request for extension of time to file) 21. Total payments: Add Lines 18, 19, and 20. 4 22. Overpayment: If Line 21 is more than Line 17, subtract Line 17 from Line 21. 23. Amount of Line 22 overpayment you want applied to your 2011 estimated tax 24. Total contributions of refund to designated charities from Schedule 5, Line 70 25. Refund: Subtract Lines 23 and 24 from Line 22. For faster refund, use Direct Deposit by completing Lines 25a, 25b, and 25c. 25a. Checking Savings 25b. Routing number 25c. Account number 25d. Will this refund go to a bank account outside the U.S.? ☐ Yes 5 26. Tax due: If Line 17 is more than Line 21, subtract Line 21 from Line 17. 27. If late: Enter penalty. Multiply Line 26 by 10% (.10). 28. If late: Enter interest. Multiply Line 26 by number of months or fraction of a month late, then by 1% (.01). 29. Interest on underpayment of estimated tax from Form CT-2210: See instructions, Page 17. 30. Total amount due: Add Lines 26 through 29. 6 Declaration: I declare under penalty of law that I have examined this return (including any accompanying schedules and statements) and, to the best of my knowledge and belief, it is true, complete, and correct. I understand the penalty for willfully delivering a false return or document to DRS is a fine of not more than $5,000, or imprisonment for not more than five years, or both. The declaration of a paid preparer other than the taxpayer is based on all information of which the preparer has any knowledge. Sign Here Keep a copy for your records. Your signature Third Party Designee - Complete the following to authorize DRS to contact another person about this return. Designee's name Telephone number Personal identification number (PIN) Complete applicable schedules on Pages 3 and 4 and send all four pages of the return to DRS. 2010 Form CT-1040 - Page 3 of 4 Your Social Security Number □□□ - □□ - □□□□ ## Schedule 1 - Modifications to Federal Adjusted Gross Income See instructions, Page 18. 31. Interest on state and local government obligations other than Connecticut 32. Mutual fund exempt-interest dividends from non-Connecticut state or municipal government obligations 33. Cancellation of debt income: See instructions. 34. Taxable amount of lump-sum distributions from qualified plans not included in federal adjusted gross income 35. Beneficiary's share of Connecticut fiduciary adjustment: Enter only if greater than zero. 36. Loss on sale of Connecticut state and local government bonds 37. Domestic production activity deduction from federal Form 1040, Line 35 38. Other - specify 39. Total additions: Add Lines 31 through 38. Enter here and on Line 2. 40. Interest on U.S. government obligations 41. Exempt dividends from certain qualifying mutual funds derived from U.S. government obligations 42. Social Security benefit adjustment: See Social Security Benefit Adjustment Worksheet, Page 20. 43. Refunds of state and local income taxes 44. Tier 1 and Tier 2 railroad retirement benefits and supplemental annuities 45. 50% of military retirement pay 46. Beneficiary's share of Connecticut fiduciary adjustment: Enter only if less than zero. 47. Gain on sale of Connecticut state and local government bonds 48. Connecticut Higher Education Trust (CHET) contributions Enter CHET account number: (can be up to 14 digits) 49. Other - specify: Do not include out of state income. 50. Total subtractions: Add Lines 40 through 49. Enter here and on Line 4. Enter all items as positive numbers. ## Schedule 2 - Credit for Income Taxes Paid to Qualifying Jurisdictions You must attach a copy of your return filed with the qualifying jurisdiction(s) or your credit will be disallowed. 51. Modified Connecticut adjusted gross income See instructions, Page 24. 52. Enter qualifying jurisdiction's name and two-letter code: See instructions, Page 24. 53. Non-Connecticut income included on Line 51 and reported on a qualifying jurisdiction's income tax return: Complete Schedule 2 Worksheet, Page 24. 54. Divide Line 53 by Line 51. May not exceed 1.0000 55. Income tax liability: Subtract Line 11 from Line 6. 56. Multiply Line 54 by Line 55. 57. Income tax paid to a qualifying jurisdiction See instructions, Page 25. 58. Enter the lesser of Line 56 or Line 57. 59. Total credit: Add Line 58, all columns. Enter here and on Line 7. Complete applicable schedules on Page 4 and send all four pages of the return to DRS. 2010 Form CT-1040 - Page 4 of 4 Your Social Security Number - □□ - □□ - □□□□ # Schedule 3 - Property Tax Credit See instructions, Page 25. | Qualifying Property | Primary Residence | Auto 1 | Auto 2 (joint returns or qualifying widow(er) only) | | --- | --- | --- | --- | | Name of Connecticut Tax Town or District | • | • | • | | Description of Property If primary residence, enter street address. If motor vehicle, enter year, make, and model. | • | • | • | | Date(s) Paid | • __/__/2010 • __/__/2010 | • __/__/2010 • __/__/2010 | • __/__/2010 • __/__/2010 | | Amount Paid | 60. ☐☐.☐☐.00 | 61. ☐☐.☐☐.00 | 62. ☐☐.☐☐.00 | 63. Total property tax paid: Add Lines 60, 61, and 62. 64. Maximum property tax credit allowed 65. Enter the lesser of Line 63 or Line 64. 66. Enter the decimal amount for your filing status and Connecticut AGI from the Property Tax Credit Table exactly as it appears on Page 27. If zero, enter the amount from Line 65 on Line 68. 67. Multiply Line 65 by Line 66. 68. Subtract Line 67 from Line 65. Enter here and on Line 11. Attach Schedule 3 to your return or your credit will be disallowed. 64. • 500.00 65. • ☐☐.00 66. • ☐.☐☐ 67. • ☐☐.00 68. ☐☐.00 # Schedule 4 - Individual Use Tax - Do you owe use tax? See instructions, Page 28. Complete this worksheet to calculate your Connecticut individual use tax liability and attach Page 4 to your return. | Column A | Column B | Column C | Column D | Column E | Column F | Column G | | --- | --- | --- | --- | --- | --- | --- | | Date of purchase | Description of goods or services | Retailer or service provider | Purchase price | CT tax due (.06 X Column D) | Tax, if any, paid to another jurisdiction | Balance due (Column E minus Column F but not less than zero) | | • | | | | | | | | • | | | | | | | | • | | | | | | | | • | | | | | | | | • | | | | | | | | • Total of individual purchases under $300 not listed above | | | | | | | 69. Individual use tax: Add all amounts for Column G. Enter here and on Line 15. • 69. ☐☐.☐☐.00 # Schedule 5 - Contributions to Designated Charities 70a. AIDS Research 70b. Organ Transplant 70c. Endangered Species/Wildlife 70d. Breast Cancer Research 70e. Safety Net Services 70f. Military Family Relief Fund 70. Total Contributions: Add Lines 70a through 70f. Enter amount here and on Line 24. 70. ☐☐.☐☐.00 | Use envelope provided, with correct mailing label, or mail to: | | | --- | --- | | For refunds and all other tax forms without payment: Department of Revenue Services PO Box 2976 Hartford CT 06104-2976 | For all tax forms with payment: Department of Revenue Services PO Box 2977 Hartford CT 06104-2977 | Make your check payable to Commissioner of Revenue Services To ensure proper posting, write your SSN(s) (optional) and "2010 Form CT-1040" on your check. 2010 INCOME TAX-RESIDENT RETURN 5R For Tax Year Jan.-Dec. 31, 2010, Or Other Tax Year Beginning ____, 2010, Month Ending ____, 20____ ↓ IMPORTANT! YOU MUST ENTER YOUR SSN (s). ↓ Fill in ☐ if application for Federal extension is enclosed or enter confirmation # | Your Social Security Number | | Last Name, First Name and Initial (Last Name and First Name and Initial of each - Enter spouse/CU partner last name ONLY if different) | | | | --- | --- | --- | --- | --- | | Spouse's/CU Partner's Social Security Number | | Home Address (Number and Street, including apartment number or rural route) | | | | County/Municipality Code (See Table p. 51) | | City, Town, Post Office | State | Zip Code | | NJ RESIDENCY STATUS If you were a New Jersey resident for ONLY part of the taxable year, give the period of New Jersey residency: From 10/30/2010 To 10/30/2010 | | | | | | FILING STATUS | (Fill in only one) 1. ☐ Single 2. ☐ Married/CU Couple, filing joint return 3. ☐ Married/CU Partner, filing separate return. Enter Spouse's/CU Partner's Social Security Number in the boxes above 4. ☐ Head of household 5. ☐ Qualifying widow(er)/Surviving CU Partner | EXEMPTIONS | 6. Regular ☐ Yourself ☐ Spouse/CU Partner ☐ Domestic Partner 7. Age 65 or Over ☐ Yourself ☐ Spouse/CU Partner 8. Blind or Disabled ☐ Yourself ☐ Spouse/CU Partner 9. Number of your qualified dependent children 10. Number of other dependents 11. Dependents attending colleges 12. Totals (For Line 12a - Add Lines 6, 7, 8, and 11) (For Line 12b - Add Lines 9 and 10) | ENTER NUMBERS HERE 6 7 8 9 10 11 12a 12b | | | | | | | | DEPENDENTS | 13. Dependent's Last Name, First Name, Middle Initial Dependent's Social Security Number Birth Year | | Fill in oval if dependent does not have health insurance including NJ-FamilyCare/Medicaid, Medicare, private or other (see instructions) | | | | a | | | | | | b | | | | | | c | | | | | | d | | | | | GUBERNATORIAL ELECTIONS FUND ▶ Do you wish to designate $1 of your taxes for this fund? ☐ Yes ☐ No If joint return, does your spouse/CU partner wish to designate $1? ☐ Yes ☐ No | | | Note: If you fill in the Yes oval(s), it will not increase your tax or reduce your refund. | | | Under the penalties of perjury, I declare that I have examined this income tax return, including accompanying schedules and statements, and to the best of my knowledge and belief, it is true, correct, and complete. If prepared by a person other than taxpayer, this declaration is based on all information of which the preparer has any knowledge. Your Signature ________________________ Date __________ Spouse's/CU Partner's Signature (if filing jointly, BOTH must sign) ________________________ Date __________ If you do not need forms mailed to you next year, fill in (See instruction page 16) ________________________ I authorize the Division of Taxation to discuss my return and enclosures with my preparer (below) ________________________ Paid Preparer's Signature ________________________ Federal Identification Number ________________________ Firm's Name ________________________ Federal Employer Identification Number ________________________ | | | Pay amount on Line 55 in full, Write Social Security number(s) on check or money order and make payable to: STATE OF NEW JERSEY - TGI Mail your check or money order with your NJ-1040-V payment voucher and your return to: NJ Division of Taxation Revenue Processing Center PO Box 111 Trenton, NJ 08645-0111 IF REFUND: NJ Division of Taxation Revenue Processing Center PO Box 555 Trenton, NJ 08647-0555 You may also pay by e-check or credit card. For more information go to: www.state.nj.us/treasury/taxation | | Division Use 1 2 3 4 5 6 7 8 9 10 11 12a 12b 13 14 15 16 17 18 19 20 EXHIBIT 2 ... NJ-1040 (2010) Page 2 | Name(s) as shown on Form NJ-1040 | | Your Social Security Number | | | --- | --- | --- | --- | | 14. Wages, salaries, tips, and other employee compensation (Enclose W-2) Be sure to use State wages from Box 16 of your W-2(s). See instructions | 14 | | | | 15a. Taxable interest income (See instructions) (Enclose Federal Schedule B if over $1,500) | 15a | | | | 15b. Tax-exempt interest income (See instructions) (Enclose Schedule) DO NOT include on Line 15a | 15b | | | | 16. Dividends | 16 | | | | 17. Net profits from business (Enclose copy of Federal Schedule C, Form 1040) | 17 | | | | 18. Net gains or income from disposition of property (Schedule B, Line 4) | 18 | | | | 19. Pensions, Annuities, and IRA Withdrawals (See instruction page 24) | 19 | | | | 20. Distributive Share of Partnership Income (See instruction page 27) (Enclose Schedule) | 20 | | | | 21. Net pro rata share of S Corporation Income (See instruction page 27) (Enclose Schedule) | 21 | | | | 22. Net gain or income from rents, royalties, patents & copyrights (Schedule C, Line 3) | 22 | | | | 23. Net Gambling Winnings (See instruction page 27) | 23 | | | | 24. Alimony and separate maintenance payments received | 24 | | | | 25. Other (Enclose Schedule) (See instruction page 28) | 25 | | | | 26. Total Income (Add Lines 14, 15a, and 16 through 25) | 26 | | | | 27a. Pension Exclusion (See instruction page 28) | 27a | | | | 27b. Other Retirement Income Exclusion (See worksheet and instr. page 30) | 27b | | | | 27c. Total Exclusion Amount (Add Line 27a and Line 27b) | 27c | | | | 28. New Jersey Gross Income (Subtract Line 27c from Line 26) See instruction page 30. | 28 | | | | 29. Total Exemption Amount (See instruction page 30 to calculate amount) (Part-Year Residents see instruction page 9) | 29 | | | | 30. Medical Expenses (See Worksheet and instruction page 31) | 30 | | | | 31. Alimony and Separate Maintenance Payments | 31 | | | | 32. Qualified Conservation Contribution | 32 | | | | 33. Health Enterprise Zone Deduction | 33 | | | | 34. Total Exemptions and Deductions (Add Lines 29, 30, 31, 32, and 33) | 34 | | | | 35. Taxable Income (Subtract Line 34 from Line 28) If zero or less, MAKE NO ENTRY. | 35 | | | | 36a. Total Property Taxes Paid (See instruction page 32) | 36a | | | | 36b. Fill in oval if you were a New Jersey homeowner on October 1, 2010. | | | | | 36c. Property Tax Deduction (See instruction page 35) | 36c | | | | 37. NEW JERSEY TAXABLE INCOME (Subtract Line 36c from Line 35) If zero or less, MAKE NO ENTRY. | 37 | | | | 38. TAX (From Tax Table, page 53) | 38 | | | CONTINUE TO PAGE 3 • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • NJ-1040 (2010) Page 3 Name(s) as shown on Form NJ-1040 Your Social Security Number 39. TAX (From Line 38, page 2) 40. Credit For Income Taxes Paid to Other Jurisdictions Enter other jurisdiction code (See instructions) 41. Balance of Tax (Subtract Line 40 from Line 39) 42. Sheltered Workshop Tax Credit 43. Balance of Tax after Credit (Subtract Line 42 from Line 41) 44. Use Tax Due on Out-of-State Purchases (See instruction page 38) If no Use Tax, enter ZERO (0.00). 45. Penalty for Underpayment of Estimated Tax. Fill in ☐ if Form NJ-2210 is enclosed. 46. Total Tax and Penalty (Add Lines 43, 44, and 45) 47. Total New Jersey Income Tax Withheld (From enclosed Forms W-2 and 1099) 48. Property Tax Credit (See instruction page 35) 49. New Jersey Estimated Tax Payments/Credit from 2009 tax return 50. New Jersey Earned Income Tax Credit (See instruction page 40) Fill in only one Fill in oval if you had the IRS figure your Federal Earned Income Credit Fill in oval if you are a CU couple claiming the NJ Earned Income Tax Credit 51. EXCESS New Jersey UI/WF/SWF Withheld (See instr. page 40) (Enclose Form NJ-2450) 52. EXCESS New Jersey Disability Insurance Withheld (See instr. page 40) (Enclose Form NJ-2450) 53. EXCESS New Jersey Family Leave Insurance Withheld (see instr. page 40) Enclose Form NJ-2450) 54. Total Payments/Credits (Add Lines 47 through 53) 55. If Line 54 is LESS THAN Line 46, enter AMOUNT YOU OWE Fill in ☐ if paying by e-check or credit card. If you owe tax, you may make a donation by entering an amount on Lines 58, 59, 60, 61, 62 and/or 63 and adding this to your payment amount. 56. If Line 54 is MORE THAN Line 46, enter OVERPAYMENT Deductions from Overpayment on Line 56 which you elect to credit to: 57. Your 2011 tax N.J. Endangered Wildlife Fund N.J. Children's Trust Fund To Prevent Child Abuse N.J. Vietnam Veterans' Memorial Fund N.J. Breast Cancer Research Fund U.S.S. New Jersey Educational Museum Fund 63. Other Designated Contribution See instruction page 41 64. Total Deductions from Overpayment (Add Lines 57 through 63) 65. REFUND (Amount to be sent to you. Subtract Line 64 from Line 56) ENTER AMOUNT OF CONTRIBUTION SIGN YOUR RETURN ON PAGE 1