Connecticut - Change to Pass-Through Entity Tax
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Public Act 18-49, passed on May 31, 2018, included a new Pass-Through Entity Tax which changed how income earned by S corporations and partnerships is taxed. For tax years starting on or after January 1, 2018, the partnership or S corporation pays tax on its own income instead of passing through the tax to the partners, shareholders, or members. Partners, shareholders, and members are allowed a credit for the tax paid by their pass-through entity.

Pass-Through Entities must pay estimated tax as outlined in the Guidelines below. Individuals with pass through income may no longer need to make estimated payments for their pass-through income.

Individuals who do make estimated payments for their pass-through income may be able to re-characterize the payments so that the payment is applied to the entity’s tax liability instead of the individual’s tax liability.

Both individuals and entities may log into myconneCT to make estimated payments.

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Note that any link in the information above is updated each year automatically and will take you to the most recent version of the document at the time it is accessed.