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Connecticut Gift Tax

What is Gift Tax Connecticut?

Gift Tax, sometimes confused with Inheritance / Estate Tax, is a tax on the transfer of cash/asset/property by one person to another while receiving nothing in return.  The tax applies whether the donor intends the transfer to be a gift or not.  The Gift Tax and Estate Tax are interrelated.  The IRS allows you to give up to $14,000 per year to any number of people without incurring any gift taxes.

If the gift exceeds $14,000 in a given year, the person who makes the gift, not the recipient, has to file a gift tax return and pay any tax owed.  The giver has to file the tax form 709.  However, there is $5,430,000 lifetime exemption before you have to pay gift.

The Gift tax is very correlated with the estate tax.  Any gift that exceeds the annual exemption of $14,000 reduces your estate tax lifetime exemption of $5,430,000.  For example, you give your son $114,000 in 2015.   $14,000 is exempted while you have to file a gift tax return and report that you used $100,000 of your $5,430,000 lifetime exemption.

How much is Connecticut Gift Tax?

Connecticut is the Only State in United States that has a Gift Tax.

The first $2 million is exempt from Connecticut gift tax.  After $2 million the tax rate is 7.2% and goes up to 12% for any gift that exceeds over $10,100,000.

How to file Connecticut Gift Tax?

Connecticut is the Only State in United States that has a Gift Tax.

If you were required to file a Federal gift tax return, you may also be required to file a Connecticut gift tax return. Whether or not you must file depends upon whether you are a resident or a nonresident of Connecticut.

A Connecticut resident who made a gift of real or personal property during the calendar year and who is required to file a Federal gift tax return, must file a Connecticut gift tax return (Form CT-709) if:

  • The gift is of any intangible property (such as cash);
  • The gift is of real or personal property located in Connecticut.

A nonresident who made a gift of real or personal property and who is required to file a federal gift tax return must file a Connecticut gift tax return (Form CT-709) if:

  • The gift is of intangible property within Connecticut used in carrying on a trade or business within Connecticut;
  • The gift is of real or personal property located in Connecticut.

If the total Estate asset (property, cash, etc.) is over $5,430,000, it is subject to the Federal Estate Tax (Form 706).

Get more information on Connecticut Gift Tax:

You can call IRS directly at 800-829-1040 or call the Connecticut Department of Revenue regarding gift and estate tax.

Connecticut Department of Revenue

  • 860-297-5962 (Hartford calling area or from out-of-state); or
  • 1-800-382-9463 (toll-free from within Connecticut)