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For most filers, the ideal withholding amount is as close as possible to their total tax bill; that way, they're receiving as much money in their paychecks as possible, and they're not going to face an unpleasant surprise in the form of a huge tax bill when they file.
Pension recipients need to file Form CT-W4P with their pension payer so that the correct amount of tax is withheld. If the form is not filed with the payer, the payer will withhold at a rate of 6.99%.
Either enter Withholding Code "E" on Line 1 which will result in $0 withholding; or enter Withholding Code ?E? on Line 1 and a dollar amount on Line 2 for a specific amount to be withheld. If neither of these options are indicated, your payer will withhold at 6.99%.
You must begin withholding at the highest marginal rate of 6.99%, from each employee who claimed exempt status from Connecticut income tax withholding in the prior year and who did not provide a new Form CT-W4 on or before February 15 of the current year. See Employees Claiming Exemption on Page 10.
If you are a married individual filing jointly and you and your spouse both select Withholding Code ?A?, you may have too much or too little Connecticut income tax withheld from your pay. This is because the phaseout of the personal exemption and credit is based on your combined incomes.