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State tax filing
Thank you. I can see on line 50, the full amount is being taken on your return. So, I traced it through CT. That money plus exempt dividends are combined for line 52, a subtraction that carries to line 4.
CT line 1 - starts with your federal AGI
Line 2 - additions
Line 3 - subtotals
Line 4 - your line 52 subtraction
Line 5 - CT AGI.
Line 6 - CT income
About half the states use the ratio method of taxation, which includes CT and is causing your concern. CT is one of the states that has found a way to garner the highest tax possible. CT determines the tax on your entire income, to put you in the highest bracket possible, then multiplies by the percentage of income earned there.
Because the $10,000 is part of your line 5 CT AGI, the needle barely moves with it. If CT taxed only CT income using their tax brackets, you would see the difference.
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