CT Senior 65+ home sale gain lifetime exclusion - where to report?

[ML2026]

We sold our house that we lived in for the last 40 years and we are both over 65+. CT allows a 1 time lifetime home sale gain exclusion that we qualify for. Where do we make this adjustment to exclude the remaining gain? Turbotax CT state forms still shows the capital gain that remains after the $500K exemption. 

[CesarJ]

Connecticut offers a one-time, lifetime home sale gain exclusion for seniors aged 65 or older. To report this exclusion in TurboTax for your CT state return:

1. Navigate to the State section and select Connecticut (CT).
2. Go to the Income section and locate where the capital gain from your home sale is reported.
3. Look for the CT Senior Home Sale Exclusion or similar adjustment option.
4. Enter the amount of gain you want to exclude under this program to reduce the taxable gain.

If TurboTax CT form still shows gain after the $500K federal exemption, you must manually enter the Connecticut senior exclusion amount to adjust the gain further.

This adjustment will reduce your Connecticut taxable income specifically for this senior exclusion. Ensure both you and your spouse’s ages qualify and it is only a one-time exclusion per taxpayer.

[ML2026]

Thank you for the quick reply. I don't see a place in the CT state income section where I can enter this exclusion for the home sale gain exclusion. Can I use the manual subtraction function to remove the gain from our CT state tax form?

[MindyB]

Yes, you can use the manual subtraction function, labeled "Other Subtractions" on the screen Here's the income that Connecticut handles differently. You must provide a brief description, such as "Exclusion of gain from sale of residence by person 65 or older" and only include the gain in excess of $500,000.

[ML2026]

Perfect, thank you!