We report a comparative computational study of 2 series of molecules with C–N bonding squaraines (NSQ) and C–C bonding squaraines (CSQ), having absorption from visible to near infrared region (350‐800 nm). The NSQ are considered as molecules with break‐in conjugation, and CSQ are considered as molecules with complete conjugation in molecular backbone. The lowest electronic excitations in CSQ molecules are always having around 200 nm red shifted absorption than its corresponding NSQ molecules. The reason for this drastic red shift in CSQ series than NSQ has been systematically studied by density functional theory, time‐dependent density functional theory, and symmetry adopted cluster configuration interaction methods. The CSQ series are showing less charge transfer than NSQ, but having small diradical character. This study may be helpful in design and synthesis of new squaraine dyes, which are useful in materials applications.