Important 2019 Tax Information for Seniors

Dear friends and neighbors,

With tax season quickly approaching, I wanted to make sure you were aware of some pertinent tax relief benefits available to Connecticut seniors.

Last session, I joined my colleagues in the legislature in passing a budget that provided tax relief for seniors. Namely, we passed two provisions, one of which eliminated the income tax on Social Security and the other phases out the income tax on pensions.

Social Security Income Tax Deduction

Effective for tax years beginning after 2019, individual taxpayers may deduct 100 percent of Social Security income, if federal adjusted gross income (AGI) is less than:

• $75,000 for single filers and married taxpayers filing separately; or
• $100,000 joint filers and heads of household

Furthermore, taxpayers with incomes equal to or greater than the thresholds qualify for a 75 percent deduction. The income thresholds are increased from $50,000 and $60,000, respectively.

Retirement Income Tax Deductions

Effective beginning with the 2019 tax year, individual taxpayers may deduct a portion of retirement income that is included in federal gross income, if federal AGI is below:

• $75,000 for single filers, married taxpayers filing separately, and heads of households; or
• $100,000 for married taxpayers filing jointly

The deduction is equal to:

• 14% of pension or annuity income for the 2019 taxable year
• 28% of that income for the 2020 taxable year
• 42% of that income for the 2021 taxable year
• 56% of that income for the 2022 taxable year
• 70% of that income for the 2023 taxable year
• 84% of that income for the 2024 taxable year
• 100% of that income for the 2025 taxable year

Under current law, military and railroad retirement that is included in federal gross income is fully deductible.

As always, please contact me with questions at (800) 842-1423 or Fred.Camillo@housegop.ct.gov.

Regards,

Fred