Posted on January 31, 2020 by admin
With tax season upon us, I want to share some helpful information.
As part of the 2017 bipartisan budget, the legislature passed a long-time Republican proposal and raised the income thresholds that allow some taxpayers to be able to deduct 100 percent of their federally taxable Social Security income, therefore expanding this deduction to more taxpayers.
Effective in 2019, the threshold increases from $50,000 to $75,000 for single filers and married people filing separately, and $60,000 to $100,000 for joint filers and heads of household. As under existing law, taxpayers with incomes at or above these thresholds continue to qualify for a 75 percent deduction.
This legislation also assures a 100-percent exemption from income taxes on Social Security benefits for single filers with adjusted gross incomes of up to $75,000; and up to $100,000 for couples.
In authorizing the pension and annuity income tax exemption, the legislature also made a conforming change to the existing teacher pension exemption by allowing taxpayers to claim either that exemption or the pension and annuity exemption.
I am proud to have been a part of ensuring some income tax relief for Social Security recipients, and those with pensions and annuity income.
For more information:
The Department of Revenue Services has forms online at: https://portal.ct.gov/-/media/DRS/Forms/2019/Income/CT-1040-Online-Booklet_1219.pdf?la=en (see page 4, 26, and 28).
The Department of Revenue Services offers Free Income Tax Assistance here: https://portal.ct.gov/DRS/Individuals/VITA-TCE/Free-Income-Tax-Assistance
More tax resources are also available at: https://portal.ct.gov/TSC