Posted on January 15, 2019 by admin
Last session, I joined my legislative colleagues to pass two provisions (included within the bi-annual budget) regarding Social Security Income Deductions and Retirement Income Deductions designed to provide seniors with much-needed tax relief. The first eliminated the income tax on Social Security and the second will phase out the income tax on pensions over the next few years.
**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:
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:
To read more about these changes, you can read the Research Report provided by the non-partisan Office of Legislative Research – https://www.cga.ct.gov/2018/rpt/pdf/2018-R-0005.pdf
It is recommended that you consult a certified tax preparer regarding any deduction.