Posted on January 24, 2019 by admin
Rep. Klarides-Ditria: Help Seniors by Eliminating Tax and Annuity filing form CT-W4P
HARTFORD – State Rep. Nicole Klarides-Ditria said on Wednesday she is working on legislation to eliminate the requirement that income tax be deducted and withheld from pension payments unless the payee has submitted a CT-W4P withholding certificate to the payer.
Prior law allowed taxpayers to instruct their plan administrators to withhold the appropriate amount of tax but did not require they do so. Taxpayers could choose to pay the full liability at the time they filed state income taxes.
Rep. Klarides-Ditria explained that current law forces everyone, no matter their income level, to file form CT-W4P indicating their pension and annuity withholding choices with their plan administrator otherwise the top level of 6.99% will be withheld.
“This law has become a headache for many residents throughout Connecticut,” said Rep. Klarides-Ditria. “When you pass legislation it sometimes has unintended consequences. I think many lawmakers, after talking to their constituents, have realized that this law has caused to many issues and we should go back to the old way of filing.”
House Bill 5699 now awaits action in the Finance, Revenue and Bonding Committee.