Posted on January 17, 2019 by admin
HARTFORD – Seniors will gain relief from having to fill out paperwork on their pensions under a House Republican proposal to get rid of a 2017 law that requires pension administrators to withhold taxes throughout the year, Leader Themis Klarides said today.
Many low-income seniors have previously not had to file tax returns because they fell below the minimum level to do so. Now, even if they do not want to withhold taxes throughout the year they still have to file paperwork and this has created confusion.
“We have heard from a lot of our seniors that are not used to filing any taxes or paperwork to receive their pensions because they don’t receive a lot of money. They feel burdened by the paperwork, either to withhold taxes throughout the year, or to receive a refund at the end,” Klarides said. The proposed legislation would simply revert to the previous system that allowed pensioners to decide whether to withhold taxes.
Klarides said it makes sense to give the seniors who are already struggling day-to-day with their household finances the option, rather than requiring pension administrators to make the withholdings.