Posted on February 15, 2019 by admin
HARTFORD – State Reps. Themis Klarides and Nicole Klarides-Ditria expressed their support in Finance, Revenue and Bonding on Wednesday for a House Republican proposal that will eliminate the requirement that income tax be deducted and withheld from pension payments unless the payee has submitted a CT-W4P withholding certificate.
Reps. Klarides and Klarides-Ditria said they are committed to getting this legislation passed on behalf of their constituents within their districts and across the state of Connecticut. Each of the Representatives have received feedback from countless seniors citizens who are confused, frustrated, and concerned by notices of higher tax rates and the need to file returns.
Rep. Klarides, who testified before the committee, explained, “Many seniors are living off less month to month as a result of the tax being taken out immediately. Individuals who rely on pension and annuity payments cannot afford a decrease in their monthly income, and cannot wait until April to get their money back. Lastly, many individuals prior to this change did not need to file an income tax form. As a result, this has led to further inconvenience to our most at-need constituencies, who may not be able to afford a tax professional or have access to the services they need as a result of this policy change.”
Rep. Klarides-Ditria added, “In 2017 we passed legislation that we thought would help the state of Connecticut by cutting down on unexpected tax liabilities, but we learned that this bill had many unintended consequences and we are now working to make a correction to this law. I think it’s important that we fix P.A. 147 and not force taxpayers to file a W4P withholding certificate.”
Prior to a 2017 law, P.A 147, taxpayers were allowed 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.
To follow House Bill 5699 and to read written testimony visit cga.ct.gov.