|One of the few victories this past legislative session was to block attempts to rescind Connecticut’s phase-out of the state income tax on pensions for seniors that was included in the historic bipartisan budget that passed in 2017.
The governor had attempted to stop the scheduled phase-out of the tax in his budget but was stopped by the General Assembly.
I, along with my colleagues, have long advocated for the repeal of the state tax on pension, annuity income and Social Security benefits as a small way to provide retired Connecticut residents some relief and allow them to stay in our great state.
For many years, Connecticut was one of the few states that taxed your pension and Social Security; we wanted to end that financial penalty. Especially considering that our state has one of the oldest populations, many of whom live on fixed incomes.
On pension and annuity income for people with adjusted gross income (AGI) levels of up to $75,000 for singles and $100,000 for couples, there will be a 14-percent exemption for this 2019 tax year, an overall savings of nearly $33 million. This will rise to 28 percent in 2020, then 42 percent in 2021, 56 percent 2022, 70 percent in 2023, 84 percent in 2024 and the full 100-percent exemption in 2025.
The General Assembly will also move forward with past legislation giving tax relief to those who receive Social Security benefits:
There will be 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. These individuals will save an additional $24 million when they file their 2019 taxes.
Up until this year, the threshold for exempting Social Security income for singles was adjusted gross incomes of $50,000 for singles; and $60,000 for joint filers.
I will continue to advocate for a more affordable state to live, raise a family, work and retire.
Also I want to share the 2019 Major Public Acts that were passed into law during the legislative session,- to view them click here.
If you have additional questions or concerns, please contact my office at (800) 842-1423, or email me at Brenda.Kupchick@cga.ct.gov. You can also follow my legislative activity on my website at www.repkupchick.com.