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:
• $75,000 for single filers and married taxpayers filing separately;
• or $100,000 joint filers and heads of household
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:
• $75,000 for single filers, married taxpayers filing separately, and heads of households;
• or $100,000 for married taxpayers filing jointly
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.
