Mae Flexer

State Property Tax Credit Expansion:

The 2022 budget increased the state property tax credit from $200 to $300 and expanded the number of taxpayers who may claim it. The credit will no longer be limited to individuals over age 65 or those who claim dependents on their federal tax return. This limitation was set to expire in tax year 2023, the newly enacted budget removes the limitation one year early. This will benefit a total of 795,000 filers: 410,000 filers that already received the tax credit will receive the credit increase, and 385,000 additional filers will receive the increased tax credit amount due to the accelerated elimination of filer eligibility criteria.

Income Limits to Qualify:

$109.5k for single

$130.5k for married filing jointly

$65.25k for married filing separately

$114.5k for head of household.

Phased-out of taxes on certain pension, 401K and annuity income:

The 2022 budget accelerates the phase-in of the general pension and annuity exemption, permitting income-eligible taxpayers to deduct 100% of their qualifying pension and annuity income from their Connecticut taxable income beginning in the 2022 tax year. This would not have been achieved until the exemption was completely phased-in by 2025 had it not been for this year’s budget.

To qualify, if you are a single filer, married people filing separately, or head of household, your adjusted gross income must be below $75,000. If you are married, filing jointly, your adjusted gross income must be below $100,000.

Source: (CGS § 12-701(a)(20)(B)(xxi)), as amended by HB 5506 (2022), § 414).