With the 2017 year coming to a close, something very interesting has become part of the new budget for the State of CT. The State Government has passed a budget, enacted in Senate Bill 1502, that will increase the thresholds at which taxpayers qualify for a 100% income tax exemption for Social Security benefits. These thresholds are $50,000 for an unmarried individual, or for a married individual filing separately and $60,000 for married individuals filing jointly or a head of household. The budget also will be phasing out the income tax on pensions, IRA’s, and annuity income between 2019 and 2025 for taxpayers with an adjusted gross income below $75,000 for single filers and married individuals filing separately and $100,000 for married taxpayers filing jointly and heads of households.
As always please consult a tax professional about how these changes may impact you in the future.
Happy New Year!