CT HB05795

Allows Connecticut taxpayers to deduct student loan interest payments from their state personal income tax, effective for taxable years beginning January 1, 2015.

Maximum annual deduction is $2,500 per taxpayer for interest paid on qualified student loans.

Defines qualified student loans as loans taken to pay education expenses for the taxpayer, spouse, or dependent at eligible institutions of higher education, including graduate school.

Limits eligibility to taxpayers with modified adjusted gross income below $80,000 (or $160,000 for joint filers), filing status other than married filing separately, and not claimed as a dependent by another person.

Qualified education expenses include tuition, fees, room and board, books, supplies, equipment, and transportation costs.