CT HB05123

Establishes a deduction under Connecticut personal income tax for interest paid on qualified student loans, effective January 1, 2017.

Allows a maximum annual deduction of $2,500 per taxpayer for student loan interest payments.

Defines "qualified student loan" as a loan taken out solely to pay qualified education expenses for the taxpayer, spouse, or dependent at an eligible institution of higher education.

Limits the deduction to taxpayers with modified adjusted gross income under $80,000 (or $160,000 for joint filers) and filing status other than married filing separately.

Requires that no other person claims an exemption for the taxpayer and that the taxpayer is legally obligated to pay interest on the qualified student loan.