CT HB05242

Exempts Social Security benefits from Connecticut state income tax for eligible taxpayers, effective for taxable years beginning January 1, 2019.

Creates income-based eligibility thresholds: unmarried individuals and married filing separately with federal adjusted gross income below $80,000; married filing jointly and head of household filers with income below $105,000 receive full exemption.

Provides partial exemption for higher-income taxpayers (at or above the thresholds) equal to the difference between includable Social Security benefits and the lesser of 25% of benefits received or 25% of the excess described in Internal Revenue Code Section 86(b)(1).

Amends Connecticut General Statutes Section 12-701(a)(20)(B) to add Social Security benefits to the list of income subtractions allowed in calculating Connecticut adjusted gross income.

Changes effective date from January 1, 2018 to January 1, 2019 for accuracy.