CT HB06174

Exempts Social Security benefits from Connecticut state income tax for taxable years beginning January 1, 2019, with income thresholds that vary by filing status (unmarried individuals under $100,000, married filing jointly under $125,000, head of household under $125,000).

For higher-income taxpayers exceeding these thresholds, allows a deduction equal to the difference between total Social Security benefits and the lesser of 25% of benefits received or 25% of the excess as defined in Internal Revenue Code Section 86(b)(1).

Effective date for tax exemption provision is January 1, 2019, applicable to taxable years commencing on or after that date.

Requires the Commissioner of Revenue Services to study changes in out-of-state migration of taxpayers age 62 and older and file a report by July 1, 2020, including projected revenue impacts through fiscal year 2025.

Modifies Connecticut General Statutes section 12-701(a)(20)(B) to add the Social Security exemption to existing income tax deductions and adjustments.