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CT HB07272
Bill
Status
4/9/2025
Primary Sponsor
Finance, Revenue and Bonding Committee
Click for details
AI Summary
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Connecticut personal income tax brackets and adjusted gross income thresholds will be indexed annually for inflation starting January 1, 2026, using the chained consumer price index calculated on an August-over-August basis
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Personal exemption amounts ($12,000-$24,000 depending on filing status) and their phase-out thresholds will also be adjusted annually for inflation beginning with tax year 2026
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A new refundable child tax credit of $150 per child under age 17 is established for taxable years starting January 1, 2025, limited to a maximum of three children per taxpayer
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The child tax credit phases out at 10% for every $1,000 of income above $100,000 (single/married filing separately), $160,000 (head of household), or $200,000 (married filing jointly)
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Withholding rules for lump sum distributions from retirement accounts are modified to require withholding at the highest marginal rate unless the payee elects otherwise, with "lump sum distribution" redefined as the entire account balance or more than $5,000, whichever is less
Legislative Description
An Act Concerning The Indexing Of Personal Income Tax Thresholds And Personal Exemption Amounts, The Establishment Of A Child Tax Credit And The Deduction And Withholding Of Personal Income Tax From Certain Payments And Distributions.
Last Action
Public Hearing 04/14
4/10/2025