The State of Connecticut has made the following tax law changes for tax year 2020:
- Increase to Subtraction Modification of Pension and Annuity Income- For the taxable year beginning on January 1, 2020, the subtraction modification of pension and annuity income is
increased from 14% to 28% of any pension or annuity income received for the taxable year. See line 48b instructions for more information.
- Estimated Payment Deadline Extensions for Tax Year 2020-To provide relief to Connecticut taxpayers during the COVID-19 pandemic, the Connecticut Department of Revenue Services (DRS) extended the deadlines for the first and second quarter 2020 income tax estimated payments to
July 15, 2020. Form CT-2210, Underpayment of Estimated Tax by Individuals, Trusts, and Estates, has been updated for the 2020 tax year to account for these deadline extensions. Ensure you are using the 2020 form to properly calculate the amount of interest due.
- Change to Connecticut Earned Income Tax Credit Reporting for Certain Taxpayers- Recent federal legislation provides that taxpayers may elect to use 2019 earned income to calculate their 2020 federal earned income credit. If you have made the federal election to use 2019 earned income, see instructions for Schedule CT-EITC, Connecticut Earned Income Tax Credit, Lines 6 and 7, for important changes to your Connecticut reporting requirements.
You can read more about the changes to Connecticut Tax Law here.