The State of Connecticut has made the following tax law changes for tax year 2022:
- Property Tax Credit- The Connecticut Property Tax Credit for tax year 2020 has been extended to tax years 2021 and 2022. The maximum Property Tax Credit from $200 to $300 and to qualify, the primary taxpayer or spouse must be 65 years or older by the end of the tax year, or have claimed at least one dependent on their federal return.
- Earned Income Tax Credit Increase- The earned income tax credit for Connecticut residents has been increased to 3025% of the federal earned income credit.
- Subtraction Modification for Certain IRA Distributions- New legislation has accelerated the "phase -in" implementation of the modification for pension and annuity income. All taxable years commencing on or after January 1, 2022 "eligible persons are authorized to subtract from their adjusted gross income 100% of pension and annuity income when calculating their Connecticut income tax liability. Without this amendment, this subtraction modification would not have been fully available until the taxable year commencing on or after January 1, 2025."
- Subtraction modification for enhanced earned income tax payments (EITC) - The new legislation allows for anyone who received an enhanced EITC payment under the 2020 EITC enhancement program AND any person who received an enhanced EITC payment under the 2021 EITC enhanced program may subtract such payments from their federal adjusted gross income when calculating their Connecticut income tax liability.
- Credit for the birth of a stillborn child - Eligible taxpayers may now claim a credit of $2,500 against their income tax for Connecticut tax liability. This credit is affective for taxable years beginning on or after January 1, 2022
You can read more about the changes to Connecticut Tax Law here.