Bill > HB05154

This bill proposes to modify personal income tax deductions related to Social Security benefits, pension and annuity income, and distributions from certain individual retirement accounts (IRAs). Currently, the tax deductions for these income sources will be replaced with a new structure that provides more generous deduction limits based on filing status. For unmarried individuals or those filing separately, the new deduction will allow up to $100,000 of such benefits, income, and distributions to be deducted from taxable income. For married couples filing jointly or individuals filing as head of household, the deduction limit will be increased to $200,000. A key goal of this legislation is to eliminate the marriage penalty, which traditionally meant that married couples might face less favorable tax treatment compared to individuals filing separately. By establishing higher deduction limits for married couples and heads of household, the bill aims to create a more equitable tax treatment across different filing statuses, potentially providing significant tax relief for retirees and those receiving various types of retirement income.

Budget and Finance

https://www.cga.ct.gov/asp/cgabillstatus/cgabillstatus.asp?selBillType=Bill&bill_num=HB05154&which_year=2025