Bill > HB05975

This bill proposes to amend Connecticut's tax statutes to create a new personal income tax deduction specifically for tips or gratuities that a taxpayer has declared on their tax return for a given year. By allowing taxpayers to deduct the amount of tips they have reported to tax authorities, the bill aims to provide financial relief for workers in service industries who rely significantly on tip income, such as restaurant servers, bartenders, taxi drivers, and other service professionals. The deduction would effectively reduce the taxable income for individuals who earn tips, potentially lowering their overall tax liability. While the bill text does not specify the exact percentage or dollar amount of the deduction, it represents a legislative effort to acknowledge and provide some tax benefit to workers in tip-based occupations. The proposed change would be implemented by modifying section 12-701 of the Connecticut General Statutes, which governs personal income tax regulations.

Budget and Finance

https://www.cga.ct.gov/asp/cgabillstatus/cgabillstatus.asp?selBillType=Bill&bill_num=HB05975&which_year=2025