Due Date – April 18, 2022
The 2021 Connecticut income tax return (and payment) will be considered timely
if filed on or before Monday, April 18, 2022.
Property Tax Credit
The maximum amount of property tax credit that a taxpayer may claim and the eligibility requirements, both of which currently apply to taxable year 2020, have been extended to taxable years 2021 and 2022. Specifically, the maximum amount of property tax credit is $200. Additionally, to qualify for the property tax credit, a taxpayer, or the taxpayer’s spouse if married filing jointly, must be 65 years of age or older by the end of the taxable year, or the taxpayer must have claimed at least one dependent on your federal income tax return.
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.
Earned Income Tax Credit Increase
For taxable years beginning on or after January 1, 2021, the earned income tax credit for Connecticut residents has been increased to 30.5% of the federal earned income credit.
Subtraction Modification for Certain IRA Distributions
Beginning with taxable year 2023, a subtraction modification for distributions from individual retirement accounts (IRAs), other than Roth IRAs, will be phased in over a four year period. The subtraction modification may be claimed by taxpayers whose federal adjusted gross income is less than $75,000 (for single, married filing separately, and head of household) or $100,000 (for married filing jointly).
The subtraction modification will be allowed to the extent the IRA distributions are included in federal adjusted gross income and will be phased in as follows:
||Subtraction Equal to:
|2023||25% of IRA distribution|
|2024||50% of IRA distribution|
|2025||75% of IRA distribution|
|2026 and after||100% of IRA distribution|
Connecticut Teachers’ Retirement System Income
Under prior law, retired teachers were only allowed to claim the teachers’ pension subtraction on the income they received from the Connecticut Teachers’ Retirement System.
For taxable years beginning on or after January 1, 2021, retired teachers are now allowed to claim either the teachers’ pension subtraction or the pension and annuity subtraction (if their adjusted gross income is below the applicable threshold) on the income they receive from the Connecticut Teachers’ Retirement System.