2. Connecticut: Expanding Income Thresholds for Seniors
Connecticut lawmakers have expanded exemptions on qualifying pension and annuity distributions. Under recent statutory updates, qualifying joint filers earning under $100,000 deduct 100% of their pension income.
Single filers with adjusted gross income under $75,000 also qualify for this complete state tax exemption. Lawmakers continue debating whether to lift these income caps entirely to help more middle-class households.
If your earnings sit near these limits, careful financial planning is essential. A small spike in income could trigger unexpected state taxation on your entire pension.
Leave a Reply