Low-to-moderate income families in Connecticut are eligible for a significant boost in tax credits when they file their personal income tax returns. Gov. Ned Lamont sought to remind those residents about the newly enacted rate change in the Connecticut Earned Income Tax Credit. The rate increased from the most recent rate of 30.5 percent for the 2022 income year to the new rate of 40 percent for the 2023 income year.
The rate change was enacted as a result of the state budget bill that the legislature approved and Lamont signed into law last year. It also includes several other significant tax relief measures. Lamont’s office said that means that lower-income filers will receive several hundred dollars in additional tax credits this year above what they received the prior year, depending on their income and number of dependents.
The state budget bill that Lamont signed last year included the cuts to the state’s income tax rates, which were targeted at providing relief to middle-income households earning less than $150,000 for single filers and $300,000 for joint filers. It was the first time that income tax rates were cut in Connecticut since the mid-1990s. It was also the single largest income tax cut enacted in state history.
The income tax cut was estimated to benefit more than 1 million tax filers.
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