Update/Retirees pension deductions/PPP Reopens

January 13, 2021

I want to share two important updates with you that I thought you would find helpful. One is about Retirees in Connecticut who are now able to claim a larger deduction on pension and annuity income.

And the second one is an update on the Paycheck Protection Program (PPP) for small businesses and nonprofits impacted by the pandemic which re-opened Monday. Please see below for more details.
Retirees in Connecticut are now able to claim a larger deduction on pension and annuity income.

Thanks to a six-year plan that began with the 2019 tax year, seniors are seeing an increase in the percentage of pension and annuity income they can deduct from their annual tax returns.

The deduction for 2019 was 14% and increases to 28% for 2020. By 2025, seniors will be able to deduct 100% of their pension and annuity income!

The deduction applies to pension and annuity income for individuals earning less than $75,000 annually or married couples earning under $100,000 per year. 

The state tax on social security has been fully phased out for retirees making $75,000 or less and couples making $100,000 or less per year.
 
I am proud to help our seniors on fixed incomes reduce their tax burden in appreciation for their years of service to the community.

 
The Paycheck Protection Program (PPP) re-opened Monday for small businesses and nonprofits impacted by the pandemic.
 
The new federal funding allocation includes $284 billion in forgivable loans for new borrowers and certain existing PPP borrowers.

Businesses working with community financial institutions (CFI) can now apply for First Draw PPP Loans and for Second Draw PPP Loans on Wednesday, January 13. According to the Connecticut Small Business Administration (SBA), the following CFI are participating in the program as of today:

New Haven Bank
Location: 299 Whaley Ave, New Haven
Contact: Bill Hice
Phone: (203) 787-9513
Email: Whice@newhavenbank.com  

Nutmeg State Financial Credit Union
Numerous locations throughout Connecticut
Phone: (860) 513-5000
Email: BusinessLending@NutmegStateFCU.org  

For additional information on terms, eligibility and applications, check the U.S. SBA PPP website or contact local partners, including:

The PPP has been a lifeline for thousands of Connecticut businesses. I will continue to update you as we get more information.