Money for CT Working Families—Increased Earned Income Tax Credit
This session I worked alongside my colleagues to pass a bipartisan budget which did not raise taxes, and focused on putting more money in the pockets of hard-working Connecticut families through increased tax credits.
Under the newly enacted budget, the Earned Income Tax Credit increased from 23% to 30.5%.
The Connecticut Earned Income Tax Credit is a refundable state income tax credit for working individuals and families. Qualifying Connecticut workers can now deduct 30.5% of their earned income from their annual state taxes. To qualify, individuals must have an adjusted gross income that is less than:
- $51,464 ($57,414 married filing jointly) with 3 or more qualifying children;
- $47,915 ($53,865 married filing jointly) with 2 qualifying children;
- $42,158 ($48,108 married filing jointly) with 1 qualifying child; or
- $15,980 ($21,920 married filing jointly) with no qualifying children.
This increase will result in an additional $40 million delivered to the nearly 195,000 eligible households to assist with necessary expenses such as groceries, transportation, housing and more.
I am proud that our state budget supports the working families and residents across the state who were impacted most by the pandemic.