Earned Income Tax Credit Gets IncreaseAugust 19, 2021
This session my colleagues and I passed a bipartisan budget which does not raise taxes and focuses on putting more money into the pockets of hard-working Connecticut families with increased tax credits.
Under the newly enacted budget, the Earned Income Tax Credit increases from 23% to 30.5%.
The Connecticut Earned Income Tax Credit (EITC) is a refundable state income tax credit for working individuals and families. Those who qualify 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 put an additional $40 million into the pockets of the nearly 195,000 eligible households. The extra money can used to meet necessary expenses such as groceries, transportation, housing and more.
I am proud that our state budget supports the working families and residents who were impacted most by the pandemic.