Income Tax Credit for Property Taxes Paid (Circuit Breaker)

State

Connecticut

Year

2018

Variations in Receipt of Benefit

Benefit Varies with Income

Benefit Type

Circuit Breaker

Benefit

Taxpayers receive a non-refundable income tax credit for all or a portion of their property taxes for their primary residence or motor vehicles. The amount of the credit is determined by income and marital status, with a maximum credit of $200. The credit is reduced by 15% for every $10,000 or a fraction thereof in adjusted gross income above $49,500 for unmarried individuals; $35,200 for married filing separately; $54,500 for heads of household; and $70,500 for married households.

How is Benefit Disbursed

Credit to the income tax bill

Eligible Property Type

Residential

Other

Characteristics of Eligible Property

This credit applies to property taxes paid on a primary residence or motor vehicle.

Eligibility Criteria

Age

Homeowner

Income Ceiling

Principal Residence

Other Criteria

Description of Eligibility Criteria

To qualify, taxpayers must have paid property taxes on their primary residence or motor vehicle. In addition, , the claimant must be at least 65 years old or have claimed a dependent on their federal income tax. The amount of the credit for tax years 2017 and 2018, up to a maximum of $200, is determined by income and marital status. The maximum income is $109,500 for a single filer; $65,250 for a married filing separately; $114,500 for head of household and $130,500 for filing jointly.

Local Option in Adoption of Program

Local government is unable to exercise an option

Local Option Regarding Program Features

No local option regarding program features

State Funding for Local Tax Loss

State reimburses all of the local government tax loss

Description of State Funding for Tax Loss

The state issues a credit directly to the taxpayer.

Record ID

CT107_RR18

Footnotes

For the tax years 2017 and 2018, this property tax credit shall be allowed only for a Connecticut resident who is 65 years of age or older before the close of the applicable taxable year, or who claims one or more dependents for the federal income tax for the applicable taxable year. "Income" is income from all sources including but not limited to wages, pensions and disability benefits. Social security benefit adjustments, military retirement benefits, sale of local and state bonds among others are not counted as income.

Sources

Conn. Gen. Stat. § 12-704c (in effect for 2018)
Connecticut Department of Revenue form CT-1040: Individual Income Tax Return Tax year 2018 for benefits in 2019 [https://portal.ct.gov/-/media/DRS/Forms/1-2018/Income/CT-1040-Form-W_1218.pdf?la=en accessed 02/05/2019] View Archived Source
View Archived Source

Connecticut Department of Revenue form CT-1040: Individual Income Tax Return Tax year 2017 for benefits in 2018 [https://www.ct.gov/drs/lib/drs/forms/1-2017/income/ct-1040_form_w_1217.pdf accessed 10/19/2018]
View Archived Source

Connecticut Department of Revenue 2017 Resident Income Tax Return Instructions pp 31-33 [https://www.ct.gov/drs/lib/drs/forms/1-2017/income/booklets /ct-1040_online_instruction_booklet_1217.pdf Accessed 10/19/2018]
View Archived Source

Connecticut Department of Revenue Services Informational Publication Q&A: Income Tax Credit for Property Taxes Paid to a Connecticut Political Subdivision IP 2017 (23) [https://www.ct.gov/drs/lib/drs/publications/pubsip/2017/ip2017-23.pdf Accessed 10/19/2018] View Archived Source

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