Income Tax Credit for Property Taxes Paid (Circuit Breaker)

State

Connecticut

Year

2022

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 tax filing 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, $35,250 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 or spouse must be at least 65 years old or have claimed a dependent on their federal income tax. The amount of the credit for tax year 2021, up to a maximum of $200, is determined by income and tax filing status. The income limit is $109,500 for a single filer, $65,250 for those married filing separately, $114,500 for head of household, and $130,500 for married couples 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_RR22

Footnotes

This property tax credit is only allowed 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" refers to income from all sources, including but not limited to wages, pensions, and disability benefits. Social security benefit adjustments, military retirement benefits, and sale of local and state bonds, among others, are not considered income.

Sources

Conn. Gen. Stat. § 12-704c (in effect for 2022)
Connecticut Department of Revenue, Individual Income Tax Return, Form CT-1040 (Tax year 2021 for benefits in 2022)
[https://portal.ct.gov/-/media/DRS/Forms/2021/Income/CT-1040_1221.pdf Accessed 12/11/2023]
View Archived Source

Connecticut Department of Revenue, Form CT-1040 Instructions, pp. 30-31 (Tax year 2021 for benefits in 2022)
[https://portal.ct.gov/-/media/DRS/Forms/2021/Income/CT-1040-Online-Booklet_1221.pdf Accessed 12/11/2023]
View Archived Source

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