TRB: Income Tax Exemption for Teacher Pensions

Income Tax Exemption for Teacher Pensions

 

Public Act 14-47 (§ 50) exempts a portion of state teachers’ retirement system (TRS) income from the income tax.  It does so by allowing taxpayers, when calculating Connecticut adjusted gross income for state income tax purposes, to deduct, to the extent properly includable in gross income for federal income tax purposes, for the taxable year commencing January 1, 2015, ten per cent of the income received from the state teachers' retirement system, for the taxable year commencing January 1, 2016, twenty-five per cent of the income received from the state teachers' retirement system.

 

The budget that just passed maintains the exemption for the taxable years commencing January 1, 2017 and January 1, 2018,  at 25%. The exemption would increase to 50% beginning in the taxable year commencing January 1, 2019 and each taxable year thereafter.

 

If you have questions on your Connecticut tax obligation, please contact the Department of Revenue Services at 1-800-382-9463 (in CT) or 1-860-297-5962 (from anywhere) or visit their website @ www.ct.gov/drs.



Content Last Modified on 11/15/2017 12:42:31 PM