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General Assembly Raised Bill No. 7071
January Session, 2019
LCO No. 3666
Referred to Committee on AGING
Introduced by:
(AGE)
AN ACT PROVIDING AN INCOME TAX DEDUCTION FOR
INDIVIDUALS CARING FOR ELDERLY PERSONS, CHILDREN OR
DISABLED PERSONS.
Be it enacted by the Senate and House of Representatives in General
Assembly convened:
Section 1. Subparagraph (B) of subdivision (20) of subsection (a) of 1
section 12-701 of the general statutes is repealed and the following is 2
substituted in lieu thereof (Effective from passage and applicable to taxable 3
years commencing on or after January 1, 2019): 4
(B) There shall be subtracted therefrom: 5
(i) To the extent properly includable in gross income for federal 6
income tax purposes, any income with respect to which taxation by 7
any state is prohibited by federal law; 8
(ii) To the extent allowable under section 12-718, exempt dividends 9
paid by a regulated investment company; 10
(iii) To the extent properly includable in gross income for federal 11
income tax purposes, the amount of any refund or credit for 12
overpayment of income taxes imposed by this state, or any other state 13 Raised Bill No. 7071
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of the United States or a political subdivision thereof, or the District of 14
Columbia; 15
(iv) To the extent properly includable in gross income for federal 16
income tax purposes and not otherwise subtracted from federal 17
adjusted gross income pursuant to clause (x) of this subparagraph in 18
computing Connecticut adjusted gross income, any tier 1 railroad 19
retirement benefits; 20
(v) To the extent any additional allowance for depreciation under 21
Section 168(k) of the Internal Revenue Code for property placed in 22
service after September 27, 2017, was added to federal adjusted gross 23
income pursuant to subparagraph (A)(ix) of this subdivision in 24
computing Connecticut adjusted gross income, twenty-five per cent of 25
such additional allowance for depreciation in each of the four 26
succeeding taxable years; 27
(vi) To the extent properly includable in gross income for federal 28
income tax purposes, any interest income from obligations issued by or 29
on behalf of the state of Connecticut, any political subdivision thereof, 30
or public instrumentality, state or local authority, district or similar 31
public entity created under the laws of the state of Connecticut; 32
(vii) To the extent properly includable in determining the net gain 33
or loss from the sale or other disposition of capital assets for federal 34
income tax purposes, any gain from the sale or exchange of obligations 35
issued by or on behalf of the state of Connecticut, any political 36
subdivision thereof, or public instrumentality, state or local authority, 37
district or similar public entity created under the laws of the state of 38
Connecticut, in the income year such gain was recognized; 39
(viii) Any interest on indebtedness incurred or continued to 40
purchase or carry obligations or securities the interest on which is 41
subject to tax under this chapter but exempt from federal income tax, 42
to the extent that such interest on indebtedness is not deductible in 43
determining federal adjusted gross income and is attributable to a 44 Raised Bill No. 7071
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trade or business carried on by such individual; 45
(ix) Ordinary and necessary expenses paid or incurred during the 46
taxable year for the production or collection of income which is subject 47
to taxation under this chapter but exempt from federal income tax, or 48
the management, conservation or maintenance of property held for the 49
production of such income, and the amortizable bond premium for the 50
taxable year on any bond the interest on which is subject to tax under 51
this chapter but exempt from federal income tax, to the extent that 52
such expenses and premiums are not deductible in determining federal 53
adjusted gross income and are attributable to a trade or business 54
carried on by such individual; 55
(x) (I) For taxable years commencing prior to January 1, 2019, for a 56
person who files a return under the federal income tax as an 57
unmarried individual whose federal adjusted gross income for such 58
taxable year is less than fifty thousand dollars, or as a married 59
individual filing separately whose federal adjusted gross income for 60
such taxable year is less than fifty thousand dollars, or for a husband 61
and wife who file a return under the federal income tax as married 62
individuals filing jointly whose federal adjusted gross income for such 63
taxable year is less than sixty thousand dollars or a person who files a 64
return under the federal income tax as a head of household whose 65
federal adjusted gross income for such taxable year is less than sixty 66
thousand dollars, an amount equal to the Social Security benefits 67
includable for federal income tax purposes; 68
(II) For taxable years commencing prior to January 1, 2019, for a 69
person who files a return under the federal income tax as an 70
unmarried individual whose federal adjusted gross income for such 71
taxable year is fifty thousand dollars or more, or as a married 72
individual filing separately whose federal adjusted gross income for 73
such taxable year is fifty thousand dollars or more, or for a husband 74
and wife who file a return under the federal income tax as married 75
individuals filing jointly whose federal adjusted gross income from 76
such taxable year is sixty thousand dollars or more or for a person who 77 Raised Bill No. 7071
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files a return under the federal income tax as a head of household 78
whose federal adjusted gross income for such taxable year is sixty 79
thousand dollars or more, an amount equal to the difference between 80
the amount of Social Security benefits includable for federal income tax 81
purposes and the lesser of twenty-five per cent of the Social Security 82
benefits received during the taxable year, or twenty-five per cent of the 83
excess described in Section 86(b)(1) of the Internal Revenue Code; 84
(III) For the taxable year commencing January 1, 2019, and each 85
taxable year thereafter, for a person who files a return under the 86
federal income tax as an unmarried individual whose federal adjusted 87
gross income for such taxable year is less than seventy-five thousand 88
dollars, or as a married individual filing separately whose federal 89
adjusted gross income for such taxable year is less than seventy-five 90
thousand dollars, or for a husband and wife who file a return under 91
the federal income tax as married individuals filing jointly whose 92
federal adjusted gross income for such taxable year is less than one 93
hundred thousand dollars or a person who files a return under the 94
federal income tax as a head of household whose federal adjusted 95
gross income for such taxable year is less than one hundred thousand 96
dollars, an amount equal to the Social Security benefits includable for 97
federal income tax purposes; and 98
(IV) For the taxable year commencing January 1, 2019, and each 99
taxable year thereafter, for a person who files a return under the 100
federal income tax as an unmarried individual whose federal adjusted 101
gross income for such taxable year is seventy-five thousand dollars or 102
more, or as a married individual filing separately whose federal 103
adjusted gross income for such taxable year is seventy-five thousand 104
dollars or more, or for a husband and wife who file a return under the 105
federal income tax as married individuals filing jointly whose federal 106
adjusted gross income from such taxable year is one hundred 107
thousand dollars or more or for a person who files a return under the 108
federal income tax as a head of household whose federal adjusted 109
gross income for such taxable year is one hundred thousand dollars or 110 Raised Bill No. 7071
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more, an amount equal to the difference between the amount of Social 111
Security benefits includable for federal income tax purposes and the 112
lesser of twenty-five per cent of the Social Security benefits received 113
during the taxable year, or twenty-five per cent of the excess described 114
in Section 86(b)(1) of the Internal Revenue Code; 115
(xi) To the extent properly includable in gross income for federal 116
income tax purposes, any amount rebated to a taxpayer pursuant to 117
section 12-746; 118
(xii) To the extent properly includable in the gross income for 119
federal income tax purposes of a designated beneficiary, any 120
distribution to such beneficiary from any qualified state tuition 121
program, as defined in Section 529(b) of the Internal Revenue Code, 122
established and maintained by this state or any official, agency or 123
instrumentality of the state; 124
(xiii) To the extent allowable under section 12-701a, contributions to 125
accounts established pursuant to any qualified state tuition program, 126
as defined in Section 529(b) of the Internal Revenue Code, established 127
and maintained by this state or any official, agency or instrumentality 128
of the state; 129
(xiv) To the extent properly includable in gross income for federal 130
income tax purposes, the amount of any Holocaust victims' settlement 131
payment received in the taxable year by a Holocaust victim; 132
(xv) To the extent properly includable in gross income for federal 133
income tax purposes of an account holder, as defined in section 31-134
51ww, interest earned on funds deposited in the individual 135
development account, as defined in section 31-51ww, of such account 136
holder; 137
(xvi) To the extent properly includable in the gross income for 138
federal income tax purposes of a designated beneficiary, as defined in 139
section 3-123aa, interest, dividends or capital gains earned on 140
contributions to accounts established for the designated beneficiary 141 Raised Bill No. 7071
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pursuant to the Connecticut Homecare Option Program for the Elderly 142
established by sections 3-123aa to 3-123ff, inclusive; 143
(xvii) To the extent properly includable in gross income for federal 144
income tax purposes, any income received from the United States 145
government as retirement pay for a retired member of (I) the Armed 146
Forces of the United States, as defined in Section 101 of Title 10 of the 147
United States Code, or (II) the National Guard, as defined in Section 148
101 of Title 10 of the United States Code; 149
(xviii) To the extent properly includable in gross income for federal 150
income tax purposes for the taxable year, any income from the 151
discharge of indebtedness in connection with any reacquisition, after 152
December 31, 2008, and before January 1, 2011, of an applicable debt 153
instrument or instruments, as those terms are defined in Section 108 of 154
the Internal Revenue Code, as amended by Section 1231 of the 155
American Recovery and Reinvestment Act of 2009, to the extent any 156
such income was added to federal adjusted gross income pursuant to 157
subparagraph (A)(xi) of this subdivision in computing Connecticut 158
adjusted gross income for a preceding taxable year; 159
(xix) To the extent not deductible in determining federal adjusted 160
gross income, the amount of any contribution to a manufacturing 161
reinvestment account established pursuant to section 32-9zz in the 162
taxable year that such contribution is made; 163
(xx) To the extent properly includable in gross income for federal 164
income tax purposes, (I) for the taxable year commencing January 1, 165
2015, ten per cent of the income received from the state teachers' 166
retirement system, (II) for the taxable years commencing January 1, 167
2016, January 1, 2017, and January 1, 2018, twenty-five per cent of the 168
income received from the state teachers' retirement system, and (III) 169
for the taxable year commencing January 1, 2019, and each taxable year 170
thereafter, fifty per cent of the income received from the state teachers' 171
retirement system or the percentage, if applicable, pursuant to clause 172
(xxi) of this subparagraph; 173 Raised Bill No. 7071
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(xxi) To the extent properly includable in gross income for federal 174
income tax purposes, except for retirement benefits under clause (iv) of 175
this subparagraph and retirement pay under clause (xvii) of this 176
subparagraph, for a person who files a return under the federal income 177
tax as an unmarried individual whose federal adjusted gross income 178
for such taxable year is less than seventy-five thousand dollars, or as a 179
married individual filing separately whose federal adjusted gross 180
income for such taxable year is less than seventy-five thousand dollars, 181
or as a head of household whose federal adjusted gross income for 182
such taxable year is less than seventy-five thousand dollars, or for a 183
husband and wife who file a return under the federal income tax as 184
married individuals filing jointly whose federal adjusted gross income 185
for such taxable year is less than one hundred thousand dollars, (I) for 186
the taxable year commencing January 1, 2019, fourteen per cent of any 187
pension or annuity income, (II) for the taxable year commencing 188
January 1, 2020, twenty-eight per cent of any pension or annuity 189
income, (III) for the taxable year commencing January 1, 2021, forty-190
two per cent of any pension or annuity income, (IV) for the taxable 191
year commencing January 1, 2022, fifty-six per cent of any pension or 192
annuity income, (V) for the taxable year commencing January 1, 2023, 193
seventy per cent of any pension or annuity income, (VI) for the taxable 194
year commencing January 1, 2024, eighty-four per cent of any pension 195
or annuity income, and (VII) for the taxable year commencing January 196
1, 2025, and each taxable year thereafter, any pension or annuity 197
income; 198
(xxii) The amount of lost wages and medical, travel and housing 199
expenses, not to exceed ten thousand dollars in the aggregate, incurred 200
by a taxpayer during the taxable year in connection with the donation 201
to another person of an organ for organ transplantation occurring on 202
or after January 1, 2017; 203
(xxiii) To the extent properly includable in gross income for federal 204
income tax purposes, the amount of any financial assistance received 205
from the Crumbling Foundations Assistance Fund or paid to or on 206 Raised Bill No. 7071
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behalf of the owner of a residential building pursuant to sections 8-442 207
and 8-443; [, and] 208
(xxiv) To the extent properly includable in gross income for federal 209
income tax purposes, the amount calculated pursuant to subsection (b) 210
of section 12-704g for income received by a general partner of a 211
venture capital fund, as defined in 17 CFR 275.203(l)-1, as amended 212
from time to time; [and] 213
(xxv) To the extent any portion of a deduction under Section 179 of 214
the Internal Revenue Code was added to federal adjusted gross income 215
pursuant to subparagraph (A)(xiv) of this subdivision in computing 216
Connecticut adjusted gross income, twenty-five per cent of such 217
disallowed portion of the deduction in each of the four succeeding 218
taxable years; [.] 219
(xxvi) To the extent not deductible in determining federal adjusted 220
gross income, ordinary and necessary expenses paid or incurred for the 221
care of any person seventy years of age or older related by blood, 222
adoption or marriage to the taxpayer during the taxable year in an 223
amount not to exceed sixty thousand dollars for the cost of full-time home 224
health care, including, but not limited to, the cost of medical supplies and 225
in-home services provided by homemaker-home health aides and other 226
home health care agency providers as such services and providers are 227
defined in section 19a-490; 228
(xxvii) To the extent not deductible in determining federal adjusted 229
gross income, ordinary and necessary expenses paid or incurred for the 230
care of a qualifying individual, as defined in Section 21(b)(1)(A) of the 231
Internal Revenue Code, in an amount not to exceed three thousand 232
dollars; and 233
(xxviii) To the extent not deductible in determining federal adjusted 234
gross income, ordinary and necessary expenses paid or incurred for the 235
care of a qualifying individual, as defined in Sections 21(b)(1)(B) and 236
21(b)(1)(C) of the Internal Revenue Code, in an amount not to exceed sixty 237
thousand dollars for the cost of full-time home health care, including, but 238 Raised Bill No. 7071
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not limited to, the cost of medical supplies and in-home services provided 239
by homemaker-home health aides and other home health care agency 240
providers as such services and providers are defined in section 19a-490. 241
This act shall take effect as follows and shall amend the following
sections:
Section 1 from passage and
applicable to taxable years
commencing on or after
January 1, 2019
12-701(a)(20)(B)
AGE Joint Favorable