Retirement income in Connecticut
Varies
Does Connecticut Tax Retirement Income?
Short answer: Partly. Pension and annuity income is 100% deductible if AGI is under $75,000 (single) or $100,000 (joint), phasing out to zero at $100,000/$150,000. IRA distributions get the same deduction on the same phase-out (75% in 2025, 100% from 2026).
Government pensions: Connecticut teachers' retirement pay qualifies for at least a 50% deduction regardless of income. Pensions, traditional IRA and 401(k) withdrawals are taxable federally either way; Roth withdrawals after 59½ (5-year rule met) are tax-free.
Records to keep: Keep your state return, W-2s and 1099s (1099-R, SSA-1099), and any state credit worksheets. Check your state revenue department's current-year instructions before you file.
Retirement income in Connecticut
Varies
Individuals / Personal Taxes
Partly. Pension and annuity income is 100% deductible if AGI is under $75,000 (single) or $100,000 (joint), phasing out to zero at $100,000/$150,000. IRA distributions get the same deduction on the same phase-out (75% in 2025, 100% from 2026).
Business justification
Partly. Pension and annuity income is 100% deductible if AGI is under $75,000 (single) or $100,000 (joint), phasing out to zero at $100,000/$150,000. IRA distributions get the same deduction on the same phase-out (75% in 2025, 100% from 2026). Government pensions: Connecticut teachers' retirement pay qualifies for at least a 50% deduction regardless of income. Pensions, traditional IRA and 401(k) withdrawals are taxable federally either way; Roth withdrawals after 59½ (5-year rule met) are tax-free.
Category
- Personal Tax Deductions