But do you know about the increased income threshold for the Social Security income tax deduction?
Or the new organ donation expense deduction?
These are 2 of the lesser noticed provisions of Connecticut’s new budget bill. Take a look:
Social Security income tax deduction
Effective for taxable years beginning after 2018 (this was supposed to become available for tax years beginning after 2017), individual taxpayers may deduct 100% of Social Security income, if federal adjusted gross income (AGI) is less than:
- $75,000 for single filers and married taxpayers filing separately (up from $50,000); or
- $100,000 joint filers and heads of household (up from $75,000).
Taxpayers with incomes equal to or greater than the thresholds qualify for a 75% deduction. The income thresholds are increased from $50,000 and $60,000, respectively.
Organ Donation Expense Deduction
Individual taxpayers who donate human bone marrow or all or part of a human liver, pancreas, kidney, intestine or lung for a transplantation occurring on or after January 1, 2017 may deduct up to $10,000 for lost wages and medical, travel and housing expenses, incurred by the taxpayer during the taxable year.