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Letter: Stamford Reps Explain Tax Changes

STAMFORD, Conn.—The following is a letter co-authored by State Representatives Livvy Floren, R-149 (Greenwich, Stamford) and Michael Molgano, R-144 (Stamford). TheDailyStamford.com will publish articles and letters written by any and all Stamford residents and politicians.

 Aug. 1 marks the start of three major changes to the Connecticut State Income Tax Withholding. Adjusted gross income along with tax filing status will determine the amount of change (if any). Any changes will be reflected in paychecks dated August 12, 2011.

Three major changes:

1. The number of tax brackets has increased from three to six. The new tax brackets are 3%, 5%, 5.5%, 6% and 6.7%.

2. The 3% rate is phased out for taxpayers with CT adjusted gross income as follows:

• Over $56,500 filing single

• Over $78,500 filing head of household

• Over $100,500 married filing jointly

• Over $50,250 married filing separately

3. Additional tax provisions require a recapture of tax from taxpayers over income brackets as follows:

• Adjusted gross income over $200,000 filing single

• Adjusted gross income over $320,000 for head of household

• Adjusted gross income over $400,000 for married filing jointly

• Adjusted gross income over $200,000 for married filing separate

 

Below are examples of the bi-weekly tax changes for an employee with a State filing status of single:

Annual Income                       Old Tax             New Tax           Difference

$ 30,000                                   $ 28.96             $ 28.96             $ 0.00

$ 60,000                                   $106.71             $112.93             $ 6.22

$100,000                                   $183.63             $223.09             $39.46

 

Please note, these tax changes are retroactive to January 1, 2011 and the new tables have been revised to include any “catch up” amount due through the end of the year. Here is a link to the tables you can check depending on you current withholding.

More detailed information can be found on the Department of Revenue website: www.ct.gov/drs.

To submit an article or letter to TheDailyStamford.com e-mail reporter Anthony Buzzeo, tbuzzeo@TheDailyStamford.com

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