Pass the SALT. It’s Tax Day
HARTFORD — Monday is the day of reckoning for Connecticut taxpayers who are dealing with the effects of the nationwide changes in a state with high property taxes and accompanying limits on deductions for those with high property taxes.
According to the state Department of Revenue Services, extrapolating from 2015 tax data, more than 117,000 state filers may have to pay in excess of $10,000 in state and local taxes (SALT), which is the new standard deduction.
In 2015, 483,790 state filers claimed in excess of $10K in SALT deductions on their federal income tax return, but the DRS anticipates that most will change over their filing this year to the standard deduction.
During a noontime news conference in the Capitol, Senate Democrats on Monday are expected to use nonpartisan legislative research to estimate that Connecticut taxpayers are dealing with a $2.8 billion tax hike because of the 2017 tax law passed by President Donald Trump and Republicans.
But Tony Cirone, a Bethel CPA, said in a recent interview that businesses have it easier because the General Assembly last year passed legislation to allow so-called pass-through entities, including partnerships and S corporations, to take deductions for taxes owed to Connecticut.
“This is a lot of extra work for accounting firms and business entities,” said Cirone, a member of the Connecticut Society of CPAs, anticipating that fewer people will now be itemizing their deductions.
Scott D. Jackson, state commissioner of Revenue Services, said the agency expects more than 1.88 million income-tax returns to be filed this tax season, with nine out of 10 filed electronically.
Jackson suggested that those up against the midnight Monday deadline file electronically and seek assistance from the DRS if needed.
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