by HARTFORD, CT – As tax season approaches in 2025, many Connecticut seniors are asking what additional deductions they qualify for once they turn 65. While Connecticut follows most federal tax rules, the state also provides its own retirement-friendly tax relief, including special deductions and exemptions for older residents. Understanding how the extra standard deduction for seniors works can make a meaningful difference in lowering taxable income.
Federal vs. State: How Connecticut Handles Deductions
At the federal level, taxpayers age 65 and older are entitled to a higher standard deduction. For 2025, the IRS allows seniors to claim an additional $1,950 if filing single or head of household, or $1,550 each if married and filing jointly.
In Connecticut, the state begins with your federal adjusted gross income (AGI) and then applies state-specific exemptions, credits, and deductions. This means seniors first benefit from the federal extra standard deduction, and then may qualify for state-level tax breaks.
Extra Relief for Connecticut Seniors
While Connecticut does not call its provision an “extra standard deduction,” it provides targeted relief that functions in a similar way:
- Retirement Income Exemptions: Social Security income is fully exempt for individuals earning below $75,000 (single) or $100,000 (married filing jointly). Partial exemptions apply above those thresholds.
- Pension and Annuity Exemptions: Starting in recent years, Connecticut has phased in deductions for pensions and annuities, with up to 100% exemption available by 2025 for qualifying seniors.
- Property Tax Credit: Seniors who own homes may qualify for up to $300 in property tax credits against their state income taxes, depending on income.
Together, these measures serve as Connecticut’s way of ensuring seniors see meaningful relief as living costs rise.
Example: How It Works in Practice
Imagine a 68-year-old single taxpayer living in Hartford with $50,000 in annual income, including Social Security and pension benefits:
- At the federal level, they would first receive the standard deduction of $14,600 plus the extra $1,950 for being over 65.
- At the state level, their Social Security income would likely be fully exempt, while pension income could be largely excluded thanks to the phased-in exemptions.
The result: their taxable income in Connecticut could be significantly lower than it first appears on paper.
Important Eligibility Rules
Not every senior automatically qualifies for every deduction. Key things to keep in mind:
- You must be age 65 or older by the end of the tax year to claim the higher federal standard deduction.
- Income thresholds apply for Connecticut’s Social Security and pension exemptions. Seniors above those limits may still owe state taxes.
- Property tax credits require filing a Connecticut income tax return and meeting residency and income guidelines.
Read Also: Understanding the Wisconsin Extra Standard Deduction for Seniors Over 65
Why It Matters in 2025
With inflation and housing costs hitting Connecticut residents hard, these tax breaks can help seniors keep more of their income. For retirees living on fixed incomes, understanding how the extra deduction and state exemptions fit together is essential for budgeting and planning.
Tax experts recommend that seniors in Connecticut:
- Review their filing status to make sure they’re claiming the correct standard deduction.
- Track their income sources to see whether Social Security and pensions are exempt.
- Consider itemizing deductions if property taxes and medical expenses exceed the standard deduction.
Bottom Line
Seniors in Connecticut over 65 can take advantage of both the federal extra standard deduction and the state’s exemptions on Social Security, pensions, and property taxes. These combined benefits can reduce taxable income by thousands of dollars, easing financial stress during retirement.
Are you a Connecticut senior who has used these deductions before? Do you think the state should expand tax relief for retirees? Share your thoughts in the comments at ibwhsmag.com.
