A fourth stimulus check is nowhere to be seen, but some Connecticut families may be getting one soon additional money from the national government. This Connecticut coronavirus stimulus check isn’t exactly a direct payment, but it’s part of the state’s income tax credit program. Eligible recipients will receive this payment in the form of an additional tax refund.
Odey’s Special Situations Fund aims for uncorrelated returns
Governor Ned Lamont recently announced that he had asked the appropriate state agency to retroactively increase the state’s earned revenue for 2020. income tax. The income tax credit increases from 23% of the federal deduction to 41.5%.
Eligible families can receive an income tax credit of up to $1,000, depending on their income. The amount of enhanced credit a family gets depends on the size of their federal credit. The IRS uses taxpayer income, number of eligible children, and marital status to calculate the federal credit.
“For example, a single parent of two at the federal poverty level who received a state loan of $1,246 in the spring will now receive an additional $1,002 for a total state loan of $2,248,” Lamont’s office said.
This Connecticut coronavirus stimulus check would benefit approximately 200,000 low-to-middle-income families earning up to $56,844 in 2020 (couples with three or more eligible children). those earning up to $53,865 are also eligible for the payment.
One point to note is that families who would get this extra tax returns will be those who applied for the income tax credit for 2020.
Varying Rates of Earned Income Tax Reduction
It is estimated that the cost of issuing an additional tax refund would be $75 million, and it would be covered by the federal COVID-19 emergency funds that the state came under the CARES Act.
“Improving the 2020 Connecticut Earned Income Tax Credit will provide immediate relief to workers doing their best to provide for their families while facing pandemic costs from masks and tests to childcare and Internet access,” Governor Lamont said in a statement. statement. press release.
Connecticut introduced the income tax credit in 2011, and rates have varied over the past decade. The rate was 30% in 2011 and 2012, 25% in 2013, but was increased to 27.5% from 2014 to 2016. From 2017 to 2020, the rate was 23%, but was recently increased to 30.5% in the fiscal year 2022- The biennial state budget for 2023, which was signed in June.
The Connecticut Department of Revenue Services is expected to begin shipping the Connecticut coronavirus incentive checks to eligible households before the end of February.
“The Department of Revenue Services is proud to administer Connecticut’s Earned Income Tax Credit, which puts money back into the pockets of hard-working families,” said Connecticut Department of Revenue Services.