AN ACT CONCERNING THE PERSONAL INCOME TAX DEDUCTIONS FOR SOCIAL SECURITY BENEFITS, PENSION AND ANNUITY INCOME AND DISTRIBUTIONS FROM CERTAIN INDIVIDUAL RETIREMENT ACCOUNTS.

HB 5154 changes Connecticut's state personal income tax rules for retirees by creating a new deduction for Social Security benefits, pension/annuity income, and certain retirement account distributions. It allows single filers (or married filing separately) to deduct up to $100,000 of these income types annually, and married couples filing jointly or heads of household to deduct up to $200,000. The bill replaces existing deduction rules and aims to eliminate a previous "marriage penalty" where combined retiree income triggered higher taxes for couples. This directly affects Connecticut residents receiving these retirement income sources who file state taxes.