Following the passage of Public Act 17-147, pension plan administrators or payers of pensions or annuities must now withhold income taxes from disbursements.Related Content: Ample tax cuts for business, wealthy in new GOP tax accord
Connecticut residents must file form CT-W4P indicating their pension and annuity withholding choices with their plan administrator. Otherwise, the top level of 6.99% will be withheld.Web Extra: Click here to get Connecticut Tax Form CT-W4P
“Many people who receive pensions or annuities rely on that income for day-to-day expenses, and while not a new or increased tax on these payments this change is potentially confusing and could cause some taxpayers to see a fluctuation in their checks or tax liability,” Rep. O’Neill said. “My hope is that these technical changes will not come as a surprise and taxpayers will be able to better anticipate their income or liability beforehand.”
The Department of Revenue Services has updated information available at www.ct.gov/DRS. Questions can be answered over the phone by calling 1-860-297-5962.