This newsletter summarizes Connecticut tax legislation enacted,
court decisions rendered, and administrative guidance published by
the Connecticut Department of Revenue Services (DRS) during
calendar year 2022. Please contact a member of our State and Local
Tax Practice Group if you have any questions regarding the new tax
law changes and how they may affect you and your business.
Personal Income Tax
I. Legislation
Pension and Annuity Exemption. The phase-in of
the general pension and annuity exemption from Connecticut taxable
income has been accelerated. Beginning with the 2022 tax year,
income-eligible taxpayers may deduct 100% of their qualifying
pension and annuity income from their Connecticut taxable income.
Under prior law, the exemption phased-in gradually between 2019 and
2025. This phase-in does not impact the planned phase-out of the
taxation of IRA distributions. Conn. Gen. Stat. §12-701, as
amended by Conn. Pub. Act No. 22-118 §410 (effective
