AN ACT ESTABLISHING PERSONAL INCOME TAX DEDUCTIONS FOR TIPS OR GRATUITIES AND OVERTIME PAY.
REF. TO JOINT COMM. ON Finance, Revenue and Bonding
Summary
The bill amends Connecticut’s tax statutes to let individual taxpayers deduct declared tips, gratuities and overtime pay from their state taxable income, mirroring the federal income‑tax deductions for those earnings. It applies to any Connecticut resident who receives such compensation, potentially lowering their state tax liability. Aligning state treatment with the federal system is intended to simplify filing and reduce the tax burden on workers.
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