Gov. Ned Lamont announced that the Connecticut Earned Income Tax Credit is scheduled to increase from its current 23% rate of the federal credit to 30.5% later this year.
The Connecticut Earned Income Tax Credit was created in 2011 and has had varying rates over the last decade, including 30% in 2011 and 2012, 25% in 2013, 27.5% from 2014 to 2016, and 23% from 2017 to 2020. With the new 30.5% rate, a family with two qualifying children will receive up to $1,824 from the state, compared to $1,362 in 2020
The rate increase was part of the fiscal year 2022-23 biennial state budget. According to a statement issued by Lamont”™s office, the increase will result in an additional $40 million being delivered to the nearly 195,000 low- and moderate-income households for a total of $158 million.
“Numerous studies have shown that this tax credit is one of the best anti-poverty tools we can use because it encourages work, boosts economic stability, and uplifts generations to come,” Lamont said.
“Ultimately, these tax credits improve entire communities because these dollars are being invested right back into our local economy through groceries, transportation, clothing, rent, utilities and other necessary expenses. In this time of economic uncertainty for so many, we need to make sure Connecticut”™s working families know about this tax credit and file taxes to claim it.”
