Plain English Breakdown
The bill status shows it was referred to a committee on February 4, 2026, but the effective date is not listed in the provided metadata or text.
Increasing Tax Deductions for State College Savings Accounts
This bill raises the maximum amount of money taxpayers can deduct from their income tax when they contribute to state-run college savings plans.
What This Bill Does
- Increases the personal income tax deduction limit for individual filers from $5,000 to $7,500.
- Raises the deduction limit for married couples filing jointly from $10,000 to $12,500.
- Applies these changes only to contributions made to 529 qualified state tuition programs established and maintained by the state.
- Amends section 12-701a of the general statutes to reflect the new deduction amounts.
Who It Names or Affects
- Individual taxpayers who contribute to state-established college savings accounts.
- Married couples filing a joint tax return who make contributions to these programs.
Terms To Know
- Personal income tax deduction
- An amount of money subtracted from a taxpayer's total income before calculating how much tax they owe, which lowers their final tax bill.
- 529 qualified state tuition program
- A savings account created by the state to help families save for future education costs with specific tax benefits.
Limits and Unknowns
- The official text does not specify an effective date when these new deduction limits will begin.
- The source material does not explain how this change affects taxpayers who contribute more than the new limit amounts.
- It is unclear from the provided text if there are any restrictions on which specific state programs qualify for the increased deduction.