Implementer § 415 — Child Tax Rebate

Home Implementer § 415 — Child Tax Rebate

The bill establishes a one-time rebate for qualifying, domiciled taxpayers in Connecticut equal to $250 for each child (i.e., an individual who is age 18 or under as of December 31, 2021). Taxpayers may claim the credit for up to three children whom they validly claimed as dependents on their federal income tax return for the 2021 tax year.

Under the bill, taxpayers are eligible for the full rebate if their federal adjusted gross incomes (AGIs) for the 2021 tax year fall at or below certain thresholds, which vary by filing status. For taxpayers with incomes exceeding these thresholds, the rebate phases out at a rate of 10% for every $1,000, or fraction of $1,000, of AGI exceeding the threshold (e.g., a single filer with a federal AGI of $101,500 is eligible for 80% of the full rebate amount). The below table indicates the income thresholds at which taxpayers are (1) eligible for the full rebate and (2) not eligible for the rebate.

 

Filing Status

Maximum Rebate

Threshold

No Rebate

Federal AGI <

Federal AGI >

Single or Married Filing Separately

$100,000

$109,000

Head of Household

$160,000

$169,000

Joint Filers or Surviving Spouse

$200,000

$209,000

To claim a rebate, a taxpayer must apply to the Department of Revenue Services by July 31, 2022. The commissionermust (1) make the application available by June 1, 2022, and (2) require any information necessary to administer the bill’s provisions, including the name, age, and social security number of each child the taxpayer claimed as a dependent in the 2021 tax year. Applications must be filed with DRS electronically and under penalty of falsestatement.