As a result of legislation enacted earlier this year, Connecticut residents will on August 1 see more taxes withheld from their paychecks. Single filers earning $50,000 a year will see about $200 in additional withholding through December, as will joint filers earning $100,000. Single filers making $100,000 will see about $605 removed from their paychecks. For joint filers at the $125,000 level, an additional $510 in taxes will be taken out to make up for the seven months that the new rates were in effect, but not yet collected. If a taxpayer’s adjusted gross income is $1 million, by the end of December he/she will have contributed $17,400 more to the state of Connecticut.
“You are going to see a bit of a jolt in August, but it falls again in January,” said Sarah Kaufman, spokeswoman for the state Department of Revenue Services (in typical revenue department understatement), as the new rates are again spread out over 12 months, rather than five. Kaufman said the department has been reaching out to businesses since May and alerting payroll companies in particular about the changes.
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