HB 5099 — AN ACT CONCERNING AN INCOME TAX DEDUCTION FOR LONG-TERM CARE INSURANCE PREMIUMS.

General Assembly SubstituteRaised Bill No.

5099 February Session, 2020 ANLCO ACTNo. CONCERNING AN INCOME TAX DEDUCTION FOR LONG- TERM CARE INSURANCE PREMIUMS.

1163 Referred to Committee on AGING Introduced by:

(AGE) AN ACT CONCERNING AN INCOME TAX DEDUCTION FOR LONG- TERM CARE INSURANCE PREMIUMS.

(iii) To the extent properly includable in gross income for federal income tax purposes, the amount of any refund or credit for overpayment of income taxes imposed by this state, or any other state ofLCO theNo. United States or a political subdivision thereof, or the District of Columbia;

(iv)1163 To1 theof extent8 properlyRaised includableBill inNo.5099 grossof incomethe forUnited federalStates LCOor \\PRDFS1\HCOUSERS\BARRYJN\WS\2020HB-05099-R011a ofpolitical 8subdivision HB.docxthereof, Substituteor Billthe No.District of Columbia;

5099(iv) To the extent properly includable in gross income for federal income tax purposes and not otherwise subtracted from federal adjusted gross income pursuant to clause (x) of this subparagraph in computing Connecticut adjusted gross income, any tier 1 railroad retirement benefits;

(ix) Ordinary and necessary expenses paid or incurred during the taxable year for the production or collection of income which is subject LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2020HB-050992 of 8 R01-HB.docx } Substitute Bill No.

50991163 to2 taxation under this chapter but exempt from federal income tax, or the management, conservation or maintenance of property8 heldRaised forBill theNo. production of such income, and the amortizable bond premium for the taxable year on any bond the interest on which is subject to tax under this chapter but exempt from federal income tax, to the extent that such expenses and premiums are not deductible in determining federal adjusted gross income and are attributable to a trade or business carried on by such individual;

5099 (ix) Ordinary and necessary expenses paid or incurred during the taxable year for the production or collection of income which is subject to taxation under this chapter but exempt from federal income tax, or the management, conservation or maintenance of property held for the production of such income, and the amortizable bond premium for the taxable year on any bond the interest on which is subject to tax under this chapter but exempt from federal income tax, to the extent that such expenses and premiums are not deductible in determining federal adjusted gross income and are attributable to a trade or business carried on by such individual;

(II) For taxable years commencing prior to January 1, 2019, for a person who files a return under the federal income tax as an unmarried individual whose federal adjusted gross income for such taxable year is fifty thousand dollars or more, or as a married individual filing separately whose federal adjusted gross income for such taxable year is fifty thousand dollars or more, or for a husband and wife who file a return under the federal income tax as married individuals filing jointly whose federal adjusted gross income from such taxable year is sixty thousand dollars or more or for a person who files a return under the federal income tax as a head of household whose federal adjusted gross income for such taxable year is sixty thousand dollars or more, an amount equal to the difference between the amount of Social Security LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2020HB-05099- 3 of 8 R01-HB.docx } Substitute Bill No.

50991163 3 of 8 Raised Bill No.5099 amount equal to the difference between the amount of Social Security benefits includable for federal income tax purposes and the lesser of twenty-five per cent of the Social Security benefits received during the taxable year, or twenty-five per cent of the excess described in Section 86(b)(1) of the Internal Revenue Code;

and (IV) For the taxable year commencing January 1, 2019, and each taxable year thereafter, for a person who files a return under the federal income tax as an unmarried individual whose federal adjusted gross income for such taxable year is seventy-five thousand dollars or more, or asamarriedindividualfiling separately whosefederaladjustedgross income for such taxable year is seventy-five thousand dollars or more, or for a husband and wife who file a return under the federal income tax as married individuals filing jointly whose federal adjusted gross income from such taxable year is one hundred thousand dollars or more or for a person who files a return under the federal income tax as a head of household whose federal adjusted gross income for such taxable year is one hundred thousand dollars or more, an amount equal to the difference between the amount of Social Security benefits includable for federal income tax purposes and the lesser of twenty-five per cent of the Social Security benefits received during the taxable year, or twenty-five per cent of the excess described in Section 86(b)(1) of the Internal LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2020HB-05099- 4 of 8 R01-HB.docx } Substitute Bill No.

50991163 4 of 8 Raised Bill No.5099 Revenue Code;

(xvii) To the extent properly includable in gross income for federal LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2020HB-050995 of 8 R01-HB.docx } Substitute Bill No.

50991163 5 of 8 Raised Bill No.5099 income tax purposes, any income received from the United States government as retirement pay for a retired member of (I) the Armed Forces of the United States, as defined in Section 101 of Title 10 of the United States Code, or (II) the National Guard, as defined in Section 101 of Title 10 of the United States Code;

(xxi) To the extent properly includable in gross income for federal income tax purposes, except for retirement benefits under clause (iv) of this subparagraph and retirement pay under clause (xvii) of this LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2020HB-050996 of 8 R01-HB.docx } Substitute Bill No.

50991163 6 of 8 Raised Bill No.5099 subparagraph, for a person who files a return under the federal income tax as an unmarried individual whose federal adjusted gross income for such taxable year is less than seventy-five thousand dollars, or as a married individual filing separately whose federal adjusted gross income for such taxable year is less than seventy-five thousand dollars, or as a head of household whose federal adjusted gross income for such taxable year is less than seventy-five thousand dollars, or for a husband and wife who file a return under the federal income tax as married individuals filing jointly whose federal adjusted gross income for such taxableyearislessthanonehundredthousanddollars,(I)forthetaxable year commencing January 1, 2019, fourteen per cent of any pension or annuity income, (II) for the taxable year commencing January 1, 2020, twenty-eight per cent of any pension or annuity income, (III) for the taxable year commencing January 1, 2021, forty-two per cent of any pension or annuity income, (IV) for the taxable year commencing January 1, 2022, fifty-six per cent of any pension or annuity income, (V) for thetaxableyearcommencing January 1,2023,seventypercent ofany pension or annuity income, (VI) for the taxable year commencing January 1, 2024, eighty-four per cent of any pension or annuity income, and (VII) for the taxable year commencing January 1, 2025, and each taxable year thereafter, any pension or annuity income;

(xxiv) To the extent properly includable in gross income for federal income tax purposes, the amount calculated pursuant to subsection (b) LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2020HB-050997 of 8 R01-HB.docx } Substitute Bill No.

1163 7 of 8 Raised Bill No.

and (xxvi) For the taxable year commencing January 1, 2020, and each taxable year thereafter, the amount of any premiums paid in the taxable year for a long-term care insurance policy issued or regulated pursuant to section 38a-475, 38a-501 or 38a-528.

Section 1 from passage and 12-701(a)(20)(B) applicable to taxable years commencing on or after January 1, 2020 AGEStatement Jointof FavorablePurpose: Subst.

C/RTo FINencourage LCOthe {\\PRDFS1\HCOUSERS\BARRYJN\WS\2020HB-05099-purchase 8 of 8long-term R01-HB.docxcare }insurance.

[Proposed deletions are enclosed in brackets.

Proposed additions are indicated by underline, except that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not underlined.] LCO No.

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