Military spouse tax relief act connecticut

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Summary of Connecticut Military and Veteran Benefits: Connecticut offers special benefits for Service members, Veterans and their Families including a Soldiers, Sailors' and Marines' Fund, state employment preferences, education and tuition assistance, vehicle tags, as well as hunting and fishing license privileges. Eligibility for some benefits may depend on residency, military component, and Veteran disability status.

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Connecticut Department of Veterans Affairs, Office of Advocacy and Assistance, Veterans Service Officers: The Connecticut Department of Veterans Affairs, Office of Advocacy and Assistance has trained Veteran Service Officers who can assist Veterans, and their Families find and apply for benefits under federal, state and local laws.

State Benefit Highlights and Eligibility

Welcome to Connecticut

What are my Connecticut Military and Veteran State Taxes Benefits?

Connecticut Income Tax on Military Pay: Connecticut resident Service members are required to pay state taxes on their military pay unless they meet all the following requirements:

Service members who do not meet all the conditions above but lived outside the U.S. for an extended period may qualify to be treated as nonresidents under the "Group B Exception". See the Connecticut Nonresident and Part-Year Resident Income Tax Information for the Group B Exception rules.

In addition, Connecticut offers the same benefits offered for federal taxes to Service members serving in a combat zone or during a contingency operation. These benefits in general include:

Connecticut State Tax Exemption for Military Retired Pay: Retired Service members do not have to pay Connecticut income taxes on military retired pay if their military retired pay is taxed on their federal income tax return.

Former Spouses of retired Service members who receive part of the Service member’s military retired pay under a final decree of divorce, dissolution, annulment, legal separation, or a court ordered property settlement do not qualify for the 100% military retired pay tax exemption.

Connecticut State Taxes on Military Disability Retirement Pay: Military disability retirement pay received as a pension, annuity or similar allowance for personal injury or sickness resulting from active service in the U.S. Armed Forces is not taxed in Connecticut. Some of the payments which are considered disability benefits include:

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Connecticut State Taxes on U.S. Department of Veterans Affairs Disability Dependency and Indemnity Compensation (DIC): DIC is a tax-free monetary benefit paid to eligible survivors of Service members who died in the line of duty or eligible survivors of Veterans whose death resulted from a service-connected injury or disease.
Connecticut Income Tax information for Armed Forces Personnel and Veterans

Connecticut Taxes on Survivor Benefit Plan (SBP), Reserve Component Survivor Benefit Plan (RCSBP), and Retired Serviceman’s Family Protection Plan (RSFPP) Annuities: SBP, RCSBP and RSFPP annuities are not subject to Connecticut income taxes.

Connecticut Military Spouse Residency Relief Act: A nonresident military Spouse who has the same state of residence as a nonresident Service member, who is stationed in Connecticut under military orders, is exempt from Connecticut income taxes on wages earned in Connecticut. The nonresident Spouse must pay taxes (if required) to their state of residence.

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Connecticut Veteran Property Tax Exemptions: *New* Recent legislation signed by the governorauthorizes a complete property tax exemption for Veterans who have a total and permanent service-connected disability rating from the VA. Eligible Veterans who do not own a home will be authorized a complete property tax exemption on one motor vehicle. This exemption will take effect 1 October 2024 and will apply to the Veteran’s 2025 tax bill.
Connecticut Governor's Press Release

Connecticut property tax is administered by local municipalities. These municipalities have the option to interpret and apply exemptions at their discretion, within the framework established by state law. For specific eligibility and exemption amounts Veterans should contact their local municipality.

Connecticut property tax exemptions are the reduction of the assessed value of a property for tax purposes and can be applied toward either real estate or automobile property taxes. In general exemptions are available for: