Mary E. O’Leary
HARTFORD — Residents may or may not have noticed that more items are now subject to the sales tax, but it will be hard to miss the additional taxes that will be withheld from their paychecks in a week’s time.
Starting on Aug. 1, the state will begin to capture the boost in the income tax for 2011 approved by lawmakers in May, which is retroactive to the beginning of the calendar year.
Single and joint 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 disappear from their paychecks.
It starts to jump up for joint filers at the $125,000 level when $510 in additional taxes will be taken out to make up for the seven months that the new rates were in effect, but not yet collected.
At the top end, if your adjusted gross income is $1 million, by the end of December, you will have contributed $17,400 more to the state of Connecticut, while those hauling in $2 million in salary, will send in some $19,400 in additional taxes.
“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, 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.
“We also have had a lot of people contacting us. Most employers became aware of the new tax tables shortly after the legislation went into effect,” she said.
Kaufman said they notified the Connecticut Business and Industry Association and the National Association of Computerized Tax Professionals on the income tax adjustments, as well as the Connecticut Retail Merchants Association on the sales tax changes.
Lawmakers made the income tax more progressive by adding three new brackets. The six marginal tax rates now range from 3 percent to 6.7 percent, which at the top end is .2 percent higher than what was in effect last year. This will still be lower than New York when it soon readjusts its highest bracket...
Read more:
http://www.nhregister.com/articles/2011/07/24/news/doc4e2b7320c6c09451017589.txt
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