Connecticut Tax Updates Worth Knowing:

Written By Tim DeJulio

Connecticut Tax Updates Worth Knowing: EITC Expansion and Other 2025 Changes

Connecticut taxpayers live in two systems at once: federal rules and state rules. Even when your federal return is straightforward, Connecticut changes can affect refunds, credits, and planning—especially for working families.

Connecticut EITC: what changed

Connecticut offers a refundable Earned Income Tax Credit (EITC) for residents who qualify for the federal EITC. Connecticut lawmakers have continued to adjust how the state credit works.

For tax year 2025, Connecticut’s EITC includes an additional $250 for eligible filers who have at least one qualifying child (as reflected in Connecticut’s Schedule CT-EITC). (Connecticut Department of Revenue Services [CT DRS], 2025)

This is one of those changes that matters because it’s:

  • refundable (it can increase a refund), and

  • often missed when taxpayers file without reviewing state schedules.

Where taxpayers get tripped up

  • They assume software “just handles it” (usually, but only if inputs are correct).

  • They don’t realize a dependent detail changes EITC eligibility.

  • They file early with incomplete documents and end up amending.

Other CT tax items to watch

Connecticut’s DRS maintains a “Tax Information” page that highlights legislative changes and program updates that may apply to current and upcoming tax years. (CT DRS, n.d.)
Separately, Connecticut’s Office of Legislative Research publishes summaries of enacted legislation affecting taxes, which is useful when you want a neutral overview of what passed. (Connecticut General Assembly, 2025)

Practical planning moves for CT households and small businesses

1) Confirm residency and withholding. If you moved into or out of Connecticut, part-year rules can create surprises.
2) Track refundable credits intentionally. If you qualify, make sure you claim them—especially if your income fluctuates year to year.
3) For small businesses: keep Connecticut filings (sales/use tax where applicable, payroll withholding, annual reports) on a compliance calendar so nothing drifts.

The bottom line

Federal headlines get attention, but state-level rules are where many taxpayers leave money on the table. Connecticut’s EITC update is a great example: a small line on a schedule can translate into real dollars for eligible families.

References

Tim DeJulio
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