Connecticut Lawmakers Eliminate Child Tax Credit for Middle Class Families

# Connecticut‘s New Tax Break for Working Families: What You Need to Know

Connecticut lawmakers just struck a budget deal that gives a new tax break to low-income working families. Broader tax relief for the middle class? That’ll have to wait for now.

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The new $200 state income tax break zeroes in on families with children or dependents who already qualify for Connecticut’s Earned Income Tax Credit (EITC). It’s not a game-changer, but it does offer immediate relief to some of the state’s most financially stretched residents.

Understanding the New EITC-Dependent Benefit

The tax break delivers $200 per eligible household. It doesn’t matter how many dependents you have—one or five, the amount’s the same.

Roughly 195,000 households from Hartford to New Haven will see this benefit. The state expects to spend about $26 million a year on it.

Who Qualifies for the New Benefit?

Only families that already qualify for Connecticut’s EITC can get this new break. Income limits depend on your filing status and how many kids you have:

Married couples with children: Income between $56,004 and $66,819

Single parents: Income between $49,084 and $59,899

Right now, the EITC program bumps up tax refunds by an average of $1,061 for folks in places like Bridgeport, Waterbury, and Stamford. This extra $200 adds a little more breathing room for families feeling squeezed by higher costs.

The Scaled-Back Approach to Tax Relief

Lawmakers had bigger plans at first, but this tax break is the result of compromise. Democrats originally pushed for a much broader child tax credit, including:

$600 per child

Up to $1,800 per household

Help for both low and middle-income families

That plan would have cost over $300 million a year. Even a smaller version—$150 per dependent, $83 million total—didn’t make the cut. People in Danbury and Norwich who hoped for more will have to wait and see what happens next time.

Fiscal Concerns Behind the Decision

Budget negotiators pointed to some big financial worries behind their decision:

Possible federal Medicaid cuts

General budget pressures

Concerns about long-term sustainability

Governor Ned Lamont supports the EITC expansion for communities like New London and Meriden, but he’s always been cautious about wider income redistribution at the state level. He suggested boosting property tax credits for the middle class, but lawmakers didn’t include that idea this time around.

Looking Ahead: The Future of Child Tax Credits in Connecticut

Even with the scaled-back budget, Democratic legislators say a bigger child tax credit is still high on their list. They see the new EITC-dependent benefit as an early move that will:

Give immediate help to the most vulnerable families

Set a precedent for policies focused on families

Help build momentum for broader relief in the future

People all over Connecticut, from Greenwich to Torrington, might see lawmakers push again for a broader child tax credit when budget talks pick up in 2026. Advocates keep insisting this kind of relief is crucial for working families who deal with financial stress, even in a state known for its wealth.

Sure, the $200 benefit isn’t huge compared to what some wanted. But for families scraping by, that extra support means something—it’s a nod to their struggles, even if it’s not a total fix.

Here is the source article for this story: CT lawmakers scrap child tax credit for middle class

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