Noon: Individual Tax Tips & Refund Strategies, Three Connecticut Credits New Haven Families and Self-Employed Filers Should Claim Before December 31

New Haven, Connecticut, October 10, 2026 | Tax guidance from Jose's Tax Service

For Connecticut residents, a few well-documented year-end decisions can affect the state return filed next year. Three items deserve particular attention: the new refundable child tax credit, the property tax credit, and the subtraction for contributions to a Connecticut Higher Education Trust (CHET) account.

This article addresses tax year 2026. The 2026 Connecticut return will be filed in 2027. As of October 10, 2026, Connecticut’s Department of Revenue Services (DRS) has not yet published the final 2026 Form CT-1040 and instructions. Review the final forms before filing; do not use a prior-year form as a substitute.

1. Check eligibility for Connecticut’s refundable child tax credit!

For tax year 2026, Connecticut’s new refundable credit provides up to $600 per qualifying child, for a maximum of three children. The maximum is $1,800 per return. The credit is intended to be claimed through the Connecticut income tax return, Form CT-1040; follow the final 2026 instructions for the precise filing steps and eligibility rules.

The credit is reduced as federal adjusted gross income (AGI) rises above the threshold for the filing status:

• Single or married filing separately: Full credit at or below $100,000; no credit above $109,000.
• Head of household: Full credit at or below $160,000; no credit above $169,000.
• Married filing jointly or qualifying surviving spouse: Full credit at or below $200,000; no credit above $209,000.

The phase-out reduces the available credit by 10% for each $1,000 of federal AGI above the applicable threshold. Do not assume that each child automatically qualifies. Confirm dependent information, filing status, and any age or other requirements in the final DRS guidance. Check the Connecticut DRS individual income tax forms page for the 2026 Form CT-1040 when it becomes available.

Because this credit is refundable, it may increase a refund even when the credit exceeds state income tax otherwise due. Keep records that support each child’s eligibility and your filing-status determination.

2. Review property taxes paid for the Connecticut property tax credit!

The Connecticut property tax credit is nonrefundable and may be worth up to $300. It can apply to qualifying property taxes paid on a primary residence or motor vehicle. Claim it on Schedule 3, Property Tax Credit, of Form CT-1040, subject to the eligibility rules, tax paid, and income-based phase-out.

Unlike a refundable credit, a nonrefundable credit can reduce Connecticut income tax only to the amount otherwise due. It generally cannot produce a refund by itself. The allowable amount may also be lower than $300 if qualifying taxes paid or the phase-out calculation limit the credit.

Before year-end:

• Collect property tax bills and proof of payment for your primary residence.
• Gather motor vehicle tax bills and receipts. Check that the vehicle and tax payment meet Connecticut’s eligibility requirements.
• Separate taxes paid during 2026 from bills paid in another year. The payment date can affect which return reports the tax.
• Review your Connecticut AGI and filing status. Do not calculate the phase-out using federal AGI unless the final form specifically instructs you to do so.

See the DRS Tax Information page and the final 2026 Form CT-1040 instructions for current eligibility details. Keep the bills and receipts with your 2026 tax records; an estimate or unpaid bill is not proof of payment.

3. Document CHET contributions before December 31!

Contributions to a qualified CHET account may be claimed as a Connecticut subtraction modification from federal AGI. This is not a tax credit. It reduces income used to calculate Connecticut tax, subject to the annual limit and the final 2026 rules.

Under the limits reflected in current DRS guidance, the annual subtraction is generally capped at $5,000 for single, head-of-household, and married-filing-separately filers, and $10,000 for married-filing-jointly filers. Qualifying excess contributions may be carried forward for up to five succeeding tax years, subject to the annual limit. Confirm that the 2026 Schedule CT-CHET preserves these limits when DRS publishes it.

To support your subtraction, save CHET account statements or contribution confirmations showing the amount and date of each contribution. Contributions intended for tax year 2026 generally need to be made by December 31, 2026. Check the DRS individual income tax forms page for Schedule CT-CHET and its instructions.

Retirees: Review Social Security and retirement-income adjustments!

Connecticut may provide favorable treatment for Social Security and certain retirement income, but the applicable rules depend on income, filing status, and the type of distribution.

• Social Security: Benefits are fully exempt from Connecticut income tax when federal AGI is below $75,000 for single or married-filing-separately filers, or $100,000 for married-filing-jointly, qualifying surviving spouse, or head-of-household filers. Above those thresholds, a partial adjustment may still be available. Use the final 2026 Form CT-1040 instructions and applicable worksheet.
• Qualifying pension, annuity, and non-Roth IRA distributions: A 100% deduction may be available below the applicable federal AGI threshold. The deduction phases down as income increases and is fully phased out at $100,000 for single filers and $150,000 for joint filers. Filing-status rules matter. For example, DRS guidance distinguishes the head-of-household threshold for pension and annuity income from the Social Security threshold. Check the final 2026 instructions before claiming a subtraction.

Do not treat withholding as proof that income is taxable or exempt. Compare your year-to-date retirement income and withholding with the Connecticut rules, and retain Forms SSA-1099, 1099-R, and any pension statements. If your income is near a threshold, have the calculation reviewed before filing.

Federal Schedule 1-A is separate from Connecticut credits!

For 2026, federal Schedule 1-A (Form 1040), Additional Deductions, includes deductions that may apply to qualified tips, qualified overtime premium, and interest on certain qualifying car loans. The maximum amounts are $25,000 for qualified tips, $12,500 for qualified overtime premium for most non-joint filers or $25,000 for joint filers, and $10,000 for qualifying car-loan interest.

These are federal deductions, not Connecticut credits. Eligibility requirements and income phase-outs apply. For overtime, only the qualifying premium portion, not all overtime wages, may count. Keep pay statements, employer records, and loan documentation. Review the IRS Schedule 1-A information and current IRS instructions before claiming an amount.

Complete these year-end steps before December 31!

1. Gather property tax bills and motor vehicle tax receipts. Mark the date each qualifying payment cleared.
2. Confirm dependents and Social Security numbers. Check names and numbers against official Social Security records and review who qualifies as a dependent.
3. Document CHET contributions. Save account statements and confirmations, and make any intended 2026 contribution by December 31.
4. Verify withholding. Compare current federal and Connecticut withholding with expected income, including self-employment, retirement, and other income. Correcting an imbalance may help limit a surprise tax bill.
5. Organize federal deduction records. Preserve pay statements for qualified tips or overtime and loan documents for any potentially eligible vehicle interest.
6. Book a year-end planning appointment. Ask for a review of income, potential credits, estimated payments, and records needed for filing.

Jose’s Tax Service offers year-end tax planning appointments, in-person service in New Haven, and virtual appointments for clients beyond Connecticut. Same-day availability may be available. Contact Jose’s Tax Service or review our tax preparation services in New Haven.

December 31 is the key date for 2026 contributions and other year-end actions. Begin gathering records now. The 2026 return is filed during the 2027 filing season; confirm the official opening date and filing deadline with DRS and the Internal Revenue Service (IRS) when announced. The federal and Connecticut filing deadline is generally in April, but the final date should be checked for the applicable filing season.

Category: Tax Planning | Tags: tax refund, personal finance, IRS tips, New Haven taxes