State tax agency: Error made in calculating property tax credit
HARTFORD — Connecticut’s Department of Revenue Services says an error was made in calculating the property tax credit on thousands of state income tax returns and many of those taxpayers will have to pay the difference.
Commissioner Kevin Sullivan said Friday that affected taxpayers who’ve received refunds or filed their taxes will be notified by mail if their credit was too high. Those determined to have underpaid will be billed, without penalty.
DRS said the mistake does not affect single filers claiming the credit, which is up to $300 for 2015 income.
Approximately 7 percent, or 120,000 income tax returns processed may have resulted in a higher credit to the resident’s tax liability.
DRS failed to notify CPAs and tax preparation software companies of eligibility changes the legislature made to the credit. The error amounts to $11 to $12 million in under payments.