Yesterday, we were proud to celebrate Partner, Shari Elias, at the 2025 CTCPA Women’s Awards Luncheon, an event that honors female CPAs and accounting professionals who are making meaningful contributions to their organizations, communities, and the accounting profession as a whole.

The CTCPA Women’s Awards recognize leaders who exemplify excellence, dedication, and impact. Shari’s recognition reflects her ongoing commitment to her clients, her colleagues, and the profession, as well as her leadership and influence within the accounting community. Her work continues to inspire those around her and reinforces the importance of mentorship, integrity, and professional growth.

As part of the award ceremony, a video highlighting Shari’s career, achievements, and professional journey was shared with attendees. We invite you to learn more about Shari and view the video featured during the luncheon by clicking the link below:

https://www.ctcpas.org/ctcpawomen2026sharielias

Please join us in congratulating Shari on this well-deserved recognition. We are honored to celebrate her accomplishments and proud to have her as a leader within our firm.

The One Big Beautiful Bill Act (OBBBA) establishes new individual federal income tax deductions for qualified income from tips and overtime. Although the OBBBA wasn’t signed into law until July 4, 2025, these new deductions were effectively made retroactive to January 1, 2025.

The IRS has announced it won’t issue revised information reporting forms for tax year 2025. That means workers and their tax advisors will have to determine the amount of eligible tips or overtime pay they received last year. On the bright side, the IRS did issue guidance in November on how to do so. If you’re someone who gets tips or works overtime, read on for some helpful background about claiming the new deductions on your 2025 return.

Tip Deduction Basics

Let’s start with tips. For tax years 2025 through 2028, the OBBBA established a new deduction that can potentially offset up to $25,000 of qualified tip income annually. And you don’t need to itemize to claim it.

Customers can pay eligible tips in cash, by credit card or through a tip-sharing arrangement. However, the deduction is available only if you receive tips in an occupation that the IRS has designated as customarily receiving such income. In September 2025, the IRS released proposed regulations that list dozens of occupations that qualify for the deduction, grouped into eight categories:

1. Beverage and food services,
2. Entertainment and events,
3. Hospitality and guest services,
4. Home services,
5. Personal services,
6. Personal appearance and wellness,
7. Recreation and instruction, and
8. Transportation and delivery.

For self-employed individuals, the deduction can’t exceed your net income — calculated before the deduction — from the same trade or business in which you earn the tips. If you’re married, you must file jointly with your spouse to claim the write-off.

Remember, you must first report your tip income to the IRS on your individual return. Then you can claim the deduction if you qualify. It’s important to understand that this tax break isn’t an income exclusion. Medicare tax will apply to your tip income, and Social Security tax usually will, too. Also, such income may still be fully taxable for state and local income tax purposes.

Tip Deduction Phaseout

The tip deduction that would otherwise be allowed up to the $25,000 limit begins to phase out when your modified adjusted gross income (MAGI) exceeds $150,000, or $300,000 if you’re married and file jointly. The deduction phases out in $100 increments for each $1,000 of MAGI, or a portion thereof, exceeding the applicable threshold. In this context, MAGI consists of your regular AGI plus certain tax-free offshore income that you probably don’t have.

Reporting Tip Income

You must also report tip income to your employer. IRS Publication 531, “Reporting Tip Income,” explains how to track and report your tips. But consult your tax advisor for help setting up a tailored, comprehensive employer-reporting approach. Your employer should withhold Social Security and Medicare taxes from the reported amount and include the reported amount on your Form W-2.

Important: If you received tips in 2025 that you didn’t report to your employer, or if your W-2 shows allocated tips that exceed what you reported, you must report the additional tip income on your tax return. You’ll also need to use Form 4137 to calculate and pay the employee share of Social Security and Medicare taxes. Consult your tax advisor for assistance.

Calculating Tip Deductions

Bear in mind that, for 2025, employers aren’t required to report qualified tip income amounts to workers. So, you may have to work with your tax advisor to do so. The IRS guidance includes examples of how to determine the amount of qualified tip income you received last year. Here are some adapted versions:

Server with accurately reported tips. Ann is a restaurant server whose W-2 shows she received $18,000 in tips, from which her employer withheld Social Security tax. The withholding was accurate, and Ann received no additional tips, so she didn’t need to complete Form 4137. The $18,000 counts as qualified tip income for purposes of calculating her deduction.

Bartender with additional tips. Bob, a bartender, reported $20,000 in tips to his employer. However, he also received $4,000 in unreported tips. So, he worked with his tax advisor to complete Form 4137, which was filed with his 2025 return. The $24,000 ($20,000 + $4,000) counts as qualified tip income for purposes of calculating Bob’s deduction.

Self-employed travel guide with complications. Dex is a self-employed travel guide who operates his business as a sole proprietorship. In 2025, he received $7,000 in tips from customers, paid through a third-party settlement organization (TPSO).

The TPSO sent Dex a Form 1099-K, showing $55,000 of total payments for 2025. His 1099-K doesn’t itemize his tips, but Dex kept a log showing the dates, customer names and tip amounts. Because of this thorough documentation, he can count the $7,000 as qualified tip income for purposes of calculating his deduction.

Overtime Deduction Basics

Now let’s move on to the new overtime deduction. Before the OBBBA, overtime income was fully taxable for federal income tax purposes. For the 2025 through 2028 tax years, the OBBBA established a new deduction that can offset up to $12,500 of qualified overtime income annually ($25,000 for joint filers). You can claim the deduction whether or not you itemize, but if you’re married, you must file a joint return with your spouse to claim the write-off.

All the points we mentioned above about tip income apply to overtime income. You’re required to report it and can claim the new deduction only if you qualify. The deduction isn’t an income exclusion; Social Security tax may apply, and Medicare tax will for sure. Also, overtime income may be fully taxable for state or local tax purposes.

Defining Qualified Overtime

Qualified overtime income is defined as extra compensation paid in compliance with the Fair Labor Standards Act (FLSA). The law generally requires time-and-a-half pay for worktime exceeding 40 hours in a workweek. We’ll call extra hourly amounts “overtime premiums.”

Qualified overtime income doesn’t include overtime premiums paid to FLSA-exempt employees, such as executives. It also excludes overtime premiums not required by the FLSA but mandated by state law or under certain contracts (for example, union-negotiated collective bargaining agreements). In other words, the overtime deduction is unavailable to employees who aren’t subject to the FLSA’s overtime pay requirements.

For instance, let’s say you worked 20 hours of overtime in the most recent pay period. Under the FLSA, you were paid $37.50 per hour for overtime compared to your regular hourly rate of $25. In this scenario, your overtime premium is $12.50 per overtime hour ($37.50 – $25), and your qualified overtime income for the period is $250 (20 × $12.50).

Overtime Phaseout

The overtime deduction that would otherwise be allowed up to the $12,500/$25,000 limit begins to phase out when MAGI exceeds $150,000 ($300,000 for joint filers). Like the tip deduction, the overtime deduction phases out in $100 increments for each $1,000 of MAGI, or a portion thereof, exceeding the applicable threshold.

For example, say you’re a single filer for 2025 with $20,000 in qualified overtime income from your regular job as a cable technician. But your MAGI is $175,000 thanks to a profitable side gig, which is $25,000 above the applicable threshold ($175,000 – $150,000). Under the phaseout, your overtime deduction can’t exceed $10,000 [$12,500 – (25 × $100)].

Or let’s say you’re a joint filer for 2025 with $30,000 of qualified overtime income from your tech support job. However, your MAGI is $400,000, which is $100,000 above the applicable threshold ($400,000 – $300,000). Under the phaseout, your overtime deduction can’t exceed $15,000 [$25,000 – (100 × $100)].

Calculating Overtime Deductions

Although your employer must include overtime pay as taxable income on your W-2, it’s not required to separately report your qualified overtime income for 2025. However, some employers may voluntarily notify employees of their total amounts of overtime income. If you’d like to pursue the deduction but your employer doesn’t provide the necessary information, consider requesting it. Or you can ask your tax advisor for help with the number-crunching.

In the event you don’t receive a separate accounting of your 2025 qualified overtime income, you must make a reasonable effort to determine whether you’re an FLSA-covered employee. Generally, this simply entails asking the appropriate person in your organization, such as an HR staff member. As mentioned, if you’re exempt from the FLSA’s requirements, you can’t claim the overtime deduction.

The recently issued IRS guidance includes examples for determining the amount of qualified overtime income received in 2025. Here are two adapted versions:

1. Abe’s two alternate realities. In a perfect world, Abe receives a statement from his employer showing that he was paid $5,000 in “FLSA overtime premium” during the year. He and his tax advisor can simply apply the $5,000 when calculating his 2025 overtime deduction.

In a less-perfect world, Abe’s employer issues a year-end statement showing total overtime pay of $15,000 in 2025, which includes his overtime premium plus his regular hourly wage for overtime hours. In this case, the overtime amount reported to Abe represents all the time-and-a-half pay for his overtime hours. To determine his qualified overtime income, Abe must divide $15,000 by three, yielding $5,000.

2. Bella’s generous employer. Bella works for an organization that pays overtime at twice the regular hourly rate, so her overtime premium equals 100% of regular pay. In 2025, Bella’s year-end pay stub shows she received $20,000 of overtime pay at the double pay rate. Because half of that amount represents the allowable overtime premium for deduction purposes, Bella’s qualified overtime income is $10,000 ($20,000 ÷ 2).

Valuable Opportunities One slight downside to the new tip and overtime deductions is that they’re not “above the line,” so they won’t reduce your AGI. The lower your AGI, the better, because it increases your odds of qualifying for various income-sensitive tax breaks. Nonetheless, the deductions are valuable tax-saving opportunities well worth pursuing under the right circumstances. If you believe you’re eligible for either or both, discuss the matter with your tax advisor.

Workers’ compensation is designed to help people who have been hurt on the job get back on their feet. However, it’s also an area that is ripe for potential abuse.

No matter what form it takes, workers’ comp fraud hurts everyone. Insurers pay billions of dollars a year in fake claims. Businesses also pay an higher insurance premiums and incur other costs such as:

• Production delays,
• Extra pay for employees working longer hours,
• Retraining, and
• Replacing equipment.

Employees suffer if they must put in longer hours or if companies reduce annual raises because of higher insurance premiums. Even consumers pay because higher costs are likely to translate into higher prices.

For all these reasons, it’s important to be on the lookout for workers’ comp fraud at your company.

The most common scheme is the phony workplace injury that’s later discovered when the employee is caught doing heavy lifting at home or seen working for another employer while collecting benefits.

While it is important to be alert to possible fraudulent claims, it is far more important to prevent them from happening in the first place. Let employees know that in most states, workers’ compensation claim fraud is a crime. Punishment varies from state to state but can include prison time and fines. According to the Coalition Against Insurance Fraud, there are several other ways to help combat workers’ comp fraud at your company:

• Verify carefully the references and background information of potential hires.
• Publicize your company’s workers’ compensation policy to all your employees, and provide them with updates at least once a year.
• Educate supervisors on how injuries decrease productivity and how workers’ comp costs affect the bottom line.
• Display fraud awareness posters and the National Insurance Crime Bureau’s hotline number, along with any hotline mechanisms from your state.
• Work with your insurer to set up a safety-management program that can help eliminate safety problems.
• Contact your insurer’s special investigation crimes unit immediately if you suspect a fraudulent claim and you have evidence or witnesses to back up your suspicion.
• Pay attention to employee complaints and concerns about their working conditions. The strongest predictor of fraud is a chronically disgruntled work force.

In the first episode of their new podcast, Senior Tax Manager, Christopher Ficocelli and Tax Manager Daniel Horvath discuss key year-end tax planning considerations for clients as the calendar year comes to a close.

Many tax strategies must be implemented before year-end to be effective. This episode highlights timely ideas that may help individuals and business owners plan proactively and avoid last-minute surprises.

🎧 We invite you to listen and contact our team to discuss how these strategies may apply to your specific situation.

https://open.spotify.com/episode/0oqWMBe8YBgglAhlXP527h?si=qonNPeqQTyy7m73fL1nqFQ

The IRS has issued new guidance regarding Trump Accounts, including the release of Notice on Trump Accounts, draft Form 4547, and related draft instructions. As this new program continues to take shape, staying informed will be essential for families and advisors preparing for its implementation.

To help taxpayers and practitioners monitor developments, the IRS has also introduced a new resource outlining a timeline of released guidance, along with key insights into how the program is expected to function once effective.

Overview of Trump Accounts

Trump Accounts are designed to support long-term savings for eligible children, with federal “seed” contributions initiating each account. While final regulations are still forthcoming, the IRS has signaled several important features and planning considerations.

Program Availability

The Trump Account program is expected to become available in mid-2026, with federal contributions scheduled to begin on July 4, 2026.

Eligibility is limited to:

Eligible Beneficiaries

Eligibility for Trump Accounts is limited to children who have not yet reached age 18 by the end of the calendar year and who have a valid Social Security Number. Each qualifying child may have only one funded Trump Account.

Account Setup

Accounts will be established by an authorized individual, which may include:

• A parent
• A legal guardian
• An adult sibling
• A grandparent

The authorized individual will serve as the trustee during the child’s minority, overseeing the account throughout its designated “growth period.”

Setup will be completed using IRS Form 4547 or via an expected online portal, according to the draft instructions released in December 2025.

Planning Considerations

As with any federally funded savings program, there are potential planning opportunities.

Once the initial governmental seed money is deposited, families may want to evaluate the benefits of completing a 100% trustee-to-trustee transfer to a qualified financial institution of their choosing. This strategy may provide greater flexibility in managing the account, depending on final regulations and custodial options.

Advisors should monitor forthcoming regulatory updates to ensure proper handling and compliance once transfers are permitted.

What Comes Next?

The IRS has announced a notice of intent to issue regulations interpreting Section 530A, which governs Trump Accounts. Final instructions for Form 4547 and updated rules for account administration are expected as we approach the program’s launch.

Our firm will continue to review new releases as they become available and provide timely updates to keep you informed.

The qualified business income (QBI) deduction was a centerpiece of the Tax Cuts and Jobs Act, which went into effect in 2018. Initially, it was only available through 2025, but the write-off was made permanent in a law enacted on July 4, 2025, and it’s available to eligible individuals.

The QBI deduction can be up to 20% of:

• QBI earned from a sole proprietorship or a single-member LLC that’s treated as a sole proprietorship for federal income tax purposes, plus,
• QBI from a pass-through business entity, meaning a partnership, an LLC that’s treated as a partnership for federal income tax purposes or an S corporation.

Pass-through businesses report their federal income tax items to their owners, who then take them into account on their owner-level returns. The QBI deduction, when allowed, is then written off at the owner level, and it can potentially be a big tax-saver.

Deduction Basics

QBI means qualified income and gains from an eligible business reduced by related deductions and losses. According to the IRS, QBI from a business is reduced by:

1. The allocable deduction for a contribution to a self-employed retirement plan,
2. The allocable deduction for 50% of your self-employment tax bill, and
3. The allocable deduction for self-employed health insurance premiums.

Income from the business of being an employee doesn’t count as QBI. The same is true of guaranteed payments received by a partner or an LLC member treated as a partner for tax purposes for services rendered to a partnership or LLC (often called partner salaries). Salary collected by an S corporation shareholder-employee does not count as QBI, nor does salary collected by a C corporation shareholder-employee.

On your Form 1040, the QBI deduction doesn’t reduce adjusted gross income (AGI). In effect, it’s treated the same as an allowable itemized deduction.

Unfortunately, the QBI deduction also doesn’t reduce your net earnings from self-employment for purposes of the self-employment tax nor does it reduce your net investment income for purposes of the 3.8% net investment income tax (NIIT) that can hit higher-income individuals.

Deduction Limitations

At higher income levels, unfavorable QBI deduction limitations come into play. For 2025, the limitations begin to phase in when taxable income (calculated before any QBI deduction) exceeds $201,750 ($403,500 if you’re a married joint filer). These amounts are up from $197,300 and $394,600, respectively, in 2025.

If your income exceeds the applicable phased-in number, your QBI deduction is limited to the greater of: 1) your share of 50% of W-2 wages paid to employees during the tax year and properly allocable to QBI, or 2) the sum of your share of 25% of such W-2 wages plus your share of 2.5% of the unadjusted basis immediately upon acquisition (UBIA) of qualified property.

The limitation based on the UBIA of qualified property is intended to benefit capital-intensive businesses like manufacturing or hotel operations. Qualified property means depreciable tangible property (including real estate) that’s owned by a qualified business and used by that business for the production of QBI. The UBIA of qualified property generally equals its original cost when it was first put to use in your business.

Finally, your QBI deduction can’t exceed 20% of your taxable income calculated before any QBI deduction and before any net capital gain amount (net long-term capital gains in excess of net short-term capital losses plus qualified dividends).

Unfavorable Rules for Specified Service Trades or Businesses

If your operation is a specified service trade or business (SSTB), QBI deductions begin to be phased out when your taxable income (calculated before any QBI deduction) exceeds an applicable threshold. See the right-hand box for what counts as an SSTB.

Bottom Line: If your taxable income exceeds the applicable complete phase-out number, you’re not allowed to claim any QBI deduction based on income from any SSTB.

Aggregating Businesses

Aggregating businesses can allow an individual with taxable income high enough to be affected by the limitations based on W-2 wages and the UBIA of qualified property to claim a bigger QBI deduction than if the businesses were considered separately.

For example, say you are a high-income individual who owns an interest in one business with lots of QBI but little or no W-2 wages and an interest in a second business with minimal QBI but lots of W-2 wages. Aggregating the two businesses can result in a healthy QBI deduction while keeping them separate could result in a lower deduction or maybe no deduction. However, you must pass tests set forth in IRS regulations to be allowed to aggregate businesses.

Key Point: You can’t aggregate a SSTB with any other business, including another SSTB.

Maximize the Benefits

The QBI deduction rules are explained in detail in IRS regulations that are lengthy and complex.  Your tax professional can advise you on how to get the best QBI deduction results and the best overall federal tax results in your specific circumstances.

Connecticut has enacted a new First-Time Home Buyer Savings Program designed to help residents save for homeownership while offering meaningful tax incentives to individuals and employers. The program was established under Act 25-1 (H.B. 8002), passed during the November 2025 Special Session, and becomes effective January 1, 2026.

Overview of the Program

Beginning with the 2027 tax year, eligible Connecticut residents will be able to deduct qualified contributions, interest, and certain withdrawals from a designated First-Time Home Buyer Savings Account. Additionally, employers who contribute to their employees’ accounts may qualify for a new business tax credit.

The program is intended to support first-time home buyers amid rising housing costs and encourage employers to participate in helping their workforce achieve homeownership.

Key Tax Benefits for Individuals

Individuals who open and contribute to a First-Time Home Buyer Savings Account may begin claiming tax deductions in the 2027 tax year. However, the program allows the 2027 deduction to include eligible contributions made as early as the 2026 tax year.

To qualify, account holders must meet federal adjusted gross income (AGI) limits:

• Single filers: AGI below $125,000
• Joint filers: AGI below $250,000

Eligible individuals may deduct:

• Annual contributions to the account, up to $2,500 for single filers or $5,000 for joint filers
• Accrued interest earned on the account
• Qualified withdrawals used by the account holder/beneficiary to pay or reimburse eligible first-time home buyer costs

Employer Tax Credits

Starting in the 2027 tax or income year, employers may receive a corporate business tax or personal income tax credit (excluding withholding tax) when they contribute to their employees’ First-Time Home Buyer Savings Accounts.

• The credit equals 10% of employer contributions,
• Capped at $2,500 per employee per year

This incentive provides employers an opportunity to support employee financial well-being while also benefiting from a state tax credit.

When Benefits Begin

Although the program is effective January 1, 2026, both deductions and credits first apply in the 2027 tax year. Importantly, contributions made in the 2026 tax or income year may still be counted toward the 2027 deduction or credit.

What This Means for Connecticut Residents and Employers

The First-Time Home Buyer Savings Program represents a significant step in supporting future homeowners and strengthening Connecticut’s workforce benefits landscape.

Individuals planning to purchase their first home can begin contributing to these accounts as early as 2026 to maximize future deductions. Employers may also wish to consider incorporating contributions into their benefits packages starting in 2026 to take full advantage of the 2027 credit.

Our team at Beers, Hamerman, Cohen & Burger, P.C. is available to help individuals and employers evaluate eligibility and plan ahead for these new opportunities. If you have questions about how this program may impact your tax planning, please contact us.

One could say that there are only two key milestones in retirement planning: the day you begin participating in a retirement savings account and the day you begin drawing money from it. But, of course, there are others as well.

One is the day you turn 50 years old. Why? Because those age 50 or older on December 31 of any given year can start making “catch-up” contributions to their employer-sponsored retirement plans by that date. These are additional contributions to certain retirement accounts beyond the regular annual limits.

Maybe you haven’t yet saved as much for retirement as you’d like to. Or perhaps you’d just like to make the most of tax-advantaged savings opportunities. Whatever the case may be, let’s get caught up with the latest catch-up contribution amounts.

401(k)s and SIMPLEs

Under 2026 limits for 401(k)s, if you’re age 50 or older, after you’ve reached the $24,500 maximum limit for all employees, you can contribute an extra $8,000, for a total of $32,500. (In 2025, the contribution limit was $23,500 with a $7,500 catch-up contribution for those age 50 or older.) 

If your employer offers a Savings Incentive Match Plan for Employees (SIMPLE) instead, your regular contribution maxes out at $17,000 in 2026 (up from $16,500 in 2025). If you’re 50 or older, you’re allowed to contribute an additional $4,000 in 2026 (up from $3,500 in 2025). That means if you’re eligible for catch-up contributions in 2026, you can contribute $21,000 in total for the year.

But check with your employer because, while most 401(k) plans and SIMPLEs offer catch-up contributions, not all do.

Self-Employed Plans

If you’re self-employed, retirement plans such as an individual 401(k) — or solo 401(k) — also allow catch-up contributions. A solo 401(k) is a plan for those with no other employees. You can defer 100% of your self-employment income or compensation, up to the limit of $24,500 in 2026, plus an $8,000 catch-up contribution. These amounts are up from $23,500 in 2025, plus a $7,500 catch-up contribution. 

Keep in mind that this is just the employee salary deferral portion of the contribution. You can also make an “employer” contribution of up to 20% of self-employment income or 25% of compensation. 

IRAs, Too

Catch-up contributions to a traditional (non-Roth) account not only can enlarge your retirement nest egg but also may reduce your tax liability. And keep in mind that catch-up contributions are available for IRAs, too, and the deadline for 2026 contributions is April 15, 2027. The amount you can contribute to a traditional or Roth IRA in 2026 is $7,500 with a $1,100 catch-up contribution (up from $7,000 and $1,000, respectively, for 2025. If you have questions about catch-up contributions or other retirement saving strategies, contact your tax advisor.

As we approach the end of the 2025 tax year, we want to bring to your attention a valuable tax planning strategy known as “bunching” itemized deductions. For 2025, the standard deduction amounts have increased to $31,500 for married filing jointly, $23,625 for head of household, and $15,750 for single or married filing separately. These amounts are adjusted annually for inflation.

Recent legislation has temporarily increased the State and Local Tax (SALT) deduction limit for individuals who itemize deductions on Schedule A (Form 1040). For 2025, the maximum SALT deduction is $40,000 ($20,000 if married filing separately). This limit applies to state and local income taxes, general sales taxes (if elected instead of income taxes), real property taxes, and personal property taxes.

Please note, if your modified adjusted gross income (AGI) exceeds $500,000 ($250,000 if married filing separately), the deduction begins to phase out but cannot be reduced below $10,000 ($5,000 if married filing separately).
If your annual itemized deductions are close to the standard deduction, you may benefit by timing certain deductible expenses—such as charitable contributions, medical expenses, or state and local taxes—so that they are concentrated in one year. This can allow you to exceed the standard deduction in that year and itemize, while taking the standard deduction in alternate years. This approach may help maximize your overall tax savings over multiple years.
Careful planning is needed, especially for taxpayers who may be subject to the alternative minimum tax (AMT), as certain itemized deductions do not reduce AMT liability.

Additionally, for tax years beginning after 2025, high-income taxpayers may face a phaseout of itemized deductions. If your adjusted gross income (AGI) exceeds a certain threshold, your allowable itemized deductions may be reduced, which can limit the effectiveness of bunching deductions.

We recommend reviewing your anticipated deductible expenses for 2025 and 2026 to determine if bunching could be advantageous for you.

Beers, Hamerman, Cohen & Burger, PC would like to wish you and your family a very Happy Thanksgiving. Both offices will close early on Wednesday November 26th and resume normal business orders on Monday December 1st.

Connecticut residents now have access to a groundbreaking student loan reimbursement program designed to ease the financial burden faced by many college graduates. As of January 1, 2025, eligible participants may receive up to $5,000 per year for a maximum of four years, totaling up to $20,000 in student loan forgiveness. The program is funded with $6 million in the current budget cycle and awards are being distributed on a first-come, first-served basis.

This initiative—led by legislative efforts in Hartford—marks the first program of its kind in the country and reflects a collaborative, bipartisan commitment to strengthening the state’s workforce and economy.

Eligibility Requirements

The Office of Higher Education (OHE) may approve applicants who meet the following criteria:

• Educational Requirement
  Graduated from a Connecticut public or private college or university with a bachelor’s or associate degree, or earned an occupational/professional license or certificate. Individuals who left a Connecticut institution in good standing and received a hardship waiver from OHE may also qualify.
• Residency
  Must have been a Connecticut resident for at least five years.
• Income Qualifications
  • Single filers: Connecticut adjusted gross income of $125,000 or less and must file as unmarried.
  • Married or head-of-household filers: Connecticut adjusted gross income of $175,000 or less and must file as head of household, married filing jointly, or surviving spouse.
• Loan Status
  Must have an outstanding student loan balance and have made payments in 2024 toward one or more of the following:
  Federal Direct Loans, Federal Direct PLUS Loans, Federal Perkins Loans, CHESLA loans, other state-sponsored student loans, or private student loans.
• Service Requirement
  Must have completed at least 50 volunteer hours after January 1, 2024, at a Connecticut nonprofit registered with the Department of Consumer Protection, a municipal government, a nonprofit Board of Directors, or through military service.

This reimbursement program represents an important investment in Connecticut’s future by supporting graduates who contribute to the local community and economy.

For more information: https://portal.ct.gov/ohe?language=en_US