HARTFORD, Conn. (AP) — Tax refunds are up, which is good news for Connecticut taxpayers but the drain on the state treasury will force more spending cuts.
Between July 1 when the state's budget year began and April 26, taxpayers received $827.8 million in refunds, up 18 percent from the same 10 months the previous year.
Department of Revenue Services Commissioner Kevin Sullivan says the higher refunds are due to inaccurate tax withholding, more taxpayers taking advantage of the new Earned Income Tax Credit and an early-year boom in the stock market that prompted some taxpayers to pay more in estimated taxes.
The state expects refunds will total more than $1 billion, about $70 million more than anticipated. Sullivan said that's adding to an already unbalanced budget that will force spending cuts.