A tax warning for some state retirees

A tax error could be affecting retirees in the state (WFSB)

It's tax season and if you're a Connecticut retiree, there’s a tax warning.

Hundreds of people have been wrongly coded on their tax forms.

Channel 3 started checking into this after a viewer reached out about the mistake that could have cost him $4,000.

Bill Longton has been retired for the past four years. He said he has never had a problem with his tax forms, until this year.

“When this came out it was immediate, we need to get this corrected before there's a problem,” Longton said.

He was a corrections officer for 20 years, and noticed the distribution code on his 1099 tax form said “1” when it was supposed to say “2.”

It may look like a small mistake, but it could have caused him to dish out big bucks when filing his taxes this year.

“If we filed in the way it is, under this distribution code, we would be stocked with a 10 percent penalty on our gross income but I don't want to give anyone thousands of extra dollars just because someone put a wrong number in a box,” Longton said.

He said that would have amounted to about $4,000.

The Office of the State Comptroller said the state automated its retiree payroll and tax form administration last month, which serves more than 60,000 state and town retirees.

When the office did its own internal audit, they found the coding was wrong for about 318 retirees.

It also found that more than 2,500 retirees were coded correctly but based on their age, need to file another form, 5329, when they submit their 2017 tax forms.

If they don't, they pay back 10 percent to the government.

The state says they've recognized the problem.

Now, corrected tax forms with the right distribution code will be mailed out to the more than 300 retirees.

As for the 2,500 others, they have to fill out and submit form 5329 with their taxes this year.

The state also put this information on their website and you can also download that form as well.

For more information, click here.

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