Individuals
 February 12, 2019
2019 Tax Season Updatetaxseason
2019 tax season is now open  
Filing season opened on Jan. 28, and there are many changes to Vermont taxes for 2019. The Department of Taxes has information and resources to help you understand the changes for the 2019 tax season and file your taxes. Check out these resources:
  
Taxpayers will see a number of changes to the Vermont tax forms this year. Many of the changes come as a result of Act 11, Vermont's response to the 2017 federal Tax Cuts and Jobs Act (TCJA), which became law during the 2018 special legislative session. Read about the new Vermont standard deduction, personal exemption, tax-deductible charitable contribution, Social Security Benefit Exemption, and more in the press release and 2019 Tax Season Update:
 
Filing Your Taxes
Find a tax preparer
Looking for a tax preparer? There are various types of tax return preparers, including certified public accountants, enrolled agents, attorneys, and many others who don't have a professional credential. See IRS tips  about how to look for a tax preparer.
 
Free tax assistance
If you can't afford a tax preparer, there is free help available for qualified taxpayers. Here are free programs available in Vermont:
  • Free File
    Free File puts accurate electronic tax filing into the hands of people who have difficulty paying for online software. Free File is offered to eligible Vermonters by brand-name online services. In 2018, about 65% of Vermont taxpayers qualified to e-file their federal and state taxes for free through Free File. Are you eligible? See if you meet the eligibility requirements from our Free File vendors.
  • Volunteer IncomeTax Assistance (VITA) and Tax counseling for the Elderly (TCE) 
    and AARP Tax-Aide Program
    Taxpayers with low to moderate incomes and elderly taxpayers may take advantage of free assistance through the IRS Volunteer Income Tax Assistance and Tax Counseling for the Elderly and the AARP Foundation Tax-Aide Program.
  • MyFreeTaxes Partnership
    MyFreeTaxes Partnership provides free state and federal tax preparation and filing assistance for qualified individuals.  

Important Remindersreminders
Save donation receipts
Vermont's Charitable Contribution Tax Credit was passed by the legislature in 2018. The credit is a 5% credit of the first $20,000 in eligible charitable contributions made during the tax year. To claim the credit, be sure that donations being reported were to eligible charitable organizations as defined by federal law. Save all receipts, but don't send them with the IN-111. Taxpayers may be asked for proof of the contributions. The maximum charitible contribution credit toward reducing a taxpayer's tax liability is $1000.
 
Do you owe Use Tax?
If you purchased taxable items in a state with a lower, or no, sales tax, or you made purchases online in 2018, you may owe Vermont Use Tax. Vermont's six percent use tax is due for taxable purchases where Vermont Sales tax was not collected. If collected at a lower rate than Vermont's (such as in Maine), only the difference is owed. Six percent use tax is owed for online taxable purchases when:
  • The seller wasn't obligated to--- and didn't--- charge Vermont sales tax.
  • The online sales service, e.g. Ebay, didn't charge Vermont sales tax.
See our fact sheet, Vermont Use Tax for Individuals, for an explanation of use tax, and how to report it on the IN-111 tax return.

Homestead Declaration is required
Every Vermont homeowner whose home meets the definition of a Vermont homestead must file a Homestead Declaration annually by April 15. Declaring a property as a homestead ensures that property tax will be assessed at the residential rate, rather than the nonresidential rate. The Homestead Declaration is due April 15 even if the homeowner requests an extension to file income taxes. File the Homestead Declaration if you are a Vermont resident, and you own and occupy your home as your domicile as of April 1, 2019. Filing is easy, and may be done electronically for free under the Individuals tab on myVTax. The fillable Homestead Declaration and Property Tax Adjustment paper forms can be downloaded from our website.


Tips to Avoid Errors on Returnstips
DIY tax preparation and avoiding errors on returns
There is nothing wrong with filing one's own tax return. In fact, in 2018, nearly 54 million Americans did just that. DIY tax filing is more likely to have errors that delay processing and refunds. A tax return is only considered timely if properly signed and submitted.
 
Avoid these common mistakes made by DIY filers:
1. Wrong or missing Social Security Numbers
2. Names misspelled or don't match name on Social Security card
3. Using wrong filing status (for example, married vs. Head of Household)
4. Math error
5. Errors in figuring tax credits or deductions
6. Incorrect bank account numbers
7. Forms not signed (if married filing jointly, make sure both spouses sign the form)
8. Electronic filing PIN errors
9. Health Care reporting errors


It's Time to Check 2019 Withholdingcheck
Completing the W-4VT is important for 2019
If you reduced your withholding some time in 2018 as a result of the Tax Cuts and Jobs Act of 2017, you may have too little withheld in 2019. Now it is more important than ever for employees to complete both the federal Form W-4 and the new, updated Vermont Form W-4VT. The number of allowances a person claims against federal withholding can be different than what should be claimed for Vermont. To avoid underpaying, use the IRS Withholding Calculator to estimate your withholding for this year. If there's a change, give your employer a new 2019 Form W-4.
 
Form W-4VT has been updated for 2019. We strongly suggest taxpayers also submit a new 2019 Form W-4VT to have the correct amount tax withheld for Vermont. Be sure that tax withholding is enough to avoid an unpleasant tax liability come filing season.


Mark Your Calendarcapitol
Capitol for a Day in Orange County
Gov. Phil Scott's Capitol for a Day will be in Orange County on Tuesday, February 26. Officials from the Department of Taxes and other agencies will hold a roundtable discussion. Look for an announcement with more details in the coming days.

When You Have a QuestionContactUs
Businesses with questions may reach the Department at 802-828-2505 (option 2). This phone number for businesses is answered Monday, Tuesday, Thursday, Friday 7:45AM-4:30PM. We do not take calls on Wednesdays.
  
For questions about Corporate or Business Entity Income Tax, email  tax.corporate@vermont.gov.
  
For questions about Sales and Use Tax, Meals and Rooms Tax, Local Option Tax, Withholding, or for support with myVTax, email tax.business@vermont.gov.
  
We are here to help.

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