March 27, 2019
Tax Season Reminderstaxseason 
The Department of Taxes has these reminders for businesses and nonprofits.
 
Your mailing address matters  
When submitting online returns, be sure to include your unit or suite number/letter on the second address line. We also need your 4-digit ZIP code extension in the ZIP code field.  An incorrectly formatted address may delay important correspondence and refunds.
 
Be sure to update your proper mailing address with your preparer, or he or she may assume it is the same as last year. An incorrect address may delay important correspondence.
 
Tax exemption for eligible Social Security recipients
In 2018, Vermont lawmakers created the Vermont Social Security Exemption, which fully or partially exempts Social Security income from taxation, based on filing status and Adjusted Gross Income (AGI).  See the worksheet on page 2 of the instructions for Schedule IN-112, Vermont Income Tax Adjustments and Credits, to see who qualifies for this exemption.     
 
When a taxpayer works in more than one state
A taxpayer who earns income from work in Vermont and also in another state should file a state tax return in each state. When a Vermont resident earns money working in another state, Vermont withholding should be calculated for the entire earnings, then reduced by the amount withheld in the other state or states. For work performed in a state with no income tax, the income should be treated as Vermont income for the purpose of withholding. See Technical Bulletin 23.

Extension Filing Deadlineextension
Filing an extension for Vermont personal income tax
If you are not ready to file and need more time, you may extend the deadline for up to six months to Oct. 15, 2019. To do this, you must file Form IN-151, Application for Extension of Time to File Form IN-111, on or before April 15. You may file online at myVTax.vermont.gov. Please note that you may only extend the filing date. You must pay any tax owed by April 15 to avoid penalty and interest. 

New Industry Guidanceindustry
Industry-specific guidance
Some industries operating in Vermont present unique tax situations specific to the the creation and sale of their products. We are building a webpage with information that clarifies and explains tax law and regulation as applied to specific industries. Currently, we have information for the Hemp and Cannabidiol (CBD) industry and for nonprofit organizations. We will be adding more information as it becomes available and more industries, so be sure to check the Industry page frequently.   

Sales & Use Tax Regulations UpdatedSUT
Updated sales and use regulations now available  
The Vermont Sales and Use Tax Regulations  have been updated as of Jan. 1, 2019. The new document incorporates changes made since 2010 in law or in how existing law is interpreted.  

e-Filing Required for Some Businessesefiling
Mandated e-filing  
Businesses are mandated to file electronically with the Department of Taxes through myVTax if: 1) they submit 25 or more W-2s or 1099s with form WHT-434, the Annual Withholding Reconciliation, 2) pay withholding tax on a semiweekly schedule, or 3) their payroll is filed by a CPA or payroll provider. For more information on withholding tax, scroll to "Filing Methods" on our Withholding page. 

Free Tax Filing for Low-Income Vermonters freefile
Why not Free File? 
More than half of Vermont taxpayers are eligible to use Free File to e-file their tax returns for free. Even so, less than three percent of eligible filers used Free File in 2018, and the Department wants to boost that number. Free File makes e-filing available to people who meet income, age, and eligibility requirements. Generally Vermonters with a federal adjusted gross income (AGI) of $66,000 or less, or who are members of the military, or who qualify for the Earned Income Tax Credit (EITC or EIC) may find one or more free commercial software products by visiting the Free File page. 

Tax Credit Lowers Health Care Premiumscaptive
Federal Federal Premium Tax Credit--- Update Your Status  
If you received the federal  Premium Tax Credit as an advance credit premium to help lower the cost of your monthly premiums, then you should be sure to report any change of income or household size to Vermont Health Connect. This helps ensure you receive the proper amount of tax credit. Learn more about the Premium Tax Credit.
  
Vermont Legal Aid provides more information about how to qualify for the Federal Premium Tax Credit by the April 15 tax deadline.  

Guidance for Veterans' Organizationsveterans
New fact Sheet for veterans' nonprofits    
A new fact sheet for nonprofit veterans' organizations,  Vermont Business Taxes and Your 501(c)(19) Organization, has been published to the website. The fact sheet covers what fraternal veterans' organizations need to now about Sales and Use Tax, Meals, Rooms and Alcohol tax, entertainment charges, and purchases made for resale. 

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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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