Be on the alert   

While many Americans are waiting to receive the federal Economic Impact (Stimulus) Payments, scammers are hard at work targeting individuals and preparers to get to the money first. We caution everyone to be alert to attempts by scammers to get bank account information. Government agencies of any kind, such as the IRS, the Vermont Department of Taxes, and the Social Security Administration, never contact people for their account numbers. If you receive a phone call like this, hang up. Email? Delete. Do not engage or respond in any way. The IRS has information on these newest scams. 

Some face coverings are exempt   

Because of heightened awareness about the use of face coverings, below is a quick summary of Sales and Use Tax as it relates to the various types of coverings.  

• N95 respirators and surgical masks are exempt from sales and use tax under 32 V.S.A. § 9741(2) because these items are therapeutic in nature, not normally used by people who aren't ill or injured, and are not capable of repeated usage. Although in these unusual times these items are becoming more routinely used by the general population, they are still exempt from tax.
• Scarves are exempt because they qualify as clothing under the law.
• Breathing masks and face shields are taxable under 32 V.S.A. § 9741(45). Although clothing is exempt from sales tax, protective equipment is taxable, because it is typically used in nonmedical settings, such as manufacturing and cleaning.
• Handkerchiefs are also taxable because they qualify as taxable "clothing accessories or equipment:" under Vermont law.

 

  See our fact sheet, General Guidelines on Sales Tax: What is Taxable and Exempt? 

Considered "day care"  

It remains to to be seen whether many day camps will be open this summer. For parents and legal guardians claiming the Child and Dependent Care Credit, the cost of sending a child under 13 years of age to a day camp may be deductible as a work-related child care expense. The purpose of the care must be to enable a parent or legal guardian to work or look for work. Taxpayers should save tuition receipts as proof if asked. See IRS Publication 503.