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February 1 Due Date for Current Use
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Forest Management Activity Reports due February 1
Property owners with forest land enrolled in the Current Use Program must submit their Forest Management Activity Reports to the Current Use Program by February 1. Use
Form FMR-318, Forest Management Activity Report.
Please note: sugaring activity on enrolled forest land must be reported. The form now includes space for reporting the number of taps producing sap in the previous year. Find instructions
here.
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Income Tax Season News
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Ready for income tax season? So Are We!
The 2020 federal and Vermont tax season officially begins on Monday, January 27. The Department of Taxes has personal income tax forms and instructions available to download at
tax.vermont.gov. To order paper forms and the 2019 Income Tax Return Booklet, visit our
website.
Do you qualify to fill your taxes for free? Free File enables low- to moderate-income taxpayers to use name brand online tax filing software for free. In 2019, 65% of Vermont taxpayers qualified to use Free File, but less than 5% of those taxpayers used Free File to file their income taxes. Chances are very good that if your 2019 AGI is $69,000 or less, you meet the income criteria of one or more Free File vendors. See our Free File page for a list of vendors that are accepting federal and Vermont Free File returns.
Tell me again ... what is use tax?
When a seller does not charge the buyer Vermont Sales Tax on an item taxable in Vermont, the buyer must pay Vermont Use Tax to the Department of Taxes. Taxable items sold over the internet, by mail-order, by phone, or bought out-of-state and used in Vermont generally qualify. File and pay use tax on Form IN-111, the Vermont Income Tax Return.
Only the name has changed for the "Property Tax Adjustment"
Beginning last July, the "Property Tax Adjustment" changed to the "Property Tax Credit." The change will appear in the
2019 HS-122, renamed the "Vermont Homestead AND Property Tax Credit Claim."
Income of a spouse/civil union partner as part of household income
When completing Schedule HI-144, Household Income, you do not have to include the income of your spouse or civil union partner if you are legally separated or divorced by court order (as long as this person is not living in the same home with you). A change in the law passed during the 2019 Legislative Session also allows you to exclude the income of a spouse or civil union partner if you have a court-ordered restraining order in place against this person.
New how-to guide for completing a Vermont Homestead Declaration in myVTax
The new myVTax guide,
How to File a Homestead Declaration or Homestead Declaration & Property Tax Credit Claim, takes filers step by step through the process of completing it online. Whether or not you claim a Property Tax Credit for your Vermont domicile, filing the Vermont Homestead Declaration is required by April 15 for all owners of a Vermont homestead. Get more information
here.
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Filing Tips
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Before you begin completing your income tax return, consider the following: Have your received your Form(s) W-2 and 1099 from employers and sources of income? We recommend you do not file without them in hand.
Before you submit your income tax return, double check the following items: 1) Are Social Security Numbers correct? 2) Is your mailing address up to date? 3) Is your math accurate? 4) Are you attaching all schedules and supporting documents? 5) Have you signed all forms and schedules?
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Focus on Personal Income Tax
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Refundable and nonrefundable tax credits: what's the difference?
A refundable tax credit can reduce your tax liability to below zero. If the amount of a refundable tax credit is more than the amount of taxes due, the difference will be given back to you as a tax refund. If you are already owed a tax refund, the refundable credit will be added to increase the amount of your refund.
Unlike a refundable tax credit, a nonrefundable credit cannot reduce a tax balance beyond zero. With the exception of the federal Adoption Credit, any unused portion of a nonrefundable tax credit will expire in the year the credit is claimed and cannot be carried over.
Find definitions for these and other tax terms in the IRS and Vermont tax glossaries.
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Schedule IN-112, Part I, Line 10, Medical Expense Deduction
Taxpayers will be able to deduct the amount of their itemized deduction for medical expenses taken at the federal level, minus the amount of the Vermont standard deduction and personal exemptions. Certain recurring monthly payments or entrance fees to retirement communities are not deductible. See the worksheet in the instructions for Form IN-112.
Schedule IN-112, Part I, Line 11, Social Security Benefits Exemption
This exemption reduces tax liabilities mainly for lower- and middle-income Vermonters who are retired or disabled. Depending on filing status and income, it excludes from taxable income all or part of taxable Social Security benefits reported on the federal Form 1040, U.S. Individual Income Tax Return, which are included in federal Adjusted Gross Income (AGI). The exemption reduces a taxpayer's Vermont taxable income before state tax rates are applied.
Schedule R, Tax Credit for Elderly/Disabled
A tax credit is available to provide financial assistance to elderly or permanently disabled persons. A person who qualifies for the federal Credit for the Elderly or the Disabled also qualifies for the Vermont credit, which is 24% of the federal credit.
For more information, see the instructions for Line 18 on Vermont Form IN-111.
Form IN-111, Line 11, Vermont Charitable Contribution Credit
This tax credit is equal to 5% of the first $20,000 of contributions to charities eligible under federal law at 26 U.S.C. ยง 170 (See IRS Publication 526). The Department may ask you to provide supporting documentation for each contribution.
Schedule IN-112, Part II, Line 1, Low Income Child & Dependent Care Credit
If you are eligible for the federal Child and Dependent Care Credit, you are eligible for the Vermont credit if you 1) meet Vermont's AGI requirements and 2) use a daycare provider accredited in Vermont. The Vermont credit is 50% of the federal credit and is a refundable credit. If you take this credit, you are not eligible to take the Credit for Child and Dependent Care Expenses.
Schedule IN-112, Part II, Line 3, Earned Income Tax Credit
The Earned Income Tax Credit (EITC) is a benefit for working people with low to moderate incomes. To qualify, you must meet certain requirements for federal EITC and file a Form 1040, U.S. Individual Income Tax Return, even if you do not owe any tax or are not required to file.
Schedule IN-119, Part I, Line 8, Credit for Child & Dependent Care Expenses
If you are eligible for the federal Credit for Child and Dependent Care Expenses, you qualify for the Vermont credit. The credit is 24% of the federal credit and is a nonrefundable credit. If you take this credit, you are not eligible for the Low Income Child & Dependent Care Credit.
Schedule IN-119, Part II, Line 1, Vermont Higher Education Investment 529 Plan (VHEIP) Credit
The purpose of this tax credit is to encourage saving for post-secondary education expenses. The investment must be in a 529 plan administered by the Vermont Student Assistance Corporation. See Technical Bulletin TB-66 for more information about claiming this tax credit.
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Land Gain Tax Change
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New definition for "land" subject to Land Gains Tax
Effective with returns filed after Jan. 1, 2020,
Act 71 of the 2019 Legislative Session changed the definition of "land" subject to the Land Gains Tax.
Under the revised definition, Vermont land is only subject to the tax when it has been purchased and subdivided by the transferor within six years prior to the sale or exchange of the land. "Subdivision" means a tract or tracts of land that have been partitioned or divided for the purpose of sale or transfer by the person who owns or controls the land. Subdivision occurs when the first lot is transferred from the transferor to the transferee or a plat, plan, or deed is filed in the town records, whichever occurs first. The exemption for transfer of land in a Vermont neighborhood or neighborhood development area has been expanded to include a downtown development district, a village center, a growth center, or a new town center development district. Learn more here.
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New myVTax Features for Landlords
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myVTax: new features for landlords
We have two new features for filing Landlord Certificates! Now you can set up your account to auto-fill the landlord information on manually-generated Landlord Certificates.
Begin by logging in to your myVTax account. Under the I Want To section, click Update Return Signature. Complete the information requested, and your name and address will automatically populate under the General Property Information section on the Landlord Certificate. You will still need to fill out the specific rental unit information for each submission. To change or delete the information, simply go back to Update Return Signature.
The other feature is bulk uploading. This allows you to fill out all of your landlord certificates in a single spreadsheet and then upload them in a single submission. Please see the Department's Landlord Certificate flyer explaining the benefits of bulk filing and the Bulk Upload Guide for Landlord Certificates for detailed instructions. If you have any questions, please email us at tax.business@vermont.gov or call us (802) 828-2551.
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Fact Sheet and Guide Updates
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These publications have been updated for 2020:
- FS-1037 The Vermont Renter Rebate Claim
- FS-1038 The Vermont Property Tax Credit
- FS-1051 The Vermont Homestead Declaration
- FS-1057 Vermont Schedule HI-144: Determining Household Income
- FS-1212 Vermont Sales and Use Tax for Veterinary Medicine
- GB-1210 2020 Vermont Withholding Instructions, Tables, and Charts
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New Property Tax Infographic
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Comparison of Vermont's Property Taxes to Property Taxes in Peer States
This new infographic illustrates the median tax rate in the lowest and highest tax rate counties in Vermont, compared with New York and the rest of New England. It also summarizes property tax credits that are offered in the same states.
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Improved Tax Calendar
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Looking for a Vermont tax due date?
Check out our online Tax Calendar!
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Careers at the Department of Taxes
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Help wanted!
Can you help spread the word about our
Careers page? We update the page continuously with the latest job openings at the Department. Right now there are several openings in our Compliance and Field Audit divisions, as well as a need for seasonal temporary workers now through May.
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We're on Social Media
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Looking for the latest Vermont tax news?
Follow us on Facebook and Twitter!
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When You Have a Question
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Taxpayers with questions may reach the Department at 802-828-2865, or (toll-free in Vermont)
1-866-828-2865. The Individual Income Tax Section phone number is answered Monday, Tuesday, Thursday, and Friday, 7:45AM-4:30PM. In order to focus on processing returns, we do not take calls on Wednesdays.
A Taxpayer Service window is located on the first floor of the Vermont Department of Taxes Building, 133 State Street, Montpelier. The window is open Monday-Friday, 7:45AM-4:30PM. The Vermont Department of Taxes is closed on state holidays.
Many answers can be found on our website. At the home page, simply enter your search word or phrase in the search window.
We are here to help.
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