Filing your 2015 Vermont tax return accurately with the Vermont Department of Taxes ensures you pay no more than necessary and claim every credit you qualify for. Whether you’re reporting income on your federal income tax return or claiming the renter rebate or Vermont homestead declaration, this guide helps you navigate each form, deadline, and step. From gathering W-2s and 1099s to choosing between free file e-filing or traditional paper filing, you’ll learn how to file, pay, and track your refund with confidence.

Vermont’s income tax rates and credits—such as the property tax credit claim and income tax paid to other states—can affect your total refund or balance due. We’ll explain how to calculate Vermont taxable income, apply credits, and use Form IN-111 and its schedules to report additions and subtractions correctly. Along the way, we’ll show you how to double-check your work, avoid common pitfalls, and meet every due date to steer clear of penalties and interest.

By the end of this guide, you’ll know exactly which forms to use, how to complete each section of your return, and where to file your paperwork or submit online. You’ll also find clear instructions on making payments via VTPay or check, requesting an extension, and tracking your refund through the Vermont Department’s online service. Let’s get started on filing your Vermont tax return for 2015.

Overview of Vermont State Income Tax for 2015

Who Needs to File

  • Full-Year Resident: Individuals domiciled in Vermont for the entire year of 2015 must file a state return if they are required to file a federal return and have Vermont income exceeding $100. Vermont residents report all income—wages, interest, dividends, and business earnings—on their state return.

  • Part-Year Resident: Taxpayers who moved into or out of Vermont during 2015 file as part-year residents. You report only the income earned while a resident, plus any Vermont-source income as a nonresident.

  • Nonresident: Nonresidents file a Vermont return if they have Vermont-source income exceeding $1,000 and must file a federal return. Common examples include rental income from Vermont property or business income from services performed in the state.

Income Thresholds and Federal Income Tax Return Requirement

All filers must first meet the federal income tax return requirement. If the IRS requires you to file a federal return, and you have Vermont income above the thresholds ($100 for residents, $1,000 for nonresidents), you’re on the hook for state filing. Use your federal AGI to calculate Vermont adjustments.

Filing Deadlines

Initial vs. Extended Due Dates

  • IN-111 (2015 return): Due April 18, 2016; extended to October 17, 2016, with a timely extension

  • IN-151 (extension request): Due April 18, 2016 (no extended deadline)

  • HS-122 (homestead declaration & property tax adjustment claim): Due April 18, 2016; extended to October 17, 2016

  • PR-141 (renter rebate claim): Due April 18, 2016; extended to October 17, 2016

Mailed returns are timely if received within three business days after the due date; e-filing counts as timely if submitted by midnight on the due date.

Key 2015 Changes

  • Minimum Tax Requirement: For taxpayers with federal AGI over $150,000, Vermont requires a minimum tax equal to 3 percent of your federal AGI (minus U.S. obligation interest) if that amount exceeds your regular state tax calculated from tables.

  • Updated Residency Definitions: Full-year, part-year, and nonresident definitions were clarified to match Vermont statutes, ensuring consistency in filing status between state and federal returns.

What Forms to Use

Individual Income-Tax Forms

  • IN-111 (2015 Vermont Income Tax Return): Use this form to report income, compute tax, and claim credits and payments for all individual filers.

  • IN-112 (VT Tax Adjustments and Credits): Attach when claiming state credits under the Vermont homestead declaration, property tax credit claim, or other adjustments.

  • IN-113 (Income Adjustment Calculations): Needed by part-year residents and nonresidents to apportion federal AGI and income.

  • IN-116 (Income Tax Payment Voucher): Include with paper returns when sending payments by check or money order.

  • IN-151 (Application for Extension of Time to File): To extend the filing due date, file by April 18, 2016; it does not extend the payment due date.

  • IN-153 (Capital Gain Exclusion Calculation): Used to exclude up to 40 percent of certain capital gains.

Business Income-Tax Forms

  • BI-471 through BI-476: Select the appropriate business return based on entity type—partnerships, S-corporations, composite returns, or resident-only business returns.

  • CO-411 (Corporate Income Tax Return): For C-corporations and entities taxed as corporations.

  • K-1VT (Shareholder/Partner/Member Information): Issued by entities reporting distributive shares of income.

Where to Find Forms

All 2015 Vermont tax forms and instructions are available on the Vermont Department of Taxes website at https://tax.vermont.gov/forms/2015.

Step-by-Step Instructions to Complete Your Return

Step 1: Prepare to File

Gather everything you’ll need before starting: your completed 2015 federal income tax return (Form 1040, 1040A, or 1040EZ) with schedules; all W-2 and 1099 forms showing Vermont withholding; documentation for credits and deductions (homestead declaration, renter rebate, property tax credit claim); blank Vermont forms (IN-111, IN-112, IN-113, IN-116, IN-151, IN-153); and a copy of last year’s Vermont return for reference.

Step 2: Enter Taxpayer Information

On Form IN-111, fill in your full name(s), Social Security Number(s), mailing address, Vermont school district code, and 911 street address as of December 31, 2015. Check the box if you’re filing an amended return or reporting a deceased taxpayer.

Step 3: Select Your Filing Status

Choose the filing status that matches your federal return. Use the special status options provided on the form if you’re in a civil union or have a nonresident spouse with no Vermont income.

Step 4: Calculate Vermont Taxable Income

Transfer exemptions, federal AGI, and federal taxable income from your federal return. Then report required additions (non-Vermont obligations, bonus depreciation) and subtractions (interest from U.S. obligations, capital gains exclusions). The result is your Vermont taxable income.

Step 5: Compute Vermont Tax and Credits

Use the Vermont tax tables to find your base tax. If your federal AGI exceeds $150,000, calculate the 3 percent minimum tax (federal AGI minus U.S. interest) and enter whichever amount is higher. Next, apply credits: income tax paid to other states, homestead declaration, renter rebate, and report any use tax on out-of-state purchases.

Step 6: Determine Payments, Refunds, or Amount Due

Total your tax withholding, estimated payments, and refundable credits to see if you owe—or are owed—a refund. If you owe, calculate any late-payment penalties and interest. If you’re due a refund, choose direct deposit or apply the amount to next year’s tax.

Common Mistakes to Avoid

Forgetting to sign and date your return 

An unsigned or undated Form IN-111 will be considered incomplete by the Vermont Department of Taxes and can delay processing of your refund. Always double-check that both spouses sign joint returns before the April 18 due date or, if you’ve filed an extension, by October 17.

Omitting W-2s, 1099s, or required schedules

Leaving out your W-2 and 1099 statements or schedules IN-112 through IN-155 means Vermont can’t verify your withholding or credits. Attach all federal income tax return support documents, including the renter rebate (PR-141) and homestead declaration (HS-122), to avoid rejection.

Using the wrong school district code or filing status

Entering an incorrect school district code or misclassifying part-year resident status can lead to calculation errors in your taxable income. Refer to the Vermont tax tables and residency definitions before you submit to ensure your filing status matches your federal return.

Failing to report use tax on out-of-state and internet purchases 

Vermont requires you to report and pay use tax on tangible goods bought outside the state or online if no sales tax was collected. Underreporting use tax can trigger penalties and interest, so gather invoices or bank statements and complete Line 27 accurately.

Math errors when transferring figures from federal to state forms

Simple arithmetic mistakes—such as mistyping your federal AGI or exemptions—can throw off your entire Vermont tax calculation. Use e-filing software or proofread each line against your federal income tax return to minimize errors.

Overlooking the minimum-tax calculation for high-income filers

If your federal AGI exceeds $150,000, you must compare the standard Vermont tax table amount with a 3% minimum tax based on AGI minus U.S. obligation interest. Forgetting this step can understate your tax liability and result in assessments or late-payment interest.

How to File Your Return

Electronic Filing Options

  • Commercial Software or Tax Professional: Use reputable commercial tax preparation software or work with a qualified tax professional to e-file your 2015 Vermont return. These services guide you through each form—Form IN-111, schedules for homestead declaration and renter rebate, and any credits for income tax paid to other states—validate your entries, and transmit your return directly to the Vermont Department of Taxes. You’ll receive an immediate confirmation of receipt, helping you meet the April 18 due date and avoid late-filing penalties.

  • Free File Program: If your federal AGI falls below the income threshold, Vermont’s Free File program on the state Department of Taxes website lets you prepare and e-file at no cost. Free File software walks you through all federal and state forms, including the renter rebate and property tax credit claim, ensuring you report income tax paid accurately and claim every credit for which you qualify.

Paper Filing Requirements

  • Print original forms in blue or black ink and attach all required schedules, W-2s, and 1099s.

  • Include the Form IN-116 payment voucher if you owe taxes and any HS-122 homestead declaration or PR-141 renter rebate claim.

  • Mail returns with payment to:

Vermont Department of Taxes
PO Box 1779
Montpelier, VT 05601-1779

  • Mail returns without payment to:

Vermont Department of Taxes
PO Box 1881
Montpelier, VT 05601-1881
Mailed returns are timely if postmarked by April 18, 2016, or received within three business days thereafter.

Filing an Extension (Form IN-151)

Submit by April 18, 2016, for an automatic extension to October 17, 2016. Remember that any tax owed remains due by April 18 to avoid interest.

Small-Business Filing Notes

  • Sole Proprietors and Single-Member LLCs: Report business income on Form IN-111 with federal Schedule C data; attach IN-112, IN-113, or IN-153 as needed.

  • Partnerships, S-Corps, and C-Corps: File BI-471 with K-1VT for partners/shareholders; C-corporations use CO-411.

How to Make a Payment

Online Payments via VTPay

ACH debit has no service fee; credit and debit cards incur a 3 percent service fee.

Check or Money Order

Please include the payment voucher, ensure it is payable to “Vermont Department of Taxes,” and mail it as directed above.

Deadlines, Penalties & Interest

Full payment is due April 18, 2016, even with an extension.

  • Late payment penalty: 1 percent per month (max 25 percent)
  • Interest accrues from the original due date
  • Late filing penalty: $50 if more than 60 days late

Payment Plans & Enforcement Risks

File your return, pay what you can, then write to Compliance at PO Box 429, Montpelier, VT 05601-0429. Without a plan, collection actions (liens, garnishments, levies) may follow.

Estimated Payments for 2016

Quarterly payments (Form IN-114) are due April 18, June 15, September 15, and January 17 to avoid underpayment penalties.

How to Track Your Refund or Balance Due

Checking Refund Status Online

Use the “Check the Status of Your Return or Refund” tool on the Vermont Department’s website. You’ll need your SSN and exact refund amount. You can also call 802-828-2865 or toll-free at 866-828-2865.

Refund Processing Times

  • Electronic returns may take 6–8 weeks.

  • Paper returns may take 8–12 weeks. Peak-season filings may take longer if selected for review or if errors are found.

Refund Offsets & Injured Spouse Claims

Your refund may be reduced to cover outstanding state or federal debts, child support, or student loans. If you need to protect your share of a joint refund, file an injured spouse claim with a letter and Federal Form 8379 before filing.

Final Filing Checklist

Essential Documents and Attachments

  • IN-111 Return and Federal Return: Ensure your completed Vermont return and a copy of your federal return are ready.

  • W-2s, 1099s, and Supporting Forms: Include all withholding statements and schedules (IN-112 to IN-155, HS-122, and PR-141 if applicable).

Final Review

  • Verify Social Security Numbers, school district codes, and filing status: Ensure each Social Security Number matches your federal return and that you’ve entered the right code for your Vermont school district. An incorrect filing status or district code can lead to processing delays or miscalculated tax liability, so double-check these critical details before submission.

  • Double-check all math calculations and reported use tax: Carefully review each line where you transferred figures from your federal return, including exemptions, AGI, and taxable income. Confirm that any use tax on out-of-state or internet purchases is correctly reported on Line 27 to avoid underpayment penalties or interest.

  • Sign and date the return; both joint filers must sign: An unsigned or undated Form IN-111 is considered incomplete by the Vermont Department of Taxes and may be rejected. If you file jointly, both spouses or civil union partners must sign the return to validate it.

Payment or Refund Follow-Up

  • Include a payment voucher if owing: If you have a balance due, attach Form IN-116 with your check or money order payable to “Vermont Department of Taxes.” This ensures your payment is credited correctly and prevents additional late-payment fees.

  • Confirm mailing address or e-file submission: Verify that you’re sending returns with payment to PO Box 1779, Montpelier, VT 05601-1779, or without payment to PO Box 1881. If e-filing, keep the electronic confirmation receipt showing your return was received by the April 18 due date.

  • Track refund status online and follow up if delayed: Use the Vermont Department’s “Check the Status of Your Return or Refund” tool with your SSN and exact refund amount. If your refund hasn’t processed within the expected timeframe (6–8 weeks for e-filed returns, 8–12 weeks for paper), contact the Department to inquire about any offsets or processing issues.

Frequently Asked Questions

What if I missed the filing deadline for April 18, 2016?

If you miss your Vermont tax return's April 18, 2016, due date, you can still file up to 60 days late without a late-filing penalty. After 60 days, a $50 late-filing fee applies. Any unpaid income tax will accrue a 1% per month late-payment penalty and interest on unpaid tax. File promptly, pay what you owe, and consider free e-filing next year.

Can I e-file for free?

You can use Vermont’s Free File program to e-file your 2015 Vermont income tax return at no cost. The free file option on the Vermont Department website guides you through each form—IN-111, homestead declaration, renter rebate, and property tax credit claim—and ensures you report income tax paid accurately. Eligibility is based on federal income thresholds and follows IRS Free File criteria.

What are the most commonly missed deductions on Vermont returns?

Taxpayers often overlook the Vermont homestead credit, property tax credit claim, and credit for income tax paid to other states. Many also forget to exclude interest income from U.S. obligations or report use tax on out-of-state purchases. Double-check Schedule IN-112 for state credits and Form IN-153 for capital gains exclusions to maximize your refund and avoid underreporting.

How do I request an extension for my Vermont return?

To request more time, file Form IN-151 by the April 18 due date. This extends your filing deadline to October 17, 2016, but does not extend your payment due date. Any estimated tax owing must still be paid by April 18 to avoid interest and late-payment penalties. Keep your extension confirmation and review the free file e-filing option for next year’s extension.

Can I file jointly if I moved mid-year to or from Vermont?

Part-year residents who file a joint federal return can also file a joint Vermont return. Use Schedule IN-113 to allocate federal AGI and Vermont taxable income between residency periods. Both spouses must use the same residency status. This ensures you accurately report income, claim renter rebate or homestead declaration credits, and calculate your state income tax liability.

How do I report income from my small business or sole proprietorship?

Report sole proprietorship income on Form IN-111 using details from your federal Schedule C. Attach Schedule IN-112 for tax adjustments, the homestead declaration if you qualify, and Schedule IN-153 for capital gain exclusions. Part-year residents or nonresidents also need Schedule IN-113. Partnerships file BI-471 with K-1VT to report distributive shares, while corporations use CO-411 for income tax reporting.