Filing your Vermont tax return for 2016 may seem challenging, especially if you haven’t done it before or are revisiting prior years. Whether you're an individual taxpayer, a sole proprietor, or a small business owner, this guide will help you understand the process and what forms, deadlines, and requirements you must know. If you missed the original filing deadline or owe tax for 2016, there's still time to take action and avoid further penalties or interest.
This step-by-step guide will explain who must file a Vermont income tax return, how to complete the correct forms, and what to include with your submission. It also outlines how to report your taxable income, calculate your individual income tax, and claim any deductions or credits you may be eligible for. You'll also learn how to request an extension, make a payment, and track your refund or tax statement online or by mail.
Whether you're filing for yourself or on behalf of someone else—such as older adults or part-year residents—this resource is designed to help you meet your obligations for the 2016 tax year. Understanding your federal income tax return is key, as much of the information used to file your Vermont return is based on data from your federal forms. With the right instructions and accurate documentation, filing your income tax return for a prior year doesn’t have to be difficult.
You must file a 2016 Vermont tax return if you meet the federal income tax return requirement and your income or residency status triggers Vermont’s filing thresholds. The state uses your federal return as the starting point for calculating individual income tax, so filing both is essential for compliance.
To determine whether you're required to file a Vermont tax return for the 2016 tax year, review the following criteria:
This is the foundation for Vermont filing. If the IRS requires you to file a federal return, you may also have to file with the state, depending on your income and residency.
These requirements apply to calendar year filers and fiscal year filers alike. Even if you previously believed your income was too low, you may still need to file if you are eligible for Vermont-specific tax credits, such as the earned income tax credit or property-related rebates. Filing also ensures accurate reporting of estimated tax payments or withheld amounts by your employer, which may entitle you to a refund even if you do not owe tax.
For calendar year filers, the original filing deadline for the 2016 Vermont income tax return was April 18, 2017. This date aligned with the federal income tax deadline and applied to individual filers and small business owners. Understanding the due date is important because penalties and interest accrue immediately after this deadline unless you qualify for an extension or grace period.
Vermont offered a 60-day grace period for 2016 returns. You avoided the late filing penalty by filing by June 17, 2017. After the 60th day, the state imposed a flat $50 late filing penalty. In addition to the penalty, interest began accruing on any unpaid tax starting from the original due date, regardless of when you filed.
If you didn’t file or pay by the deadlines, penalties for late payment may still apply. However, if you are filing now for prior years and you qualify for a refund, the state may waive penalties, though interest on late refunds is not guaranteed. Fiscal year filers must follow deadlines based on their fiscal year end, and the same penalty and interest structure applies.
The primary form for filing a 2016 Vermont tax return is Form IN-111. All individual income tax filers must complete this form, including full-year, part-year, and nonresident taxpayers. Your Vermont taxable income and any applicable credits or deductions are reported here.
Be sure to use the correct version of each form for the 2016 tax year. Filing with current-year forms for prior years will result in processing delays or rejection. You can request older forms directly from the Vermont Department of Taxes or download them from the state’s website.
Filing your 2016 Vermont tax return begins with preparation. Vermont bases much of its return on your federal income tax return, so completing that first is essential.
Before starting, collect all necessary records:
Vermont’s Form IN-111 relies on figures from your federal return, such as adjusted gross income. You’ll transfer values related to income, deductions, and credits from your federal income tax return to the Vermont form.
Provide accurate personal information, including name, address, and Social Security number. Choose the correct filing status and ensure it matches your federal return. Report your total income, calculate Vermont taxable income, and determine your individual income tax liability. You’ll also report any Vermont tax withheld by your employer.
Suppose you’re eligible for Vermont tax credits, such as earned or out-of-state tax credits; complete Schedule IN-112. If you have complex income or deductions, include Schedule IN-113 or IN-155, as applicable.
Use Vermont’s 2016 tax tables to determine the amount you owe or your expected refund. Subtract eligible credits and estimated tax payments to finalize your return. If you owe tax, include payment with your return or use Vermont’s online payment portal. Review all entries, double-check your math, and ensure that required signatures are included before you file.
Although 2016 tax year returns can no longer be e-filed through commercial tax software, Vermont still recommends using the myVTax portal for specific follow-up actions like payment, refund tracking, and extension requests. For most 2016 Vermont tax return submissions, paper filing is required.
If you are filing your 2016 return now, complete Form IN-111 and any applicable schedules. Mail your return to the appropriate address based on whether you owe tax or expect a refund.
If you're submitting a payment, include your check or money order and attach all necessary forms and documents. Keep a copy of everything for your records.
While e-filing was available in 2016, it's now limited to current-year returns. If you filed electronically in 2016 and need a copy, you can request prior-year transcripts or tax statements through myVTax.
If you owe tax on your 2016 Vermont income tax return, there are several ways to pay. The most secure and convenient option is to pay online using Vermont’s myVTax system. If you're mailing your return, you may also include a check.
If you're making a payment separately from filing your tax return (such as after an IRS notice or payment plan request), use Form IN-116—Income Tax Payment Voucher for prior years. This form ensures your payment is correctly applied.
Payments must be timely to avoid interest or penalties. If you're paying now for a 2016 liability, interest began accruing from the original due date of April 18, 2017.
If you filed a 2016 Vermont tax return and are expecting a refund, or want to check the status of a balance due, Vermont’s myVTax portal provides secure and convenient access.
Visit www.myvtaxmyVTax.vermont.gov. You will need:
Typically, the IRS processed refunds for electronically filed 2016 returns (if submitted before the cutoff) in 2–3 weeks. Paper returns take longer, usually 6–8 weeks, and may take longer now because they are for a prior year.
Use the same portal to view any outstanding balance, submit payment, or request a payment arrangement. You may also receive a tax statement by mail if additional amounts are owed.
If you have recently mailed your return, please allow several weeks for it to be processed. Delays are familiar with older tax filings, especially those mailed close to statute deadlines.
You can file an amended return if you discover an error after filing your 2016 Vermont tax return. This may be necessary if you omitted income, claimed incorrect deductions or credits, or need to reflect a change from your federal income tax return.
To amend your return, complete a new Form IN-111 for 2016 and write “Amended” at the top. Include any updated supporting schedules (such as IN-112 or IN-113) and explain the changes. If the amendment is due to a correction on your federal income tax return, include a copy of the amended federal return or IRS adjustment notice.
Amended returns for 2016 must be filed within three years of the original due date (April 18, 2017) or two years of the tax payment date, whichever iyou are eligible for a refund, please act promptly to ensure you do not misstly to ensure you do not miss the statute of limitations.
An accurate income tax return reduces the risk of delays, penalties, or unexpected tax notices. Below are common mistakes that taxpayers make when filing for prior years:
Double-checking your return for these errors before submitting it can save you time, reduce stress, and help ensure your filing is accepted.
Before submitting your 2016 Vermont tax return, use this checklist to confirm that all required items are included and accurate:
Taking time to complete this checklist will help you file a correct and complete return, avoid penalties, and receive your refund faster—if one is due.
If you missed the filing deadline on April 18, 2017, Vermont allowed a 60-day grace period. After that date, a $50 late filing penalty and interest on unpaid tax were applied. You may still file for prior years, mainly if you are owed a refund or need to claim a credit. Complete your federal income tax return before submitting your Vermont income tax return.
Yes, Vermont accepts late-filed individual income tax returns for prior years. Interest and penalties will apply from the original due date if you owe tax. To claim a refund, you must file within three years of the due date. Include all required forms and your completed federal income tax return to ensure proper processing of your state return.
You may qualify for several Vermont tax credits, including the earned income tax credit, property tax adjustment, or a credit for taxes paid to another state. Standard deductions include business expenses, retirement contributions, or rental costs. Some federal deductions must be added to your Vermont taxable income, so review Form IN-155 closely. Supporting documents may be required to verify eligibility for any credits claimed.
To request an extension for 2016, you should have filed Form IN-151 by the original due date of April 18, 2017. An extension allows you more time to file your Vermont tax return but does not extend the time to pay. Penalties and interest apply if you didn’t pay your estimated tax by the due date. Always submit estimated payments with your extension request to minimize additional charges.
If you cannot pay your tax liability for 2016, you should still file your return to avoid late-filing penalties. Vermont allows taxpayers to request a payment plan for outstanding income tax balances. Interest will accrue from the original due date, and penalties may apply. Use Form IN-116 or pay online through myVTax. Promptly contacting the Department of Taxes can help you avoid enforcement actions.
Yes, older adults may be eligible for Vermont tax credits such as the property tax adjustment or renter rebate. These benefits are claimed using forms like HS-122 or PR-141. Eligibility is typically based on income, age, and housing status. Be sure to include any required documentation with your tax return. Even if you owe no tax, filing may help you receive these credits or a refund.
Calendar year filers report income based on the standard January 1 to December 31 period. Most individuals use this method for both their federal and Vermont tax returns. Fiscal year filers, such as some businesses, use a different 12-month period for reporting. Vermont requires you to indicate your fiscal year dates on your income tax return and to follow applicable deadlines based on that custom tax year.