In 2018, over 350,000 Vermont taxpayers filed their state income tax returns, yet thousands lost money through late penalties, missed deductions, or delayed refunds. Filing your Vermont tax return correctly and on time is more than just a yearly obligation—it’s your safeguard against unnecessary costs and an opportunity to keep more of your income. Mistakes like overlooking deductions, forgetting to claim credits, or missing the due date can have real financial consequences.
This guide is designed for individuals and small business owners who want to handle the process confidently. Whether you are a full-year, part-year, or nonresident with Vermont income, understanding how to file your Vermont tax return is crucial. We will walk through every stage, from determining if you qualify to file to gathering essential documents and submitting the completed forms. Along the way, we’ll highlight Vermont-specific rules that differ from federal guidelines, explain how to claim valuable credits such as the property tax credit claim, and point out common errors that can delay your refund.
You’ll also see why filing early, filing electronically, and double-checking your information can save time, prevent penalties, and speed up your refund. Vermont’s Department of Taxes offers free tools that allow you to apply online, make payments, and track your refund—and we’ll show you how to make the most of them. Whether you owe a balance, expect a refund, or simply want to avoid costly mistakes, this article will give you a step-by-step roadmap for filing your 2018 Vermont return accurately and on time.
Before you begin gathering forms and calculating your payment amount, it’s essential to determine whether you must file a Vermont state income tax return. Filing when you are not required wastes time and effort, but failing to file when you should can lead to penalties, additional interest, and even collection actions from the Vermont Department of Taxes.
For the 2018 tax year, you must file if both of the following apply:
These thresholds differ depending on your residency status:
Your adjusted gross income (AGI) from your federal return will determine your starting point for Vermont taxes, but Vermont applies its deductions, exemptions, and credits. This means even if your federal tax liability is low or zero, you may still owe Vermont taxes or qualify for a refund. Certain conditions require filing even when income is low. For example, if Vermont tax was withheld from your paycheck, you may want to file to claim a refund.
You may also be required to file if you received unemployment benefits, retirement distributions, or income from investments. Failing to submit a return when you qualify to file can result in late filing penalties, additional interest, and the loss of a refund you are entitled to. Filing on time is not just about meeting the due date—it is about protecting your money and avoiding unnecessary fees.
The 2018 tax year brought several essential changes to Vermont’s income tax rules. These updates were designed to adapt the state’s system to federal changes under the Tax Cuts and Jobs Act while maintaining certain resident benefits. Understanding these changes is critical—overlooking them could mean paying more than necessary or missing out on money you qualify to claim.
While the federal government suspended personal exemptions in 2018, Vermont retained its own. Taxpayers can claim a $4,150 personal exemption for themselves, their spouse, and each qualifying dependent. This significantly reduces taxable income for families and households with dependents.
The state also set its standard deduction amounts:
Vermont introduced a 5% non-refundable credit for charitable donations, up to a $20,000 contribution limit. This is in addition to any federal deduction, providing extra savings for eligible taxpayers.
Marginal tax rates were reduced across most income brackets, and the Vermont Earned Income Tax Credit increased from 32% to 36% of the federal amount. Income-eligible Social Security recipients could also be exempt from more benefits from state taxation.
These changes mean taxpayers have more opportunities to lower their tax liability, but only if they apply the correct Vermont rules. Using outdated federal figures or skipping Vermont-specific credits can result in overpaying. Filing with attention to these updates ensures you keep every dollar you are entitled to.
Filing your Vermont tax return correctly begins with having the proper forms. Using the wrong form or missing a required schedule can delay processing, result in rejected returns, or even incur penalties if your payment amount is not recorded on time. The Vermont Department of Taxes provides all necessary documents online, so you can download and complete them before the deadline.
All forms and instructions can be downloaded from the Vermont Department’s website. You can also apply online using the myVTax portal, which provides built-in prompts to ensure the correct forms are completed.
Details to Prepare Before Filling Forms
Starting with the correct forms and ensuring every required schedule is included will save time and reduce the risk of errors. Even a missing signature or page can slow processing and delay a refund.
Filing your 2018 Vermont tax return is easier when you break it into clear, manageable steps. Following this sequence can avoid costly mistakes, help you meet the deadline, and maximize your deductions and credits.
Before you start filling out any form, collect all necessary documents. Missing paperwork is a common reason for delayed refunds and rejected returns.
Vermont’s tax calculation starts with your federal adjusted gross income (AGI). Completing your federal return ensures your Vermont return is accurate and uses the correct income base.
On the form’s header section, enter your details, including:
Use the Vermont Tax Tables or Rate Schedules to find the correct tax amount based on your taxable income. This step determines your preliminary tax liability before applying credits.
Common Vermont credits include:
Before you submit:
Submitting an accurate return the first time prevents penalties, avoids additional interest, and speeds up refund processing. Even simple math errors can lead to delays of several weeks, so review everything carefully before filing.
Submitting your Vermont tax return correctly and on time is as important as preparing it accurately. Choosing the proper filing method can determine how quickly your return is processed and how soon you receive your refund.
The Vermont Department of Taxes strongly encourages taxpayers to use the myVTax online portal. Filing electronically offers several advantages:
You can apply online at myVTax.vermont.gov. The system will guide you step-by-step and prompt you for any missing details before submission.
If you prefer to mail your tax return, make sure you send it to the correct address:
For Refunds or Zero Balance Due:
Vermont Department of Taxes
PO Box 1881
Montpelier, VT 05601-1881
For Balance Due (Payment Enclosed):
Vermont Department of Taxes
PO Box 1779
Montpelier, VT 05601-1779
When mailing, include all required forms and schedules and your payment amount, if applicable. Write your Social Security number on your check or money order to ensure proper credit.
To avoid penalties and additional interest, you must file by the due date:
If you miss the filing date, penalties apply even if you are owed a refund. Filing electronically can help you avoid timing issues and provide a faster, more reliable way to meet Vermont’s tax deadlines.
If your Vermont tax return shows that you owe a balance, paying it in full by the due date is the best way to avoid penalties, interest, and additional costs. The Vermont Department of Taxes offers multiple ways to make your payment, giving taxpayers flexibility in settling their accounts.
The fastest and most secure way to pay is through the myVTax online portal. You can choose:
If you cannot pay the full amount by the due date, you may request an installment agreement. This allows you to make monthly payments until your balance is cleared. Vermont requires a minimum monthly payment amount based on your total balance and ability to pay.
If you already have an existing installment agreement, contact the Vermont Department immediately to discuss whether it can be modified to include your current year’s balance. Missing payments under a contract may result in cancellation and collection action.
You may also pay by check or money order, payable to the Vermont Department of Taxes, with your Social Security number and tax year written clearly. Mail payments to the address for balance-due returns. Paying on time—even if through monthly payments—helps avoid mounting fees and keeps your account in good standing with the Vermont Department.
Once your Vermont tax return is submitted, you can easily track your refund or check your balance status through the Vermont Department’s secure online system. This ensures you always have up-to-date information on your account and can take action if there are delays or changes.
You can track your refund 24/7 using the myVTax online portal. To check your status, you’ll need:
Most electronic filers receive their refund within 2–3 weeks, while paper filers may wait 6–8 weeks. If your return requires review or additional information, processing may take longer. The system will note if more documentation is needed.
The same portal allows you to view your account balance in real time. This is especially important if you owe taxes and must monitor interest and penalties accruing over time.
Regularly checking your account confirms that all payments have been applied correctly and that no unexpected fees or charges have been added. This is particularly helpful for taxpayers on an installment agreement or monthly payments.
Your responsibility doesn’t end after you file until your account is fully settled. Monitoring your refund status or remaining balance helps avoid misunderstandings, missed notices, and additional interest charges. If the Vermont Department requires further details, responding quickly can prevent processing delays. Staying informed ensures you receive your refund as soon as possible or pay off your balance before penalties and fees increase unnecessarily.
Missing the Vermont tax return deadline can cost you far more than expected. Even if you qualify for a refund, filing late can delay payment for months and may result in penalties under certain conditions. Understanding Vermont’s extension process and late filing rules helps taxpayers avoid these avoidable costs.
If you cannot file by the regular due date, you may request more time by filing Form IN-151.
You can apply online through the myVTax portal or mail the completed form to the Vermont Department of Taxes.
Vermont allows a 60-day grace period after the April due date to file without a late filing penalty. However, this grace period does not stop interest from accumulating if you owe a balance.
Even if you cannot pay in full, submitting your return on time reduces your penalties and stabilizes your account. Waiting too long increases your debt and risks further collection action.
Before sending your Vermont tax return—whether by mail or online—ensure every detail is correct. A missing form, signature, or payment can delay processing or cause penalties. This checklist will help you complete your filing with confidence.
Return Accuracy
Attachments and Documentation
Payment Arrangements
Signatures and Dates
Filing Method
Completing this checklist ensures your return is accurate, your payment is applied correctly, and your refund arrives as quickly as possible.
The Vermont Department sets minimum monthly payments based on your outstanding balance, income, and how long you have to repay the debt. This amount varies for each person, but it must cover interest and reduce the principal over time. Failing to pay the minimum or missing payments can lead to added penalties, cancellation of your agreement, or even collection action. It is always best to contact the Department directly to confirm your required payment schedule before committing.
Contact the Vermont Department via phone, email, or the secure myVTax portal. When you reach out, provide your Social Security number, account number, tax year, and any notices you have received. This helps the person assisting you quickly verify your account and address your issue. Whether you are asking about a refund, payment status, or a form, having your information ready can significantly shorten the time it takes to resolve your inquiry.
Missing the due date can result in penalties, daily interest charges, and processing delays. Even if you expect a refund, filing late may slow payment by several weeks or months. Every person who owes taxes should file as soon as possible to limit penalties and avoid collection measures. You can still file and request an installment agreement to reduce added costs if you cannot pay in full.
Through the myVTax portal, you can apply online for payment plans, tax extensions, and credits. The system guides each person step-by-step, prompting for all necessary fields before submission. This reduces the risk of missing information and speeds up processing. The online system also allows you to track your application and receive updates faster than mailing paper forms.
Respond immediately if the Vermont Department asks for additional information to avoid processing delays or penalties. Everyone should send exactly what was requested through secure online upload, mail, or in person. Keep copies of everything you send. Prompt compliance speeds up processing and prevents added interest from accumulating on any unpaid balance.
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