Filing a Vermont income tax return for 2019 requires a clear understanding of the state’s requirements, forms, and deadlines. Residents, part-year residents, nonresidents with Vermont-sourced income, and certain business entities must follow specific filing rules to remain compliant. This process begins with completing a federal income tax return, as Vermont uses federal adjusted gross income to calculate state taxable income. Knowing which forms to use, when they are due, and what information must be included ensures accuracy and helps avoid penalties.
Vermont’s income tax system applies to individuals, estates, and specific business structures. Taxpayers may need to report wages, investment earnings, social security benefits, and other income subject to Vermont taxation. Understanding applicable deductions, exemptions, and credits can reduce the amount owed, while proper reporting of tax withholding and estimated tax payments can prevent delays in processing refunds. Filing requirements differ for calendar year filers and fiscal year filers, making it essential to confirm your correct tax year before submitting your return.
This guide outlines each step in the filing process, from gathering documents to tracking refunds. It also explains key due dates, including the April filing deadline, extension rules, and payment options. By following these instructions, taxpayers can complete their returns efficiently and in compliance with Vermont’s tax laws.
Vermont requires a personal income tax return from individuals, estates, and business entities that meet specific criteria. Full-year residents must file if they are required to submit a federal income tax return and have more than $100 in Vermont income. Part-year residents and nonresidents must file if they are required to file federally and have more than $1,000 in Vermont-sourced income. Business structures such as sole proprietorships, partnerships, and S corporations may also have state filing obligations. In every case, Vermont law begins with figures from the federal income tax return, particularly adjusted gross income, to determine state taxable income.
The Vermont personal income tax rates for 2019 range from 3.35% to 8.75% across four brackets. Taxpayers may claim a standard deduction amount separate from the federal deduction. The state also allows a personal exemption for qualifying individuals and a charitable giving credit worth five percent of the first $20,000 donated to eligible organizations. Additional tax credit opportunities may be available for child and dependent care expenses, income taxes paid to other states, or investments that qualify under Vermont law. These provisions can reduce net income subject to state tax, lowering the required tax payment.
Certain filing situations require additional attention. Estates and trusts must follow Vermont-specific filing rules, which differ from individual returns. Self-employed individuals may need to report income from business activities and applicable payroll taxes. Social security benefits may be partially taxable depending on overall revenue. These factors and accurate reporting of tax withholding and estimated taxes help ensure a complete and compliant income tax return. Taxpayers should review the forms and instructions carefully to confirm that all applicable sections are completed before the time to file expires.
The Vermont Department of Taxes sets clear income thresholds and due dates, determining when an income tax return must be filed. These rules apply to individuals, estates, and business entities. For 2019, residents must file if they meet the state’s income criteria, while nonresidents must file if they have Vermont-sourced income exceeding the threshold. Both groups must start with a completed federal income tax return to establish adjusted gross income and determine Vermont taxable income.
Vermont differentiates between calendar-year filers, whose tax year matches the calendar year, and fiscal-year filers, whose tax year ends on a date other than December 31. Filing deadlines and payment schedules must be calculated based on the taxpayer’s chosen tax year. This ensures that the correct time to file is observed, avoiding late penalties and preserving eligibility for applicable tax relief programs.
Form IN-111 is the main form used to file a 2019 personal income tax return in Vermont. Personal information, taxable income, adjusted gross income, credits, deductions, and the final tax amount owed or refunded are all recorded in this document. Additional schedules might be needed, depending on the taxpayer's financial circumstances. Whereas Schedule IN-113 computes income adjustments, Schedule IN-112 reports Vermont tax adjustments and credits. Schedule IN-117 applies if income tax was paid to a Canadian province or another state, and Schedule IN-153 deals with capital gains exclusions. Copies of these forms and official instructions are available from the Vermont Department of Taxes.
Certain business entities and estates must submit specific Vermont tax forms. Businesses that meet eligibility requirements can use Form BI-476, which is designed for Vermont resident-only entities without income from other states. Most other partnerships, S corporations, and LLCs are required to file Form BI-471. This form may require additional schedules for income apportionment and allocation. Estates may be required to submit fiduciary income tax returns on Vermont-specific forms. State tax publications provide information about eligibility, filing requirements, and related forms.
Vermont uses figures from the federal income tax return, specifically adjusted gross income reported on Form 1040, as the starting point for its income tax calculations. For this reason, it is necessary to complete the federal return before preparing state forms. Official IRS resources for Form 1040 provide instructions, worksheets, and explanations to ensure accuracy. Coordinating both filings helps ensure that income, deductions, and credits are reported consistently, which reduces the risk of processing delays and supports the accurate determination of any tax due or refund owed.
Before starting the Vermont income tax return, assemble all necessary paperwork. This includes your completed federal income tax return, as Vermont uses your adjusted gross income as the starting point for state calculations. You will also need W-2 forms showing wages and tax withholding, 1099 forms reporting other income such as interest, dividends, or self-employment earnings, and any investment tax statements. Keep records of estimated tax payments made during the year and details of any credits or deductions you plan to claim. For estates or trusts, include relevant fiduciary income statements.
Figures from your federal income tax return, specifically from Form 1040, are used to start Vermont's Form IN-111. Correct computation of adjusted gross income, taxable income, and deductions is ensured by completing the federal return first. Filing status, which must match between federal and state returns, is also clarified in this step: single, married filing jointly, or married filing separately.
First, provide personal details such as your name, filing status, and Social Security number. Apply Vermont-specific adjustments, calculate your state taxable income, and then enter your adjusted gross income from your federal return. Deduct the applicable standard deduction amount and any applicable personal exemptions. Determine your base tax using Vermont's tax tables, then apply any applicable tax credits. If appropriate, include use tax for purchases made online or outside the state.
Schedules must be included when certain conditions apply. Schedule IN-112 is used for Vermont tax adjustments and credits, Schedule IN-117 applies when claiming credit for taxes paid to another state or Canadian province, and Schedule IN-153 calculates capital gains exclusions. Ensure all schedules are completed accurately and attached to your return.
Check all calculations, confirm that all required forms are included, and verify that signatures and dates are present. Attach W-2s and other supporting documents if filing by paper. Confirm that the correct mailing address is used if submitting a paper return, and ensure that payment is included if taxes are owed. Taking time to review the return before submission helps prevent delays in processing and reduces the risk of penalties.
Vermont residents who work as employees have payroll taxes withheld by their employer throughout the year. These withholdings cover personal income tax, Social Security, and Medicare contributions. The allowances influence the amount withheld claimed on your W-4 form. Employers are responsible for submitting these funds to the appropriate tax agencies on behalf of the employee. Accurate withholding helps prevent a large balance due when filing and may reduce the risk of underpayment penalties.
Self-employed people might need to make estimated tax payments if they have substantial investment income or other income that is not subject to withholding. These payments are typically made every quarter to pay personal income tax and, if applicable, self-employment tax. For example, a consultant who receives income from several clients must compute and submit estimated tax payments to avoid penalties. Vermont adheres to a timeline that closely matches federal deadlines; therefore, to stay in compliance, taxpayers should verify particular due dates.
Excise taxes, which are imposed on particular goods, services, or activities, may also be owed by some taxpayers. These impact overall business and individual tax planning, even though they differ from the income tax return. Comprehending each relevant tax topic guarantees that all obligations are fulfilled on schedule. Reviewing these obligations before the filing deadline helps maintain compliance and supports accurate completion of the income tax return.
Electronic filing is the preferred method for submitting a Vermont personal income tax return, and most taxpayers choose it because it offers both speed and convenience. Returns filed electronically are processed faster than paper submissions, which often means refunds are issued more quickly. E-file systems also help reduce the risk of errors by performing basic checks before the return is submitted, identifying missing information or calculation mistakes. Vermont provides eligible taxpayers access to Free File programs, allowing them to complete and submit their returns online at no cost. Using an approved e-file provider ensures secure transmission of sensitive information and allows for direct integration with federal filing through the IRS. Taxpayers can file their state and federal returns in one streamlined process, improving efficiency and accuracy.
Although electronic filing has become standard, some taxpayers still file by paper. Individuals with limited internet access or who are more comfortable preparing their returns manually. Paper filers must print their forms, use blue or black ink, and ensure all required schedules and supporting documents are attached. The Vermont Department of Taxes provides specific mailing addresses depending on whether the return includes a payment. The next business day becomes the official due date if the filing deadline falls on a weekend or legal holiday. To avoid delays, all paper returns must be complete, legible, signed, and accompanied by the correct payment voucher when necessary. Careful attention to these details ensures timely processing and helps prevent penalties or interest that may result from incomplete or late submissions.
Before sending your Vermont personal income tax return, carefully review all required forms and schedules to ensure they are accurate and complete. Form IN-111 must be fully prepared for individuals, while business entities should file the appropriate return, such as BI-471 or BI-476. Any necessary schedules, including IN-112 for adjustments and credits, IN-113 for income adjustments, IN-117 for credit for taxes paid to another state, or IN-153 for capital gains exclusions, should be attached when applicable.
Verify that your federal income tax return is complete and its figures match the information reported on your Vermont return, especially adjusted gross income, taxable income, and filing status. If you are filing a paper return, include all supporting documents such as W-2 forms, 1099 statements, and records for deductions, exemptions, and credits. These documents help ensure accurate processing and may be requested if your return is reviewed.
Make sure your Vermont return is signed and dated. An unsigned return may be considered incomplete, resulting in delays or penalties. If a payment is due, include the correct voucher and use an accepted payment method. For checks or money orders, write them payable to the Vermont Department of Taxes and include your Social Security number or Federal Employer Identification Number.
Confirm that you are using the correct mailing address provided by the Vermont Department of Taxes, which differs depending on whether payment is enclosed. Finally, retain copies of your return, all schedules, and supporting documents for at least three years. These records are valuable for personal reference, future filings, and in the event of an audit or verification request.
The tax deadline for the 2019 Vermont personal income tax return was April 15, 2020. If this date fell on a weekend or legal holiday, the due date would be moved to the next business day. While extensions could be requested to file, any taxes owed still had to be paid by the original deadline to avoid interest and penalties.
Yes, you can still file after the tax deadline, but penalties and interest may apply if taxes were owed and unpaid by the original due date. Late filing may also delay refunds. Filing as soon as possible helps minimize penalties and ensures compliance with Vermont’s filing requirements, even if you missed the original submission date.
You can request an extension by submitting Form IN-151 for individuals or Form BA-403 for businesses before the tax deadline. An extension grants additional time to file the return but not to pay any taxes owed. Payments must still be made by the original deadline to avoid interest charges and late payment penalties.
Missing the tax deadline without an approved extension may result in penalties for late filing and interest on unpaid taxes. The longer the delay, the higher the potential charges. To reduce penalties, file your return as soon as possible, even if you cannot immediately pay the full amount owed to the Vermont Department of Taxes.
Some Social Security income is taxable in Vermont, depending on your federal adjusted gross income and filing status. Taxpayers below certain income thresholds may qualify for full or partial exemptions. If your income exceeds these thresholds, a portion of your benefits will be included in Vermont taxable income and may be subject to state income tax.
Yes, refund status can be checked online through Vermont’s secure portal or by phone anytime during the year. This applies even after the tax deadline has passed. E-filed returns typically process faster, while paper returns may take longer, especially during peak filing seasons. Regularly checking the status helps identify and resolve any issues promptly.
You should keep copies of your Vermont income tax return, schedules, and all supporting documents for at least three years after the tax deadline. These records are essential for future filings, responding to state inquiries, or preparing amended returns. Maintaining complete records also helps in the event of an audit or verification request from the state tax authority.
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