February 28, 2018
Important Tax Season Announcements ImportantAnnouncements
2018 Withholding Tables
We will not be updating the Income Tax Withholding Tables. Please continue to use the Vermont
2017 Withholding Tables until further notice.
  
New refund fraud uses taxpayers' actual bank accounts
The IRS has reported on a new refund fraud scheme affecting taxpayers, where a criminal uses the taxpayer's actual bank accounts for a fraudulent refund deposit. A person posing as a debt collection agency then contacts the taxpayer to say the refund was deposited in error, and asks the taxpayer to forward the money. People should be extremely wary of callers posing as debt collection personnel, especially if they know they don't owe back payments. 

Tuition and Related Expenses Deduction ExtendedTuition
Tuition and related expenses deduction has been extended for TY2017

The federal budget bill passed into law on Feb. 9 extends the deduction for tuition and related expenses for tax year 2017.  The Vermont Department of Taxes had issued an earlier statement saying the deduction had not been extended based on the federal Tax Cuts and Jobs Act. If you are eligible for the deduction and it is not allowed by your software, please contact your vendor immediately to avoid filing errors.

Correct Reporting of Home Business UseHomestead
Claiming a percentage of home business use on your Homestead Declaration

Do you use more than 25% of your home for business use? If you are entering a percentage of home business use on Line A4, "Business Use of Dwelling," on Form HS-122, Homestead Declaration, be sure it matches the percentage of business use you are claiming on Line 7, "Business Percentage," on federal Form 8829, Expenses for Business Use of Your Home. These two forms should show the same percentage numbers, unless it is a bed and breakfast.  For more information visit our website.

New Fact Sheet and GuideFactSheet
New fact sheet on sales and use tax on cleaning services for linens and other rented items
The Department has issued a new fact sheet titled Vermont Sales and Use Tax on the Rental and Cleaning of Linen and Similar Items. If you are a business that rents out linens, pays to rent linens, or pays to have your linens laundered, it is important to understand which transactions are subject to Vermont tax.

New guide for military
Are you serving in the military or national service? Check our new guide Vermont Tax Guide for Military and National Services to see what taxes--- and exemptions-- apply to you
  
See a complete list of our fact sheets and infographics. 
 

When You Have a QuestionQuestions
 
Businesses with questions can reach the Department at 802-828-2505 (option 2). This phone number for businesses is answered Monday, Tuesday, Thursday, Friday 7:45AM-4:30PM. We do not take calls on Wednesdays.
 
For questions about Corporate or Business Entity Income Tax, email tax.corporate@vermont.gov.
 
For questions about Sales and Use Tax, Meals and Rooms Tax, Local Option Tax, Withholding, or for support with myVTax, email tax.business@vermont.gov.
 
We are here to help.

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