Important Tax Season Announcements ImportantAnnouncements
Looking for your refund? 
Check out the status of your refund by clicking the "Individuals" tab and then "Check the Status of My Return." See our fact sheet called Where's My Vermont Income Tax Refund? for more information.
 
Did you have Vermont Health Connect Insurance in 2017?
Small changes in your income can make a big difference in your premium tax credit. If your income is just $1 over the limit, you are not eligible for a premium tax credit. Vermont Legal Aid has issued an informative fact sheet

You may be eligible for Vermont Free File
About 65% of Vermont taxpayers were eligible to e-file through Free File last year. Find out if you're eligible to e-file at no cost this year. If you qualify, choose from our list of eight vendors. Learn more about Free File.  

Do you know about the Earned Income Tax Credit?
The purpose of the Earned Income Tax Credit (EITC) is to help Vermonters remain in the workforce. If you qualify for the federal EITC, you are eligible for the Vermont credit.  If eligible, find out what you need to do to file claim the credit. 

Free Volunteer-Provided Tax HelpVITA
Free tax help is available for eligible Vermonters 
 
Many Vermonters are eligible for free tax help provided by trained volunteers. The VITA program offers free tax help to people with lower income, those with disabilities, the elderly, and those with limited English. The TCE program focuses on those age 60 or over. Find a VITA/TCE site near you.

The AARP Foundation Tax Aide Program provides tax assistance sites to taxpayers with low and moderate incomes, with special attention to those 50 and older. Find a site near you with the AARP Tax-Aide Site Locator.


New Version of W-4W4
IRS issues new withholding calculator for 2018
 
The IRS has announced a new withholding calculator and a new version of form W-4 for 2018. They reflect changes to withholding enacted by the Tax Cuts and Jobs Act. Changes include increasing the standard deduction, removing personal exemptions, increasing child tax credit, limiting or discontinuing certain deductions and changing the tax rates and brackets. Employees should use the IRS Withholding Calculator to find out how many allowances they should claim. Avoid a serious overpayment or underpayment; adjust withholding as soon as possible so you'll have more time to catch up to the correct 2018 withholding, if needed.


Homestead DeclarationHomestead
The Homestead Declaration is due every year 
 
Don't forget to file your Homestead Declaration by April 17 this year. It's easy to file online through myVTax at www.myVTax.vermont.gov.  You may check to see if we have received your Homestead Declaration through myVTax. On the "Individuals" tab, click "Check the Status of My Return."


Deceased TaxpayersDeceased
What to do if a taxpayer, spouse, or civil union partner died during 2017
 
There is a box in Section 1 of the IN-111, Vermont Income Tax Return, that addresses this situation. Check the box if it applies to your situation. An income tax refund may be claimed on behalf of the deceased. See instructions here.

Clarification: Report Lottery WinningsLottery
If you win playing the lottery or gambling, you must report it 

If you win playing the lottery or gambling, you must report it  If you win when playing the lottery or gambling, you must report this as income on your federal income tax return. Any losses may be subtracted from winnings. However, you should keep good records of purchases of lottery tickets, winnings, and losses. There is no additional documentation required on your IN-111, Vermont Income Tax Return. Lottery or gambling income flows through to Vermont from your federal return.

Individuals should keep in mind that although gambling losses can be deducted from gambling winnings on the federal return, Vermont caps itemized deductions at two and half times the standard deduction. This accordingly creates a cap on deductions for gambling losses. More information is available here


Report Business Credit Card Payments to FEIN, not SSN Report
Correct Reporting of credit card payments on 1099-K 
 
If you are a business that takes credit card payments from customers, make sure the payments issued by the bank go to your business Federal Employer Identification Number, not your Social Security Number. If this income is not reported correctly on the 1099-K from your bank to the IRS, it may create discrepancies between income reported on the 1099-K and income you claim on your personal income tax.


Fact Sheets for Linens, Contractors Fact
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.
 
Updated fact sheet on Payment of Sales and Use Tax by Contractors
The updated fact sheet, Payment of Sales and Use Tax by Contractors, adds guidance on the proper application of Vermont Sales and Use Tax to blueprints. 
 
See our complete list for more fact sheets, guides, and infographics.  

New Video on Websitevideo
New video demonstrates the Department of Taxes Website
 
Watch a new 8-minute video giving an overview and tour of our website. Get tips for navigation and learn how to search and locate information fast.

Video Conference with the IRSIRSVirtual
Do you have questions about your federal income tax return?
 
Meet with an IRS agent via the IRS Virtual Service Delivery Program. You will video conference with an agent and be able to show the agent your return(s) and supporting documents via the internet.

Learn more here.
The service is available Monday and Wednesday by appointment only.
Call 844-545-5640 to schedule an appointment. Please do not call the Vermont Department of Taxes.


When You Have a QuestionQuestions
Taxpayers with questions can reach the Department at 802-828-2865, or (toll-free in Vermont)
1-866-828-2865. The Individual Income Tax Section phone number is answered Monday, Tuesday, Thursday, and Friday, 7:45AM-4:30PM. In order to focus on processing, we do not take calls on Wednesdays.
 
Questions can be emailed to tax.IndividualIncome@vermont.gov.
 
Many answers can be found on our website. At the home page, simply enter your search word or phrase in the customized search window.
 
We are here to help.

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