February 12, 2019
In this Issue
2019 Tax Season Update
2019 Tax Season Update TaxSeason
2019 Personal Income Tax Season
Filing season opened on Jan. 28, and there are many changes to Vermont taxes for 2019. The Department of Taxes has information and resources to help you understand the changes for the 2019 tax season and file your taxes. Check out these resources:
  
Taxpayers will see a number of changes to the Vermont tax forms this year. Many of the changes come as a result of Act 11, Vermont's response to the 2017 federal Tax Cuts and Jobs Act (TCJA), which became law during the 2018 special legislative session. Read about the new Vermont standard deduction, personal exemption, tax-deductible charitable contribution, Social Security Benefit Exemption, and more in the press release and 2019 Tax Season Update:
Filing Your Taxes
Withholding NewsWithhold
Completing the W-4VT is important for 2019
Because of the new tax laws affecting Vermont individual income tax enacted in 2018, the Department strongly recommends that employees complete or update Form W-4VT . An employer may use the information from federal Form W-4 if a Vermont form is not submitted, but there is a possibility that not enough tax will be withheld. This could result in a tax liability or tax owed when employees file their taxes. The Department of Taxes encourages employers to require that their employees complete both Form W-4 and Form W-4VT to ensure the correct amount of federal and state tax is withheld.

2019 Withholding Tables
The 2019 Vermont withholding tables are now available on our website.  

Filing W2 and 1099 Forms
The Vermont Department of Taxes is no longer participating in the Combined Federal/State program for submitting Form W-2 and Form 1099 with the IRS. Businesses may e-file their forms with the Vermont Department of Taxes through myVTax .
Important Remindersreminders
Save donation receipts
Vermont's Charitable Contribution Tax Credit was passed by the legislature in 2018. The credit is a 5% credit of the first $20,000 in eligible charitable contributions made during the tax year. To claim the credit, be sure that donations being reported were to eligible charitable organizations as defined by federal law. Save all receipts, but don't send them with the IN-111. Taxpayers may be asked for proof of the contributions. The maximum charitible contribution credit toward reducing a taxpayer's tax liability is $1000.
 
Homestead Declaration is required 
Every Vermont homeowner whose home meets the definition of a Vermont homestead must file a Homestead Declaration annually by April 15. Declaring a property as a homestead ensures that property tax will be assessed at the residential rate, rather than the nonresidential rate. The Homestead Declaration is due April 15 even if the homeowner requests an extension to file income taxes. File the Homestead Declaration if you are a Vermont resident, and you own and occupy your home as your domicile as of April 1, 2019. Filing is easy, and may be done electronically for free under the Individuals tab on myVTax. The fillable Homestead Declaration and Property Tax Adjustment paper forms can be downloaded from our website.
Mark Your Calendar Capitol
"Capitol for a Day" Coming to Orange County
Gov. Phil Scott's Capitol for a Day will be in Orange County on Tue., Feb. 26. In addition to events throughout the county, officials from the Department of Taxes and other agencies will hold a roundtable discussion. Look for an announcement with more details in the coming days.
Contact Us When You Have a Question  ContactUs
Tax professionals with questions can reach the Department of Taxes at the 802-828-6815, or by emailing [email protected]. This special phone number for professional preparers is answered Monday-Friday 7:45AM-4:30PM.
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