How to file a Vermont income tax return

This article was fact-checked by our editors and CPA Janet Murphy, senior product specialist with Credit Karma. It has been updated for the 2019 tax year.

Vermont is famous as the birthplace of Ben and Jerry’s ice cream, and as the maple syrup capital of the U.S.

If you live or work in the Green Mountain State, you may need to pay Vermont income tax. But paying income tax in Vermont doesn’t have to be difficult. Here’s some information that can help you prepare and file your Vermont income tax return.

• The basics of Vermont state tax
• Vermont deductions and credits to know
• How to file your Vermont state tax return
• If you owe and can’t pay
• Tracking your Vermont tax refund

The basics of Vermont state tax

Taxing body

The Vermont Department of Taxes administers tax laws and collects taxes in the State of Vermont.

The department’s general information number is 1-802-828-2505. You can also find answers to Vermont tax questions at the state’s individual income tax site.

Filing and payment deadline

For 2019 state taxes, the state has extended the filing and payment deadline. Vermont residents now have until July 15, 2020, to file their state returns and pay any state tax they owe for 2019. As with the federal deadline extension, Vermont won’t charge interest on unpaid balances between April 15 and July 15, 2020.

You don’t need to do anything to get this extension. It’s automatic for all Vermont taxpayers. But keep in mind that if you’re expecting a refund, you might want to go ahead and file as soon as possible. During the coronavirus crisis, the state is continuing to process tax returns and issue refunds.

While this year is a bit different, Vermont’s Tax Day is generally April 15 — the same for filing your federal return. If the April 15 falls on a weekend or holiday, the deadline will be extended to the next business day.

Filing statuses

Vermont recognizes these filing statuses.

• Single
• Married/civil union partners filing jointly
• Married/civil union partners filing separately
• Head of household
• Qualifying widow(er) with dependent children

Your filing status must be the same as your federal filing status, except in two situations where federal information may be used differently for your Vermont return.

• Civil union
• Only one spouse has a qualifying connection to Vermont that’s subject to Vermont’s tax jurisdiction

Vermont income tax rate(s)

Vermont has four tax rates, and your income and filing status determine which marginal rate applies to you. For 2019, the tax rates are 3.35%, 6.6%, 7.6% and 8.75%.

Vermont deductions and credits to know

Vermont residents can take a standard deduction that varies based on filing status. For 2019, the amounts are …

• Single — $6,150
• Head of household — $9,200
• Married filing jointly or surviving spouse — $12,300
• Married filing separately — $6,150
• $1,000 additional deduction if you are blind or 65 or older and received the deduction on your federal income tax return

You can also take a personal exemption of $4,250 for yourself, your spouse or late spouse (if filing jointly) and for each qualifying dependent who is not the dependent of another taxpayer.

Here are some available Vermont tax credits for 2019.

• Earned income tax credit: If you claimed the federal earned income tax credit, you might be able to claim a Vermont tax credit of 36% of your federal credit amount.
• Credit for child and dependent care: If you qualified for the federal child and dependent care credit, you can also qualify for the state-level credit.
• Low-income child and dependent care credit: If you meet income requirements, you may be eligible for this credit (you can’t take both this and the credit for child and dependent care).
• Vermont charitable giving tax credit: As of the 2019 tax year, a 5% nonrefundable credit is available for any charitable contribution (up to $20,000 maximum), as long as the contribution is also deductible under IRS rules.

How to file your Vermont state tax return

You have multiple options for filing and paying your Vermont state income tax.

• You can e-file through commercial vendor software or an online tax-preparation and filing service. Other vendors and services may charge a fee based on your income, age or other factors, so be sure you understand possible charges before filing.
• You may also download forms — including Vermont IN-111, Vermont’s equivalent of the federal 1040 — through the Vermont Department of Taxes website and mail a paper return. To mail your return with a payment, send it to Vermont Department of Taxes, P.O. Box 1779, Montpelier, Vermont 05601-1779. If you are due a refund or don’t owe any tax, mail your return to Vermont Department of Taxes, P.O. Box 1881, Montpelier, Vermont 05601-1881.

If you can’t file your Vermont income tax return by April 15, you can apply for a six-month extension through myVTax online, or by mailing Form IN-151, Application for Extension of Time to File. You must make your application by the original due date of your tax return. And a filing extension won’t extend the time you have in which to pay any taxes you owe — you’ll need to pay on time to avoid interest and penalties.

If you owe and can’t pay

If you can’t pay the full amount of tax due, you can request a payment plan. You’ll need to complete VT Form 693 for Wage Earners and Self-employed individuals and send it to the Vermont Department of Taxes, Attn: Compliance, P.O. Box 429, Montpelier, Vermont 05601-0429 to request a payment plan. However, be aware that not paying Vermont income tax by the due date means you’ll face interest and penalties, and other consequences like tax liens, debt collection or even garnishment of your wages.

Tracking your Vermont tax refund

You can track your Vermont state tax refund using myVTax, the Vermont Department of Taxes online system. If you have further questions, e-mail tax.individualincome@vermont.gov.

Bottom line

Vermont’s nickname is the Green Mountain State, but you don’t have to climb a mountain of paperwork to file your Vermont state income tax. Remember, e-filing is fast and accurate and can result in getting your refund in six to eight weeks compared to the eight- to 12-week turnaround time when you file a paper return.

A senior product specialist with Credit Karma, Janet Murphy is a CPA with more than a decade in the tax industry. She’s worked as a tax analyst, tax product development manager and tax accountant. She has accounting degrees and certifications from Clemson University and the U.S. Career Institute. You can find her on LinkedIn.