The Vermont Department of Taxes has 3 important reminders for businesses and nonprofits this tax season:
Your mailing address matters
When submitting online returns, be sure to include your unit or suite number/letter on the second address line. We also need your 4-digit ZIP code extension in the ZIP code field. An incorrectly formatted address may delay important correspondence and refunds.
Be sure to update your proper mailing address with your preparer, or he or she may assume it is the same as last year. An incorrect address may delay important correspondence.
Tax exemption for eligible Social Security recipients
In 2018, Vermont lawmakers created the Vermont Social Security Exemption, which fully or partially exempts Social Security income from taxation, based on filing status and Adjusted Gross Income (AGI). See the worksheet on page 15 of the Vermont Income Tax Return Instructions to see who qualifies for this exemption.
When a taxpayer works in more than one state
A taxpayer who earns income from work in Vermont and also in another state should file a state tax return in each state. When a Vermont resident earns money working in another state, Vermont withholding should be calculated for the entire earnings, then reduced by the amount withheld in the other state or states. For work performed in a state with no income tax, the income should be treated as Vermont income for the purpose of withholding. See Technical Bulletin 23.
Davis & Hodgdon Associates CPAs is a full-service public accounting firm with locations in Williston and Rutland Vermont. The firm is a member of several diverse regional and statewide business organizations and serves its clients by providing progressive, proactive services through expert staff, high-end technology, and unparalleled efficiency.