Important Tax Updates from Vermont Department of Taxes

The Vermont Department of Taxes has shared some important updates for taxpayers.

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 charitable 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.

Davis & Hodgdon Associates CPAs has been assisting Vermont individuals and business owners with tax consulting and retirement planning for more than 25 years. Call our office in Williston 802.878.1963 or Rutland 802. 775-7132 to schedule a tax planning strategy session today.

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