Personal Income Tax

Overview

Personal income tax is collected from individuals or entities. When you file your tax return annually on or before the April filing deadline, you are reconciling the amount of taxes you have paid along with any additions, credits, and deductions. Personal income tax is generally paid throughout the year based on earnings and employment status. Your employer withholds taxes from each paycheck and sends it to the Department of Taxes. If you are self-employed, you must pay your own tax to the Department, usually quarterly.

How to File

Federal Income Tax Return

To file your Vermont Income Tax Return, you will need to enter your

1. adjusted gross income and
2. taxable income from your federal income tax return, found on Form 1040.

You may need additional information from your federal return to complete Form IN-111.

Statement Showing Income

When you file a Vermont income tax return, you will need a statement from your employer showing earnings. If you are self-employed, you do not have to file any specific documents to show earnings, but the Department may request proof of earnings if you claim a tax credit, such as the Earned Income Tax Credit. You also will need statements showing income from investments and other sources. These statements may include one or more of the following:

• Form W-2(s), Wage and Tax Statement, from your employer
• Form 1099(s)

Identification

The State of Vermont is requesting additional information this filing season in an effort to combat stolen-identity tax fraud and ensure that your hard-earned tax refund goes to you. Please provide the requested information from your driver's license or state-issued identification card. Your return will not be rejected if you do not have a driver's license or state-issued identification, and providing the information could help process your return more quickly.

Review the Vermont Income Tax Return filing checklist to make sure you have everything you need.

Forms and Publications