Vermont Official State Website

CORONAVIRUS (COVID-19) UPDATE: INFORMATION FOR TAXPAYERS

LAST UPDATED ON NOVEMBER 20, 2020 AT 2:20 PM

Message from the Commissioner
Act 154 Vermont Independent Colleges COVID-19 Impact Grant
Vermont Expanded Economic Recovery Grant Program
Small Business Recovery Technical Assistance Program
Economic Recovery Grants
Department Temporarily Closed to the Public
*Updated Filing Guidance, Penalty Waivers, and Extended Due Dates
Funding Through Municipal Grants
Information for Towns
Electronic Filing and Tax Preparation
How to Contact Us
Frequently Asked Questions
Additional Resources

This page will be updated as new information is available. For up-to-date information on how the state of Vermont is responding to COVID-19, please go to the Vermont Department of Health’s website http://healthvermont.gov/covid.

Message from the Commissioner

The Vermont Department of Taxes continues to carefully monitor the evolving situation related to the COVID-19 pandemic. We are working closely with the office of Governor Phil Scott, following changes at the federal level, and adhering to guidance from the Vermont Department Health.

To maintain the safety of our employees while still fulfilling our mission to Vermonters most of our Department's workforce has transitioned to working remotely.

Although the processing of 2019 tax returns, including getting tax refunds into the hands of Vermonters, continues, the Department has received a less than expected number of Homestead Declarations. If you have not yet completed your Homestead Declaration, please contact the Department right away.

The Department has been working with other state agencies to deliver Economic Recovery Grants to Vermont businesses impacted by the COVID-19 pandemic. Expansions of the eligibility requirements have allowed us to put more needed funding in the hands of more Vermont businesses. – Commissioner Craig Bolio

Act 154 Vermont Independent Colleges COVID-19 Impact Grant

Act 154 of 2020 provides Coronavirus Relief Funds to various entities in Vermont for necessary expenses incurred due to, or as a result of, the COVID-19 public health emergency. The Act 154 Vermont Independent Colleges (VIC) COVID-19 Impact Grant covers COVID-19-related losses or expenditures previously incurred or expected to be incurred during the March 1, 2020 to December 30, 2020 CARES Act timeframe.

Learn more >>

Vermont Expanded Economic Recovery Grant Program

The Vermont Expanded Economic Recovery Grant Program Application Period is Now Closed.

The Vermont Department of Taxes and the Agency of Commerce and Community Development are reviewing applications and hope to issue payments during the first two weeks of December. In the meantime, please visit ACCD's COVID-19 Recovery Resource Center for resources to support businesses and individuals. 

FAQs and Help

Grant Reporting
Contact Us

If you have any questions, please contact us at tax.grants@vermont.gov or 802-828-6611. We apologize for any long wait times due to high call volume.

Small Business Recovery Technical Assistance Program

Help Available To COVID-19 Impacted Businesses

Vermont businesses that have been negatively impacted by the COVID-19 pandemic can now seek free technical business assistance to help in their recovery. Learn more about the Small Business Recovery Technical Assistance Program.

Department Offices Temporarily Closed to the Public

In addition to providing our employees with the tools required to work remotely and encouraging Vermonters to communicate with the Department electronically, to reduce the risk and spread of COVID-19, the Department’s offices at 133 State Street in Montpelier are temporarily closed to the general public. Please be assured that the Vermont Department of Taxes is continuing to process tax returns and refunds for Vermonters.

Be Alert to Scams

Criminals are continuing to find new ways to steal your information and your money. It is important to always remember that neither the Vermont Department of Taxes nor the IRS will call, text, or email you to verify your banking information or to ask for your social security number, passwords or other personal information. If you have concerns about the identity of somebody who contacts you, hang up and call us at (802) 828-6611 to ensure you are talking to a Department employee. Learn more about protecting your personal information and how to report a scam.

Filing Guidance, Penalty Waivers, and Extended Due Dates

*New Taxability of Alcoholic Beverages Provided for Takeout

As part of Vermont’s response to the COVID-19 pandemic, the Governor signed a directive allowing businesses to sell and deliver alcoholic beverages, as long as the beverages are purchased with a meal. The directive also allowed delivery of alcohol products by licensed retail stores. Learn more >>

Guidance for Individuals Temporarily Living and Working Remotely in Vermont

If you are a non-resident but you are temporarily living and working in Vermont, you have an obligation to pay Vermont income taxes on the income earned while you were living and performing work in Vermont. This is true even if you were in Vermont due to the COVID-19 pandemic, and regardless of whether your employer is located inside or outside of Vermont.

For businesses who have remote workers located in Vermont only on a temporary basis, Vermont will not require that business to change the employee’s withholding state. However, businesses and their employees who have temporary remote workers in Vermont may wish to discuss a change to the employee’s withholding state if the employee intends to be here for an extended time period, albeit temporarily. Workers who have moved to Vermont permanently and make Vermont their domicile will need to have their withholding location changed. Find additional information about who needs to file.

Meals and Rooms Tax and Sales and Use Tax

The Department announced on March 23, that it would temporarily not assess penalties or interest for those businesses that had been affected by the COVID-19 pandemic and could not meet the March 25, 2020, or April 25, 2020, sales and use tax or meals and rooms tax deadlines. Businesses that were able to meet the deadlines for filing and payment were advised to continue to do so.

It is important to note that the decision to waive penalty and interest during March and April was not an abatement of the tax collected. The Commissioner of Taxes does not have the authority to provide an abatement of these taxes once they have been collected.

This relief did not cancel or waive a business’s responsibility to collect these taxes. Businesses were required to continue to collect meals and rooms and sales and use taxes as they normally would. Beginning with taxes collected from customers during the month of April, taxes were to be remitted by May 25 or were subject to interest and penalty. Read our Frequently Asked Questions for more information.

Due Date for Multiple Tax Filings and All Deferred Tax Payments was July 15

Income Tax

On March 21, the U.S. Treasury Department and the Internal Revenue Service announced that the federal income tax filing due date was extended from April 15, 2020, to July 15, 2020. The Vermont income tax filing and payment due dates for the following taxes were also extended and were due July 15, 2020. Read our Press Release.

Estimated Income Tax

The Commissioner of Taxes, under the Governor’s directive, also exercised his authority to waive penalties and interest for any tax year 2020 estimated income tax payments due between April 15 and July 15. Previously deferred estimated income tax payments were due July 15.

This relief applies to:

  • Personal Income Tax
  • Corporate and Business/pass-through Income Tax
  • Fiduciary and Estate Income Tax
Economic Impact [Stimulus] Payments

In April, the IRS began the distribution of economic impact payments, with no action required for most people. For additional information see the IRS website.

Funding through Municipal Grants

The Agency of Administration, including the Vermont Department of Taxes, will be responsible for distributing the grant funds available to municipalities. Learn more about the two grant opportunities funded by Act 137:

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Information for Towns

For information about new Grievance Hearing protocols, please see the Grievance Hearing Procedures for 2020 as Recommended by PVR. For additional municipal official guidance, please see Information for Towns.

Rescheduled Training

Please check our Municipal Official Training and Certification Program page for up to date information on course cancellations.

Electronic Filing and Tax Preparation

We encourage you to file electronically and use our online services whenever possible. Here is a list of available services:

  • Free File
    Eligible taxpayers in Vermont may use Free File to electronically file both federal and state personal income taxes.
  • myVTax
    File your Homestead Declaration, Property Tax Credit Claim, and Renter Rebate Claim on the Department’s online portal. You may also check your filing and refund status, respond to correspondence, make payments, and more.

See all myVTax Services and Features

Tax Preparation

With many businesses closed until further notice, professional tax preparers may still be unavailable for in-person tax preparation. Please call your tax preparer to make arrangements.

All in-person free tax preparation program sites in Vermont operated through the IRS Volunteer Income Tax Assistance (VITA) Program, IRS Tax Counseling for the Elderly (TCE), and AARP Foundation Tax-Aide are also closed until further notice. For the most up-to-date information on the status of free tax assistance, visit the IRS and AARP websites.

However, those wishing to file their tax returns still have options.

  • If you are able to work with your tax preparer remotely, the Department encourages you to do so.
  • If you are able to prepare your returns without the assistance of a professional preparer, our electronic filing and online services, discussed below, may help.

  • For additional Stay Safe Stay Home Sector-Specific Guidance, including Financial, Legal and Professional Services providing limited in-person services, please see the Agency of Commerce and Community Development’s website.

How to Contact Us

To help slow the rate of transmission and protect our Vermont communities, we are transitioning to a remote workforce. To help us reach that goal, we are asking that you email us rather than call us.

Hours and Days of Operation

Taxpayer Services Division (personal income tax, business and corporate income taxes, business taxes, real estate, miscellaneous taxes) are available to answer phone calls and emails Mon, Tue, Thu, Fri, 7:45 am-4:30 pm. [Anchor]

Compliance and Property Valuation and Review divisions are available to answer phone calls and emails Monday to Friday, 7:45 am-4:30 pm.

Additional Resources

News
Resources

Contact

Commissioner Craig Bolio
(802) 828-2505 | Department Directory

Taxpayer Services
(802) 828-2865
Mon, Tue, Thu, Fri, 7:45 am-4:30 pm 

Taxpayer Assistance Window
1st Floor Lobby | 133 State Street
Montpelier, VT 05602
Temporarily Closed to the Public

Public Records Request
Statewide Public Records Database
Government Transparency