TaxEngine - Basic Instructions for Preparing and Filing Vermont Tax Returns
In preparing the state tax return, most information will carry from the federal return. The income and withholding will carry to the state from entries on the W-2. Be sure the state information has been entered on the W-2 input screen. Other income items will carry from the federal input according to the state designated.
If you have additional information to enter, click on the 'tax forms' button. Input for all the state forms is available.
Renter Rebate Claim - PR-141
A rebate for rent can be claim if total household income is $47,000 or less and taxpayer was a legal resident of Vermont for all of 2007. The allowable rent is 21% of the rent paid for the year. The amounts come from the Landlord's Certificate LC-142. Enter the greater of line 16 or line 23. TaxEngine assumes that 100% of the space was used as home living space. All other calculations are automatically made. If there are adjustments to be made, click on the 'tax forms' button at the top of the screen and then select Vermont. All Vermont forms are available for additional information.
Homestead Declaration and Property Tax Adjustment Claim - HS-122
All resident Vermont homeowners must file the declaration section of Form HS-122. This declaration must be filed even if you do not claim or are not eligible to claim a property tax adjustment, or you do not have a requirement to file other returns. Individuals holding a life estate or living in the home they transferred to a revocable trust also need to file.
The SPAN number is a required entry. This number is found on your 2007/2008 property tax bill.
Part-Year Resident
You are considered a part-year resident of Vermont if, during 2006, you moved your permanent home into or out of Vermont. You must pay Vermont income tax on income you earned, received or accrued while living in Vermont.
Nonresident
If you are a resident of another state and worked in Vermont during 2007, you are required to file a Vermont income tax return and are required to pay Vermont income tax on salary wages and other employee compensation for work performed in Vermont.
If you are a Vermont resident but worked in another state, all of your income is subject to tax, no matter where it is earned, except income earned from out-of-state business activity.
Amended Return
You are required by Vermont law to file an amended Vermont return within 60 days of knowledge of the change to Vermont income, or 60 days from receipt of your notice of change by IRS or filing an amended return with the IRS. A late file penalty will be assessed if the amended Vermont return ins not filed with the 60 days.
Check the amended return box and then enter the correct figures as if this were the original filing. Enter the amount originally refunded or paid. Choose the option to print and mail your amended return. Mail it to the address printed on the instruction letter that will be generated when you select the paper file option. The amended return cannot be electronically filed.