The COVID-19 pandemic has interfered with many facets of daily living, including the deadlines for filing taxes and making payments. In accordance with the federal deadline extension, Vermont has extended the due date for filing and paying personal income tax returns and corporate income tax to July 15, 2020. All taxpayers, including individuals, trusts, estates, partnerships, LLCs, and C companies, are included by the extension. No interest or penalties will be charged on any tax payments that are due on or after April 15, 2020 and before July 15, 2020.
Vermont also levies sales taxes on a variety of goods and services in addition to personal and corporate income taxes. The state’s current sales tax rate is 6%, and certain municipalities may tack on a local choice tax of an extra 1%. In Vermont, various products and services, such as tangible personal property, prepared food and beverages, laundry and dry cleaning, transportation, and telecommunications, are all subject to sales tax. However, several commodities, including food, prescription medications, and medical supplies, are free from sales tax.
The myVTax online portal of the Vermont Department of Taxes allows residents of Vermont to pay their state taxes online. Taxpayers can use the portal to file returns, pay bills, examine account details, and get in touch with the government. Taxpayers must create an account, submit their social security number or business identity number, mailing address, and email address in order to access the portal.
The deadline for submitting state income tax returns is not automatically extended in Vermont. By the original due date of the return, which is April 15, 2020, taxpayers who require additional time to file their forms may submit an extension request. An additional six months will be given to submit the return and pay any taxes owed, but not as a result of the extension request. Therefore, in order to avoid interest and penalties, taxpayers who owe state income tax must pay the tax before July 15, 2020.
Economic impact payments, commonly referred to as stimulus checks, are exempt from Vermont’s state income tax. The payments, which are a part of the federal Coronavirus Aid, Relief, and Economic Security (CARES) Act, are meant to help people and families who have been impacted by the COVID-19 pandemic financially. Federal and state income taxes are not due on the payments since they are not considered to be taxable income. Taxpayers should be aware that any pandemic-related unemployment benefits are liable to both federal and state income taxes.
Finally, Vermont has extended the due date for state income tax filing and payment to July 15, 2020. Taxpayers can now file and pay their taxes online through the myVTax portal. Taxpayers should be aware of the items that are subject to tax as well as the available exemptions because the state applies sales tax on a variety of goods and services. The deadline for requesting an extension in Vermont is April 15, 2020, and there is no automatic extension for filing state income tax returns. Finally, while unemployment benefits are taxable, stimulus payments are exempt from Vermont’s state income tax.
Yes, Vermont is typically seen as having high taxes. As of 2021, Vermont had the 16th-highest state and local tax burden in the country, according to the Tax Foundation. However, the state’s taxpayers may find some solace in the recent delay of the filing deadline due to the COVID-19 pandemic.