The Vermont personal exemption is $4,850 for tax year 2023.
The Vermont Standard Deduction increases an average of $688. For tax year 2023, it is $14,050 for Married/CU Filing Jointly or Qualifying Widow(er), $7,000 for Single or Married/CU Filing Separately, $10,550 for Head of Household, and an additional $1,150 for individuals 65 and older and/or blind.
Child Tax Credit Payments and Economic Impact Payments (Federal stimulus checks/payments)
Child Tax Credit, Advance Child Tax Credit, and Economic Impact Payments sent to taxpayers by the federal government are not taxable and are not included as Household Income.
Unemployment Benefits, Extended Benefits, Pandemic Unemployment Assistance, Pandemic Emergency Unemployment Compensation, and Hazard Pay to Vermont’s frontline employees are all taxable income.
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, regardless of your employer’s location.
Household Income includes all income, taxable and nontaxable, of everyone who resided with you at any time during the tax year, including family and non-related individuals. If an individual resided with you for fewer than 12 months, include that individual’s income only for the time they resided with you.
Household Income does not include federal Child Tax Credit, Advance Child Tax Credit, or Economic Stimulus Payments.
Social Security Benefits Exemption
Social Security benefits are exempt from income tax depending on your filing status and adjusted gross income. Use the Social Security Exemption Worksheet to determine if you qualify for a full or partial exemption.
To file, use Schedule IN-112, Vermont Tax Adjustments and Credits.