The Vermont Department of Taxes reminds Vermont taxpayers that the due date for federal and Vermont personal income tax is April 18, 2023. This deadline also applies to corporate income tax and fiduciary income tax returns for calendar year filers.
Homestead Declarations and Property Tax Credit Claims should also be filed no later than April 18. Filings received after April 18 until October 16 may be subject to late fees assessed by a taxpayer’s town and, under current law, filings received after October 16 cannot be accepted.
Vermonters should be aware that new or expanded credits and deductions this year may increase their refund. The tax reduction bill (Act 138) passed by the Legislature last year and signed by the Governor includes the following changes:
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The new Vermont Child Tax Credit gives eligible Vermont filers with children aged five or younger a $1,000 per child refundable tax credit.
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Vermont’s Child and Dependent Care Credit has been increased to 72 percent of the federal credit and is fully refundable for all qualifying Vermont filers.
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Vermont’s Earned Income Tax Credit has increased to 38 percent of the federal credit.
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A new Vermont student loan interest deduction allows eligible filers to deduct all student loan interest paid.
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An expansion of the Vermont income tax exemption for Social Security benefits.
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New partial exemptions for military retirement income and income from the Civil Service Retirement System.
Taxpayers are strongly encouraged to file all documents electronically and to request a direct deposit if they are owed a refund. Many Vermonters are eligible to file their taxes electronically for free, and filing electronically can help to expedite receipt of their refund. Visit tax.vermont.gov to learn about free file offers.
Those who are unable to meet the April 18 personal income tax filing deadline may extend their filing to October 16, but taxpayers must still pay any tax owed by April 18 to avoid penalties and interest.
Taxpayers having trouble filing may call (802) 828-2865 for assistance. Information on upcoming tax filing deadlines and opportunities for taxpayers are available on the department’s website.