CORONAVIRUS (COVID-19) UPDATE: INFORMATION FOR TAXPAYERS

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. We’re here to help!

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.

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. If your business has not yet considered applying for an Economic Recovery Grant, we encourage you to do so!

Also, if you have applied and received a grant, we encourage you to review the eligibility requirements on this page and in our attached FAQs again as you may be eligible for additional funds. – Commissioner Craig Bolio

LAST UPDATED ON SEPTEMBER 01, 2020 AT 9:00 AM

Economic Recovery Grants
Funding Through Municipal Grants
Temporarily Living and Working Remotely in Vermont
Meals and Rooms Tax and Sales and Use Tax
Extended Due Dates
Frequently Asked Questions
Economic Impact [Stimulus] Payments
Be Alert to Scams
Important Delays, Closures, and Suspended Services
Electronic Filing and Online Services 
Hours and Days of Operations
Best Way to Contact Us
News Releases
Information for Towns
Other Resources


Economic Recovery Grants

The Department of Taxes is not currently taking new applications for the Vermont Emergency Economic Recovery Grant Program. The Department expects to be able to fully fund most or all of the existing new and supplemental applications that have been received to date. The Department has not yet begun issuing supplemental awards for recipients who originally received $50,000, but hopes to within the next couple of weeks.
The Department will reopen applications if it is determined the Department has additional funding from the original appropriations or if additional funding is appropriated by the legislature. Additional information about resources available for businesses and individuals to support Vermonters dealing with the COVID-19 pandemic is available at the Agency of Commerce and Community Development’s website at: https://accd.vermont.gov/covid-19

Grants Reporting

FAQs and Help

What if I don’t have a meals and rooms or sales and use tax account, are there grants available for my business?

Yes, Act 115 and Act 137 provide funding for additional grants administered by the Vermont Agency of Commerce and Community Development. Information about these grants is available at https://accd.vermont.gov/covid-19/economic-recovery-grants. For additional information view webinars on the ACCD website.

Contact Us

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


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

Read our Frequently Asked Questions for more information

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 are required to continue to collect meals and rooms and sales and use taxes as they normally would. Taxes collected from customers in April should be remitted by May 25 or they may be subject to interest and penalty.

The Department is continuing to work closely with the office of Gov. Scott and the Vermont Legislature to determine next steps in this challenging and unprecedented time.


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

Read our Press Release

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:

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 please click the green button below.

For additional information see the IRS website


Be Alert to Scams

The IRS is seeing a significant increase in criminals trying to gather information needed for the stimulus payments. Both individual citizens and tax preparers are being targeted.

The messaging from these fraudsters includes variations of language such as "in order to receive your/your client's stimulus payment via direct deposit, we need you to confirm the banking information." In this way, they are gathering personal information via telephone or directing victims to click on a link that takes them to a fake website where they enter their banking information.

Protect yourself! 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. 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.

If you receive such a call, text, or email please follow the following guidelines:

  • If you receive a phone call, don’t talk with them. Hang up!
  • If you receive a text or email, don’t click the link. Hit delete!

Reporting Scams


Important Delays, Closures, and Suspended Services

Protecting the Public and Our Employees

In response to the Coronavirus (COVID-19) emergency, the Vermont Department of Taxes is taking extra steps to ensure the safety and wellbeing of the public and our staff, while ensuring the timely continuation of the processing of tax returns and service provided for all taxpayers during this trying period.

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. Although our building is temporarily restricted to the public, please be assured that the Vermont Department of Taxes is continuing to process tax returns and refunds for Vermonters.

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 Trainings and Events

Please check our Municipal Official Training and Certification Program page for up to date information on course cancellations https://tax.vermont.gov/municipal-officials/education. 

In-Person Tax Preparation Services are Closed

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.


Electronic Filing and Online Services are Available

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


Best Way to Contact Us: Send a Secure Message

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.

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


News Releases


Other Resources