What Is Estimated Income Tax?
Estimated income tax is the amount of Vermont tax you expect to owe for the year on income that is not subject to withholding. This includes earnings from self-employment, interest, dividends, rental income, alimony, etc. and any additions to your Vermont tax including the following:
- Qualified Retirement Plans such as Individual Retirement Accounts (IRA); Health Savings Accounts (HSA); and Medical Savings Accounts (MSA)
- Recapture of Federal Investment Tax Credit
- Vermont Tax Credit Recapture
Estimated payments are necessary on income with no withholding or insufficient withholding.
Did you Know?
Taxpayers can now use myVTax to make estimated income and return payments! Ready to get started? Log in to myVTax now.