Tax Adjustments

Interest and dividend income from non-Vermont state and local obligations are taxable in Vermont. A Vermont obligation is one from the state of Vermont or a Vermont municipality.

This may have been paid directly to you or through a mutual fund or other legal entity that invests in Vermont state and local obligations. If you receive this income from a mutual fund that has only a portion of its assets invested in Vermont state and local obligations, use only the amount for the Vermont obligation(s).

Additions to VT Tax:

  • Tax on Qualified Plans including Individual Retirement Accounts (IRA), Health Savings Accounts (HSA), and Medical Savings Accounts (MSA)
  • Recapture of Federal Investment Tax Credit
  • Lump Sum Distributions (federal return)
  • Recapture of Vermont Tax Credits
    • Recapture occurs when a previously claimed credit is changed

Subtractions from VT Tax: