Taxable income is defined in 32 V.S.A. § 5811(21) as federal taxable income reduced by the Vermont standard deduction and personal exemption(s) and modified by with certain additions and subtractions. For information on income that is taxable and nontaxable at the federal level, see IRS Publication 525, Taxable and Nontaxable Income.
Use Schedule IN-112, VT Tax Adjustments and Credits to calculate additions and subtractions to taxable income.
To learn more about Vermont income tax credits and other adjustments to tax liability please see tax credits available to individuals.