Vermont Additions to Income
Interest and Dividends from Federal Tax-Exempt Bonds
Enter the total interest and dividend income received from all state and local obligations exempted from Federal tax.
Income from Vermont State Bonds and Obligations
Enter the interest and dividend income from VT obligations. This may have been paid directly to you or through a mutual fund or other legal entity that invests in VT states and local obligations. If you receive this income from a mutual fund that has only a portion of its assets invested in VT state and local obligations, enter only the amount for the VT obligation(s).
Federal Bonus Depreciation
The Small Business Jobs Act of 2010 extended the bonus depreciation to property put into service in 2011. Vermont does not recognize the bonus depreciation for Vermont income tax purposes. The depreciation must be recalculated without the bonus depreciation using standard MACRS (Modified Accelerated Cost Recovery System) method. Enter the difference between the depreciation calculated by standard MACRS methods and the depreciation calculated using the Federal bonus depreciation for assets placed in service in 2011.
State and Local Income Tax Add Back: Form IN-154
Schedule IN-154 is used if you filed Federal Form 1040 Schedule A (Itemized Deductions) for tax year 2011 and the deduction for state/local income taxes is more than $5,000. Also, if you received a 2010 refund reported on Form 1040 line 10, use Form IN-154 to adjust the amount added back last years.