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Category: Vermont

Vermont Payments

Real Estate Withholding

If you sold real estate in VT during the year and the buyer withheld VT income tax from the sales price, enter the amount withheld shown on your Form RW-171, VT Withholding Tax Return for Transfer of Real Property, Schedule A, Line 12. Keep a copy of the first two pages of your Federal income tax return and any Federal schedule that documents the income or loss from the VT sale.

Note: It is the Tax Department’s practice to allocate real estate withholding in proportion to each seller’s share of the proceeds. If you claim a credit of Vermont real estate withholding on your Vermont Income Tax return that is not proportionate to your share of the proceeds as reported on your Federal Income Tax Return, the Department may adjust the amount of real estate withholding claimed on your Vermont return. If you believe you are entitled to claim real estate withholding in an amount that is not proportionate to your share of the proceeds, you will need supporting documentation.

For installment sales: You must report the balance of your gain to VT on future returns or elect to pay Vermont 6% tax on the entire gain in the year of the sale. If you choose the 6% tax, you will need to supply a letter with the return asking for the "6% Tax Elect Out for VT Purposes," attach a copy of the Federal Form 6252, and do not include the gain from the sale on Schedule IN-113, Line 7.

Nonresident Shareholder Payments (Business Entity Payments for Nonresident Partner, Member or Shareholder)

NonResidents Only - Enter the estimated income tax payments made on your behalf by a partnership , limited liability company, or S corporation toward your current year VT income tax. The entity would have made these payments on Form WH-435. If the payments exceed your VT income tax liability, you may be entitled to a refund. Title 32 V.S.A. sections 5914 and 5920 allow the entity, at its option, to recover any excess payment from you.

Amount of State Refund you would like to Apply to 2014 Estimated Tax Payment

Enter the amount of refund you want credited toward your 2012 income tax. Your income refund will be reduced by this amount.

Amount of State Refund you would like to Apply to 2013 Property Tax Bill

If your property is a declared homestead and you filed the 2013 income tax return on or before October 15, 2014, you may elect to use all or part of your refund to pay your homestead property tax bill. Your income refund will be reduced by this amount. The State will include an additional 1% to the refund credited to your property taxes.