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Category: Vermont

Vermont Subtractions from Income

Military Pay

Enter the amount of VT exempt military pay received in 2013 that is included in your Federal adjusted gross income. Exempt military pay is:

  • Wages earned from the armed services for full-time active duty outside of VT.
    Supporting Documents Required: Copy of active duty orders.
  • Up to $2,000 for National Guard or U.S. Reserve training pay earned in VT if your adjusted gross income for tax year 2013 is less than $50,000.
    Supporting Documents Required: Copy of DFAS form or certification statement from unit that all training was completed during the calendar year.
  • Student loan repayment can be taken only if the amount is included in your adjusted gross income. Enter the repayment benefit made under 10 U.S.C. Chapters 109 and 1609 for 2013 year.
    Supporting Documents Required: Certification statement from armed services showing your name, address, social security number, amount of student loan repayment, and payment date.

Deployed members of the National Guard or U.S. Reserve may be eligible for exemption of both full-time military pay and monthly training. Persons assigned by their employer to work on a military project are not members of the armed services.

Federal Employment Opportunity Credit

Repealed July 1, 2013. Enter the amount of wages or expense required to be added back to Federal AGI under IRC Sections 280C or 4 up to July 1.

Railroad Retirement Income

Enter the amount you received in 2013 for Regular Railroad Retirement Benefits (Tier 1) and Supplemental Railroad Annuity Payments (Tier 2). This income is taxable at the Federal level, but exempt from VT income tax. If you receive social security that includes Tier 1 or Tier 2 benefits, enter only the portion included in your Federal adjusted gross income.
Supporting Documents Required: Copy of 1099, 1099RB, WP-4 or any other document you received showing payment of these benefits.

VT State Payment for Disabled Person(s)

Enter the amount paid by the State of VT to a family for the support of an eligible person with a developmental disability, as defined in 18 V.S.A. §8722(2). This exclusion does not apply to income of caretakers or contractors hired by the family or guardian of the person with a developmental disability, even if the payment comes directly from the State. Note: This amount may be excluded only if the payment is included in your adjusted gross income.

Americans with Disabilities Credit

Enter the amount or the portion eligible for business expenses made to comply with the Americans with Disabilities Act under Internal Revenue Code §44 for a business located in VT. Supporting Documents Required: A copy of Federal Form

VT Telecommunication Authority Bond/Note Interest

Enter the amount of interest or income you received from a bond or note of:

  1. VT Telecommunications Authority;
  2. VT Student Assistance Corporation (VASC); OR
  3. VT Build America bonds is exempt from VT income tax to the extent the interest or income is included in Federal Adjusted Gross Income (AGI).

Enter the amount interest or income from these sources that is also included in your Federal AGI.

VT-Based Business Solar Energy Investment Credit Carry Forward

Unused Vermont-based business solar energy investment tax credit may be carried forward for five years following the year the credit is claimed. Go to www.tax.vermont.gov and under "Publication", see Technical Bulletin 45.

Investment Tax Credit - VT based only

This credit is limited to the amount of investment tax credit attributable to the VT-property portion.