Vermont Personal Income Tax Returns Accepted Jan 26, Deadline April 15
Summary
The Vermont Department of Taxes announced that it will begin accepting personal income tax returns for tax year 2025 on January 26, 2026, with a filing deadline of April 15, 2026. The announcement also highlights expanded tax credits and exemptions for Vermonters, including increased child tax credits, expanded earned income tax credits, and new exemptions for Social Security and military retirement benefits.
What changed
The Vermont Department of Taxes has announced the opening of the 2025 tax season, with both the IRS and the state accepting personal income tax returns starting January 26, 2026. The filing deadline for personal and corporate income tax returns, Homestead Declarations, Property Tax Credit claims, and fiduciary income taxes is April 15, 2026. This announcement also details several legislative changes enacted by Act 71 of 2025, which expand tax credits and exemptions for Vermonters. These include an increase in the age eligibility for the Vermont Child Tax Credit, expansion of the Earned Income Tax Credit (EITC) for workers without children, increased income eligibility limits for Social Security income exemptions, new exemptions for military retirement and survivorship benefits, and a new Vermont Veteran Tax Credit.
Taxpayers are advised to wait for all necessary tax documents before filing to avoid refund delays and encouraged to file electronically for faster processing. Vermonters with incomes up to $89,000 may be eligible for free federal and state tax filing through the IRS Free File program. Compliance officers should ensure that tax preparation processes and systems are updated to reflect the new credits and exemptions, particularly the expanded child tax credit, EITC, Social Security income exemption limits, military retirement benefits exemption, and the new veteran tax credit, to ensure accurate filing for affected individuals.
What to do next
- Ensure all W-2, 1099, and other necessary tax documents are received before filing.
- Advise taxpayers to file electronically for faster refunds.
- Update systems and processes to account for expanded tax credits and exemptions under Act 71 of 2025.
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Commissioner of Taxes Announces Vermont Now Accepting Personal Income Tax Returns
Mon, 01/26/2026 - 12:00
For Immediate Release
Montpelier, Vt.- The 2025 tax season officially opens Jan. 26, 2026, when the IRS and the Vermont Department of Taxes will begin accepting personal income tax returns for tax year 2025. The filing deadline for personal and corporate income tax returns, Homestead Declarations, Property Tax Credit claims, and fiduciary income taxes is April 15, 2026.
“While most of us don’t exactly look forward to filing our taxes, we want Vermonters to know that our team at the Department of Taxes is here and ready to help them as they navigate the process,” said Commissioner of Taxes Bill Shouldice.
The Vermont Department of Taxes offers three key tips to make filing and getting your refund easier and faster:
- Wait to receive all W-2 forms, 1099 forms, or any other necessary tax documents before filing. Filing too early without all your documentation is one of the most common reasons a tax refund is delayed.
- Filing electronically through a commercial software vendor reduces the risk of errors and speeds up refund processing time. On average, taxpayers who e-file receive their refunds nearly three times faster than paper filers.
- Vermonters with incomes up to $89,000 may be eligible to file their federal and State taxes for free using commercial software through the IRS’s Free File program. See the Department of Taxes website for information on vendors offering Vermont tax returns at no cost through Free File. Thanks to Act 71 of 2025, Vermonters will be seeing expanded credits and exemptions this year when they file their taxes.
- The maximum age where children are eligible for the Vermont Child Tax Credit has increased from 5 to 6. The credit is up to $1,000 per child.
- Vermont’s Earned Income Tax Credit (EITC) has been expanded for Vermont workers without children, now matching 100% of the federal EITC.
- The income eligibility limits for the tax exemption of Social Security income have increased to $65,000 for single filers and $80,000 for couples filing jointly.
- Military retirement and survivorship benefits for retirees and surviving spouses are now exempt for incomes up to $125,000, partially exempt up to $175,000.
- The new $250 Vermont Veteran Tax Credit is now available for income-eligible veterans. “These credits and exemptions are for Vermont’s young families, for our workers, our retirees on a fixed income, and our veterans,” said Shouldice. “In fact, for many taxpayers, Vermont's refundable credits mean the State could owe you money! We encourage all Vermonters to file and claim their credits to keep a little more money in their pockets this tax season."
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