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Vermont Personal Income Tax Reform Plan Announced – Tax & Accounting Blog

Vermont has announced a personal income tax reform plan in response to the federal Tax Cuts and Jobs Act (TCJA). The TCJA revised parts of the federal personal income tax structure that flow through to Vermont. Accordingly, to stabilize the state’s tax system, the Vermont reform plan would make various changes, including those discussed below.

Personal exemptions: Under the plan, personal exemptions would be reintroduced, at $4,000 each.

Deductions: The plan would create deductions equal to $6,000 for single filers, $12,000 for joint filers, and $9,000 for heads of households.

Rates: The plan would keep tax brackets the same, while lowering marginal rates.

Charitable contribution credit: A 5% tax credit would be created for charitable contributions.

VTax Connect, Vermont Department of Taxes, February 6, 2018

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Author: CCHTaxGroup

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