Vermont 2025 Taxes for Immigrants: Filing Rules, Rates, and Deadlines

(VERMONT) For many newcomers, the first Vermont income tax season feels tied to everything else—lease papers, school forms, and sometimes a visa renewal. For 2025 income, Vermont’s filing deadline is April 15, 2026, and the state says most refunds arrive in 10–14 days when you e-file. Vermont uses the same basic filing rules for immigrants and U.S. citizens: if you live in Vermont or earn Vermont-source income and your income is above the filing thresholds, you file, even if you use an ITIN instead of a Social Security number. According to analysis by VisaVerge.com, steady rules in 2025 mean preparation, not policy shocks, is what saves people money and stress.

Who Vermont expects to file, no matter your passport

Vermont generally follows federal gross income filing thresholds. For 2025:

• Single filer under 65: file federally if gross income is over $14,600.
• Married filing jointly: file federally if gross income is over $29,200.

Vermont expects a state return when you meet those thresholds and you are:

• a full-year resident,
• a part-year resident, or
• a nonresident with Vermont-source income.

Most people use Form IN-111 as the main Vermont return. Part-year residents and nonresidents also use Form IN-112 to report and allocate Vermont income.

Some nonresidents can have a filing duty with Vermont gross income over $1,000 from Vermont sources, even if they do not owe federal tax. Immigration status does not change these rules: H-1B workers, F-1 students on OPT, green card holders, DACA recipients, and undocumented workers filing with an ITIN all follow the same filing test.

How Vermont decides if you’re a resident

Vermont uses a domicile concept: your main home and your intent to keep it can matter more than the exact day count.

• If you lived in Vermont all year, you’re a full-year resident and report income from all sources.
• If you moved in or out during 2025, you’re a part-year resident and usually report only the income you earned while living in Vermont.

This matters for people who relocate for work or school midyear. Example: Raj, an H-1B worker from India, moved to Burlington in June 2025 for an $80,000 job. In a typical part-year case, he reports roughly July–December Vermont wages (about $40,000) and may owe around $2,500 after credits and withholding.

Keep records that show when you moved—lease, pay stubs, and other address evidence—since Vermont can ask for proof if your address history changes.

The 2025 tax rates you’ll see on your return

Vermont taxes Vermont taxable income with four marginal rates, from 3.35% to 8.75%. Brackets were indexed slightly for inflation but the structure stayed the same.

Tax brackets (single filers and married filing jointly):

Note: a marginal rate applies only to the portion of income inside each bracket, not to the whole amount. Example for a single filer with $60,000 of Vermont taxable income: Vermont’s example math comes to $2,403.25 before credits—$1,604.65 on the first $47,900 and $798.60 on the next $12,100.

High earners (including those on H-1B visas) should check withholding to avoid surprise tax bills.

Paperwork to collect before you start

Plan to build your “tax folder” in January; employers must send W-2 wage statements by Jan. 31. For Vermont income tax, gather:

• W-2s showing Vermont withholding (often listed on line 17)
• Any 1099 forms for freelance or gig work
• Your completed federal Form 1040 numbers (Vermont starts with federal figures)
• Bank details for direct deposit (used for most refunds)
• Proof for credits, such as child care receipts

If you don’t have a Social Security number, you can file with an ITIN. If you need a new ITIN or must renew one, start early: IRS processing can take 7 weeks, so a February 2026 application can be tight. The IRS explains the process and lets you download Form W-7.

Keep copies of returns and support papers for 3–7 years, especially as audits have risen.

Step-by-step filing path, with real dates

Most filers do best when they treat the state return as the last step, not the first. Vermont’s online system can import data from common software, but you still need to check residency, Vermont-only income, and credits.

1. Late January to mid-February 2026: confirm income documents.
   • Match your W-2 and 1099 totals to your final pay stub.
   • If you changed jobs or worked in two states, list each employer and the state shown on the wage box.
2. February to March 2026: file the federal return.
   • Vermont starts with federal numbers, so finishing the federal Form 1040 first avoids rework.
3. March 2026: complete Vermont forms.
   • Most use Form IN-111.
   • Part-year residents and nonresidents use Form IN-112 to allocate Vermont-source income.
   • For Vermont additions/subtractions (for example, adding non-Vermont municipal bond interest or subtracting U.S. bond interest), use Form IN-113.
4. Before you hit submit: check credits.
   • Vermont ties several credits to federal amounts, including a 36% match of the federal Earned Income Tax Credit (EITC) and a 24% match of the federal child and dependent care credit.
   • There is also a 2025 renter credit up to $1,200 for eligible low-income filers.
5. By April 15, 2026: file and pay.
   • E-filing is the fastest route. If you mail a return, keep proof of mailing.
6. After filing: track the refund and any offsets.
   • Vermont can reduce a refund for past-due child support before sending the balance.

What Vermont reviews, and how long it can take

After you file, Vermont’s Department of Taxes checks identity, withholding, and credit claims.

• If you e-file and choose direct deposit, many refunds arrive in 10–14 days, though some filers report 2–3 weeks depending on review.
• The state’s online tools include address-history prompts that help detect part-year status and can cut delays.
• You can file, pay, and check refund status through the state portal at Vermont’s MyVTax services and forms page.

If Vermont needs more detail, it may send a letter asking for W-2 copies, proof of rent, or child care receipts. Missing the deadline can trigger penalties; the guide cites late-filing and late-payment charges that can reach 25% of unpaid tax. Interest can add 1% per month on unpaid balances.

Vermont allows extensions to October, but an extension gives you more time to file, not more time to pay.

Important: keep proof of filing and payments. Penalties and interest mount quickly, and Vermont collected $5 million in penalties last year.

Immigration and future applications: why tax compliance matters

Many immigrants worry that a mistake on a state return could affect immigration matters. Vermont does not ask for your visa type to decide tax, but paying and filing on time can help later when you must show steady work history and “good moral character” in federal immigration filings.

• Keep your returns, W-2s, and proof of payment with other immigration records (I-94s, approval notices).
• If you can’t pay the full bill by April 15, 2026, file the return anyway and contact the state about payment options.

The guide notes Vermont may offer installment plans, including 0% interest if the balance is under $25,000, and can set plans for larger balances when you stay in touch.

Vermont reports it accepts ITIN filings in 2025. For free help, look for VITA sites if your income is under $64,000 in Vermont.