Vermont introduces new social security exemption

News

Vermont social security beneficiaries will see reduced tax liabilities.

It’s due to a new exemption for lower and middle income Vermonters who are retired or disabled. The plan excludes all or part of Vermonters federally taxed social security benefits.

For single, separated, heads of household and widowers with an income of $45,000 or less, the exemption applies in full.

“We’ve expanded that exemption quite a bit so now the way it will work is that the taxable portion goes through a Vermont based calculation to see if all or some of it is additionally tax exempt in Vermont,” explained Kaj Samsom, Vermont Tax Commissioner.

Prior to the exemption, Vermont was one of only four states to tax social security benefits at the same level of the federal government.

According to the Governor Phil Scott’s office, the new law reduces personal income taxes by $5 million for social security recipients.

The new exemption does not exclude other types of income and is in effect for the 2018 tax year.

Copyright 2021 Nexstar Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

Trending

Trending Stories

Latest Coronavirus Headlines

More Coronavirus

SkyTracker Weather Blog

More SkyTracker Blog