The 2023 tax season officially opens Jan. 23, at both the federal and state levels. This is the date that the IRS and Vermont begin accepting personal income tax returns for tax year 2022.
The department offers the following 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.
File electronically through a commercial software vendor. Filing electronically reduces the risk of errors and significantly speeds up refund processing time. Last year, taxpayers who e-filed their returns saw their refunds on average in less than three weeks, while the average refund time for paper filers was over eight weeks.
Many Vermonters are eligible for free online tax preparation software through the Free File Alliance but don’t know it. Visit the list of provider links on the department’s website at tax.vermont.gov/free-file to see if you qualify.
After you have filed, you can check online at myvtax.vermont.gov for the status of your tax refund, homestead declaration, property tax credit, and renter credit. This year there are new and expanded tax credits available to a wide variety of Vermont filers including:
A new Vermont Child Tax Credit offers filers with children age five or younger a $1,000 per child refundable tax credit. Filers with less than $125,000 of income are eligible for the full credit, and filers with income up to $175,000 are eligible for a partial credit.
The Vermont Child and Dependent Care Credit has increased to 72% of the federal credit and is fully refundable for all qualifying Vermont filers.
The Vermont percentage of the Earned Income Tax Credit has increased to 38% of the federal credit.
Even Vermonters who are not required to file a tax return because their income is below the filing requirement may want to consider filing if they qualify for these credits. There are also new and expanded deductions and exemptions available for those paying student loan interest and for a variety of retirees. Visit tax.vermont.gov to learn more about the details and eligibility requirements of these credits and deductions.
The 2023 filing deadline for personal and corporate income tax returns, Homestead Declarations and Property Tax Credit claims, and fiduciary income taxes is April 18.
