Instructions for Schedule IN-117 Vermont Credit for Income Tax Paid to Other State or Canadian Province - Vermont

This document contains official instructions for Schedule IN-117 , Vermont Credit for Income Tax Paid to Other State or Canadian Province - a form released and collected by the Vermont Department of Taxes.

FAQ

Q: What is Schedule IN-117?
A: Schedule IN-117 is a form used in Vermont to claim a credit for income tax paid to another state or Canadian province.

Q: Who needs to file Schedule IN-117?
A: Vermont residents who have paid income tax to another state or Canadian province may need to file Schedule IN-117.

Q: What is the purpose of Schedule IN-117?
A: The purpose of Schedule IN-117 is to prevent double taxation by allowing Vermont residents to claim a credit for taxes paid to another jurisdiction.

Q: How do I fill out Schedule IN-117?
A: You will need to provide information about the other jurisdiction, such as the name of the state or Canadian province and the amount of tax paid. Follow the instructions on the form to complete it accurately.

Q: Can I claim a credit for income taxes paid to any state or Canadian province?
A: You can claim a credit for income taxes paid to another state or Canadian province that has an income tax reciprocity agreement with Vermont.

Q: Is there a deadline for filing Schedule IN-117?
A: Schedule IN-117 must be filed with your Vermont income tax return by the regular tax filing deadline, which is usually April 15th.

Q: Do I need to include supporting documents with Schedule IN-117?
A: You should keep copies of any tax returns and other documents from the other jurisdiction that show the taxes you paid. You may be required to submit them if requested by the Vermont Department of Taxes.

Q: What happens if I don't file Schedule IN-117?
A: If you fail to file Schedule IN-117 when required, you may not be able to claim a credit for taxes paid to another jurisdiction and may end up paying taxes twice on the same income.