How does Vermont tax remote workers?

There are a few situations to consider. You may fall into more than one category.

1. I lived in Vermont.
• If you're considered a full-year or part-year resident of Vermont, you'll be taxed on all income earned from any source during your time of residency. Be sure to file the appropriate return.
2. I worked remotely from Vermont.
• Vermont taxes income earned for personal services performed while in Vermont (even if you're a nonresident). This includes remote work for an employer or clients based outside Vermont if you were physically in the state while doing the work.
• You may be able to claim a credit for taxes paid to another state on your resident return for any income required to be reported in multiple states.
3. My employer was based in Vermont.
• If your employer was based in Vermont, they may have withheld Vermont taxes from your Vermont wages as shown on your Form W-2. However, if you didn't live or physically work in Vermont, you won't owe Vermont taxes on those wages and can file a nonresident return to claim a refund of those withholdings.
• If your employer didn't withhold Vermont taxes and you were a nonresident of Vermont, you probably don't need to file a Vermont return at all unless you otherwise have a Vermont nonresident filing requirement.

If your wages were minimal and you didn't do any other business in Vermont, it's possible you'll be exempt from filing regardless of residency. See the Vermont IN-111 instructions for more information.