When you begin your Vermont state return, you'll be asked several questions that help determine whether additional forms, credits, or calculations apply to your return. Here's what each question means and how to answer it.
Did you maintain minimum healthcare coverage throughout all of tax year?
This question asks whether you (and your spouse, if filing jointly) had qualifying health insurance coverage for the entire tax year.
Minimum essential coverage generally includes:
- Employer-sponsored health insurance
- Medicare
- Medicaid
- Marketplace (Health Insurance Exchange) plans
- Certain other government-sponsored health plans
Select Yes if you maintained qualifying coverage for all 12 months of the tax year. If coverage was not maintained for the entire year, select No and provide any additional information requested by the program.
Do you meet the definition of a qualified farmer or fisherman under 26 U.S.C. Sect. 6654(i)(2)?
The IRS provides special estimated tax payment rules for certain farmers and fishermen.
Generally, you are considered a qualified farmer or fisherman if at least two-thirds (66.67%) of your gross income for the current or prior tax year came from farming or fishing activities.
Examples include:
- Operating a farm
- Raising livestock or agricultural products
- Commercial fishing activities
Select Yes if you meet the federal definition of a qualified farmer or fisherman. Otherwise, select No.
Were the Child Care Expenses Provided by a Facility Certified by the VT Agency of Human Resources?
Vermont offers certain benefits related to qualified childcare expenses. This question helps determine eligibility for Vermont childcare-related credits.
Answer Yes if the childcare expenses you are claiming were paid to a childcare provider or facility certified by the Vermont Agency of Human Services (AHS).
Examples may include:
- Licensed childcare centers
- Certified family childcare homes
- Other Vermont-certified childcare providers
If the provider was not certified by the Vermont Agency of Human Services, select No.
Change Filing Status from MFJ to MFS for State Purposes Only
This question applies to taxpayers who filed their federal return as Married Filing Jointly (MFJ) but want or need to file their Vermont return as Married Filing Separately (MFS).
Selecting this option allows each spouse to report income, deductions, and credits separately for Vermont purposes, even though a joint federal return was filed.
Choose this option only if:
- You filed a joint federal return, and
- You meet Vermont's requirements for filing separately at the state level.
If you're unsure whether filing separately is beneficial, compare both filing methods, as changing filing status may affect Vermont tax liability, deductions, and credits.