If you are a non-resident but you are temporarily living and working in Vermont, you have an obligation to pay Vermont income taxes on the income earned while you were living and performing work in Vermont. This is true even if you were in Vermont due to the COVID-19 pandemic, and regardless of whether your employer is located inside or outside of Vermont.
Laws regarding taxation of income earned while living in Vermont have not changed. Individuals are subject to Vermont income tax under two circumstances:
- they are residents of Vermont, either by domicile or presence in the state for more than 183 days; or,
- they earn Vermont income.
The pandemic caused some individuals to alter their living situation and/or work location. Based on your living and working situation you may be required to pay income tax to the State of Vermont.
The Department recommends that you consult your tax preparer to discuss your specific living and working situation.
Residency is established by domicile or by maintaining a home in Vermont and being physically present within the State for more than 183 days per year. This is true even if the taxpayer has a “domicile” in another state.
Domicile means the place where an individual has a true, fixed permanent home, and to which place, whenever the person is absent, he or she has the intention of returning. An individual may reside in several places in a year, but at no time can he or she have more than one domicile. Domicile is not limited to a specific structure but refers rather to a place or an area to which the individual expects to return.
To read some helpful Frequently Asked Questions please click here .
For more information please visit: tax.vermont.govVermont department of taxes