How to File for a Vermont Tax Extension

A tax extension provides more time to submit your income tax return, but it does not postpone the deadline for paying any taxes you may owe. This is for taxpayers who need additional time to gather documents and complete their paperwork. An extension shifts the filing due date, but the obligation to pay your estimated tax liability by the original deadline remains.

Understanding Vermont’s Extension Rules

Vermont offers a six-month filing extension. If you have filed for a federal extension with the Internal Revenue Service (IRS), Vermont automatically grants you an equivalent state extension. This automatic extension applies only to the filing deadline.

If you expect to owe state income tax, you must submit your payment by the original April due date by paying online through myVTax or by mailing Form IN-151. If you do not expect to owe any Vermont tax, you do not need to file anything for the extension. If you only need an extension for your Vermont return, you must file Form IN-151 by the original tax deadline.

Information and Payment for an Extension

Even with a filing extension, your tax payment is due by the original April filing deadline. You must estimate your total tax liability for the year by gathering financial documents like W-2s and 1099s, calculating your expected income, and subtracting any applicable deductions and credits.

The state provides Form IN-151, the Application for Extension of Time to File, which is used to submit a payment or to request a Vermont-only extension. You will use your estimates to complete the form, which requires your expected tax liability and the amount you are paying. You must pay at least 90% of the tax you will owe for the year to avoid potential penalties and interest. The form requires your name, address, Social Security number, and the estimated tax due.

How to Submit Your Extension and Payment

Once you have completed Form IN-151, you have two methods for submission. The first is to mail the form with a check or money order for the amount of tax you are paying. The check should be made payable to the Vermont Department of Taxes and mailed to the Vermont Department of Taxes, P.O. Box 1779, Montpelier, VT 05601-1779.

Alternatively, you can submit your payment electronically through the state’s online portal, myVTax. On the portal, you can make an extension payment and follow the prompts to enter your information and payment details. This method provides immediate confirmation that your payment has been received.