Retirement income in Vermont
Varies
Does Vermont Tax Retirement Income?
Short answer: Yes. Private pensions and 401(k)/IRA withdrawals are taxed with no general retirement exclusion. The Vermont DOR page says AGI up to $60,000 single / $75,000 joint, while the statute describes a phase-out between $55,000–$65,000 single / $70,000–$80,000 joint.
Government pensions: Up to $10,000 of federal CSRS benefits, or of other government contributory pensions not covered by Social Security, may be excluded, subject to income limits. Taxpayers must choose only one of Vermont's retirement exclusions (Social Security, military, CSRS, or other). Pensions, traditional IRA and 401(k) withdrawals are taxable federally either way; Roth withdrawals after 59½ (5-year rule met) are tax-free.
Records to keep: Keep your state return, W-2s and 1099s (1099-R, SSA-1099), and any state credit worksheets. Check your state revenue department's current-year instructions before you file.
Retirement income in Vermont
Varies
Individuals / Personal Taxes
Yes. Private pensions and 401(k)/IRA withdrawals are taxed with no general retirement exclusion. The Vermont DOR page says AGI up to $60,000 single / $75,000 joint, while the statute describes a phase-out between $55,000–$65,000 single / $70,000–$80,000 joint.
Business justification
Yes. Private pensions and 401(k)/IRA withdrawals are taxed with no general retirement exclusion. The Vermont DOR page says AGI up to $60,000 single / $75,000 joint, while the statute describes a phase-out between $55,000–$65,000 single / $70,000–$80,000 joint. Government pensions: Up to $10,000 of federal CSRS benefits, or of other government contributory pensions not covered by Social Security, may be excluded, subject to income limits. Taxpayers must choose only one of Vermont's retirement exclusions (Social Security, military, CSRS, or other). Pensions, traditional IRA and 401(k) withdrawals are taxable federally either way; Roth withdrawals after 59½ (5-year rule met) are tax-free.
Category
- Personal Tax Deductions