IN-117: Vermont Credit for Income Tax Paid to Other State or Canadian Province (2025)
Vermont · Vermont Department of Taxes · Used for tax years 2025
Vermont Schedule IN-117 calculates the credit for income tax paid to another state or Canadian province on income also taxed by Vermont. It reports the income taxed by both jurisdictions, the tax paid elsewhere, and the credit to enter on Form IN-111.
Who files this form
Schedule IN-117 is for Vermont residents and some part-year residents claiming a Vermont credit for income tax paid to another state or Canadian province. It covers income taxed by both Vermont and the other state or province.
Complete a separate Schedule IN-117 for each state or Canadian province.
What you'll need
Have these forms and amounts available:
- Form IN-111, including adjusted gross income on Line 1 and Vermont income tax on Line 14.
- Schedule IN-112, Part I, Lines 3, 4, 7, and 9, for the adjustments listed on IN-117.
- A copy of the other state's return or returns, which the form says to include.
- Amounts for income taxed by both jurisdictions, the listed income adjustments, and income tax paid to the other state or Canadian province.
How to file
Include Schedule IN-117 with Form IN-111. Complete a separate schedule for each state or Canadian province and include a copy of the other state's return or returns.
Print in blue or black ink. Enter your name and Social Security number, and use the standard two-letter abbreviation for the state or Canadian province on Line 1.
Follow the calculations on Lines 2 through 20. On Line 21, enter the smaller of Line 19 or Line 20. Also enter the credit on Form IN-111, Line 17.
The provided form does not give a mailing address or e-filing instructions.
Common mistakes
- Do not combine multiple states or provinces on one schedule. Use a separate IN-117 for each.
- Do not omit the required copy of the other state's return or returns.
- Do not enter more on Line 2 than the amount on Form IN-111, Line 1. If the amount for Line 2 or Line 10 is less than zero, enter zero.
- Do not let the computed credit on Line 19 exceed 100% of Vermont tax.
- Use the smaller of Lines 19 and 20 for Line 21, and remember to also enter the credit on Form IN-111, Line 17.
Questions people ask
Can this schedule be used for tax paid to a Canadian province?
Yes. Schedule IN-117 covers income tax paid to another state or Canadian province on income also taxed by Vermont.
Can I list more than one state on a single schedule?
No. Complete a separate Schedule IN-117 for each state or Canadian province.
How is the credit amount determined?
Line 19 divides Line 9 by Line 17, then multiplies the result by the Vermont income tax on Line 18. That result cannot exceed 100% of Vermont tax. The credit on Line 21 is the smaller of Line 19 or the income tax paid to the other jurisdiction entered on Line 20.
Where do I report the credit on my Vermont return?
Enter the credit from Schedule IN-117, Line 21, on Form IN-111, Line 17. Include Schedule IN-117 with Form IN-111.