IN-119: Vermont Tax Adjustments and Nonrefundable Credits (2024)
Vermont · Vermont Department of Taxes · Used for tax years 2024
2024 Vermont Schedule IN-119 calculates adjustments to Vermont income tax and nonrefundable tax credits. It reports additions and subtractions to tax, credits earned in 2024, and credit carryforwards, and is included with Form IN-111.
Who files this form
Use Schedule IN-119 with Form IN-111 to report the Vermont tax adjustments and nonrefundable credits listed on the schedule.
- Part I covers additions to and subtractions from Vermont income tax, including certain federal taxes, credit recaptures, and specified credits.
- Part II covers Vermont income tax credits, including higher education investment, charitable housing, research and development, affordable housing, and other listed credits.
For credits earned through an S corporation, LLC, or partnership, enter the entity’s name and FEIN. If you have credits from more than one business entity, complete a separate IN-119 for each entity.
What you'll need
Have your taxpayer name and Social Security number ready, along with the forms and information that apply to your adjustments or credits:
- Form IN-111, Vermont Income Tax Return. The Part II tax credit worksheet uses amounts from Lines 16 and 17.
- Federal Form 1040 for tax on qualified plans, including IRAs, HSAs, and MSAs, and recapture of the federal investment tax credit.
- Federal Form 4972 for tax on lump-sum distributions.
- Federal Schedule R for the credit for the elderly or the disabled.
- The farm income averaging worksheet referenced in the instructions, if claiming that credit. That worksheet is not included in the supplied text.
- Applicable credit information, including eligible higher education contributions, credits earned in 2024, and carryforward amounts.
- The business entity’s name and FEIN, if credits were earned through an S corporation, LLC, or partnership.
How to file
Include Schedule IN-119 with Form IN-111. If completing it by hand, print in blue or black ink.
- Transfer the net adjustment from Part I, Line 15, to Form IN-111, Line 9.
- If no credit is claimed on Part II, Line 10, transfer Part II, Line 9, to Form IN-111, Line 18.
- If using the Part II tax credit calculation worksheet, transfer its Line 19 amount to Form IN-111, Line 18.
The supplied form does not provide a mailing address or e-file directions.
Common mistakes
- Leaving out the schedule: The form says to include IN-119 with Form IN-111.
- Using the wrong ink: Print in blue or black ink.
- Combining credits from multiple business entities on one schedule: Complete a separate IN-119 for each entity and enter its name and FEIN.
- Claiming the affordable housing credit without prior approval: Part II, Line 5, requires prior approval from the Vermont Housing Finance Agency.
- Treating every calculation as nonnegative: Part I, Line 15, can be negative. Part II, Line 15, cannot be less than zero.
Questions people ask
Can my net Vermont tax adjustment be negative?
Yes. Part I, Line 15, is Line 7 minus Line 14, and the form expressly allows a negative result. Enter it on Form IN-111, Line 9.
How is the higher education investment credit calculated on this form?
Part II, Line 1, multiplies the 2024 contribution eligible for credit by 10%. The form refers you to the instructions for eligibility details, which are not included in the supplied text.
Where do I enter credit carryforwards?
For Part II, Lines 2 through 8, enter credits earned in 2024 in Column A and carryforwards in Column B, then add them in Column C. The Vermont-based solar energy credit carryforward has a separate entry in Part I, Line 13.
What if I claim the Vermont Entrepreneur’s Seed Capital Fund credit?
Enter that credit on Part II, Line 10, and use the tax credit calculation worksheet. Line 17 takes the lesser of the Line 10 credit or 50% of the remaining tax calculated on Line 15. Transfer the final amount from Line 19 to Form IN-111, Line 18.