IN-119: Vermont Tax Adjustments and Nonrefundable Credits (2025)
Vermont · Vermont Department of Taxes · Used for tax years 2025
The 2025 Vermont Schedule IN-119 reports adjustments to Vermont income tax and nonrefundable credits. It calculates additions, subtractions, and credits to enter on Form IN-111 and is included with that return.
Who files this form
Schedule IN-119 is used to report Vermont tax adjustments and nonrefundable credits with Form IN-111 for tax year 2025.
The schedule covers additions to Vermont tax, subtractions from Vermont tax, and credits such as Vermont Higher Education Investment, Charitable Housing, and Research & Development.
What you'll need
Depending on the adjustments or credits you report, the schedule refers to:
- Federal Form 1040 for tax on qualified plans, including IRA, HSA, and MSA, 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 worksheet in the instructions for the Vermont Farm Income Averaging Credit.
You will also need your taxpayer name and Social Security number. For credits earned through an S-Corporation, LLC, or partnership, provide the entity’s name and federal employer identification number (FEIN).
The referenced instructions and worksheet were not provided with this text.
How to file
- Include Schedule IN-119 with Form IN-111.
- Print in blue or black ink.
- Enter the net adjustment from Part I, Line 15, on Form IN-111, Line 9. This amount can be negative.
- Enter the total credits from Part II, Line 9, on Form IN-111, Line 18.
The supplied form does not give a mailing address or e-filing directions.
Common mistakes
- Do not leave Schedule IN-119 out of your Form IN-111 filing. The form says to include it.
- Use blue or black ink when printing entries.
- For credits from more than one business entity, complete a separate Schedule IN-119 for each entity.
- Do not overlook the prior approval requirement for the Affordable Housing credit on Part II, Line 5. Approval is required from the Vermont Housing Finance Agency.
Questions people ask
Can my net adjustment be a negative number?
Yes. Part I, Line 15, subtracts Line 14 from Line 7 and expressly allows a negative result. Enter the result on Form IN-111, Line 9.
How is the Vermont Higher Education Investment credit calculated on the form?
Part II, Line 1, multiplies the 2025 contribution eligible for credit by 0.10, or 10%.
Where do I report credits earned in 2025 and carryforwards?
For Part II, Lines 2 through 8, enter credits earned in 2025 in Column A and carryforwards in Column B. Add them to get Column C.
What if my credits come from more than one business entity?
Complete a separate Schedule IN-119 for each entity. For credits earned through an S-Corporation, LLC, or partnership, enter the entity’s name and FEIN.