WH-435: Estimated Income Tax Payments for Nonresident Shareholders, Partners, or Members (2024)
Vermont · Vermont Department of Taxes · Used for tax years 2024
Form WH-435 is Vermont’s payment voucher for pass-through entities making estimated income tax payments on behalf of nonresident shareholders, partners, or members. It records the business’s identifying information, tax year, and payment amount.
Who files this form
Pass-through entities must make estimated income tax payments on behalf of shareholders, partners, or members who are Vermont nonresidents.
- Use Form WH-435 when a payment is due. Do not file it if no payment is due.
- C-corporations should not use this form. Entities filing Form CO-411, Corporate Income Tax Return, should use Form CO-414 for estimated payments.
When it's due
For calendar-year entities, estimated payments for tax year 2024 are due:
- April 15, 2024
- June 15, 2024
- September 15, 2024
- January 15, 2025
For fiscal-year entities, payments are due on the 15th day of the 4th, 6th, and 9th months of the fiscal year, and the 1st month of the following year.
A safe harbor catch-up payment may be made by the original, not extended, due date of the entity return. Catch-up payments made after that date are subject to late payment penalties and interest.
What you'll need
Have the following information ready to complete the voucher:
- Business name and address
- Federal Employer Identification Number (FEIN)
- Beginning and ending dates of the entity’s tax year, in YYYYMMDD format
- Payment amount in whole dollars
The Vermont-sourced income used to calculate the payment is figured on Schedule BI-472, Vermont Non-Composite, or Schedule BI-473, Vermont Composite. Include a check with the voucher if mailing your payment.
How to file
For a paper payment, print in blue or black ink. Enter the business information, tax-year dates in YYYYMMDD format, and payment amount in whole dollars.
Send the voucher and check to:
Vermont Department of Taxes
133 State Street
Montpelier, VT 05633-1401
If filing electronically, do not submit a paper form. The supplied text does not give electronic filing steps.
For information, visit tax.vermont.gov or call (802) 828-5723.
Common mistakes
- Filing a zero-payment voucher. Do not file Form WH-435 if no payment is due.
- Sending a paper form after filing electronically. The form says not to submit both.
- Using WH-435 for a C-corporation. Use Form CO-414 if filing Form CO-411.
- Entering cents. The payment amount must be in whole dollars.
- Crediting a catch-up payment to the wrong fiscal year. Be sure to identify the correct year.
- Waiting until an extended return deadline to make a catch-up payment. Payments after the original return due date are subject to late payment penalties and interest, separate from underpayment penalties and interest.
Questions people ask
How is the required annual payment calculated?
Apply 6.6% to Vermont-sourced income distributed or allocable to nonresident shareholders, partners, or members. This includes guaranteed partnership payments. The income is calculated on Schedule BI-472 or BI-473.
What if the estimated payment amount is $500 or less?
If either the current-year or prior-year total estimated payment amount is $500 or less, no underpayment interest or penalty is assessed. A single payment must still be made by the fourth due date.
What is required for a valid safe harbor catch-up payment?
To eliminate underpayment interest and penalty, the taxpayer must have made four quarterly payments covering at least the lesser of 90% of the current year’s tax liability or 100% of the prior year’s tax liability. The catch-up payment must be made by the entity return’s original due date and credited to the correct fiscal year.
How are estimated payments applied?
Payments are distributed to nonresident shareholders, partners, and members, or applied to entity composite tax, as directed on the annually filed Form BI-471, Business Income Tax Return.