As Vermont taxpayers, we are now able to save on our taxes when making monetary donations, such as payroll deductions to organizations through VtSHARES. To learn more about the Charitable Contribution Tax Credit, please see below.
What is the Charitable Contribution Tax Credit?
The Working Families Taxpayer Protection package was passed during the 2018 legislative session as part of Act 11 and went into effect on July 2, 2018. This act created a nonrefundable charitable contribution tax credit to be deducted from tax owed.
Vermont taxpayers who take advantage of the credit may deduct five percent of the first $20,000 in eligible charitable contributions made during the taxable year from that year’s taxes. This law is retroactive to Jan. 1, 2018.
Do I qualify for the Charitable Contribution Tax Credit?
Vermont taxpayers who make eligible charitable contributions qualify to receive this tax credit, regardless of whether they itemize on their federal tax return.
The Department of Taxes encourages taxpayers making eligible charitable contributions in 2018 to save all related documentation as the Department may request it after filing. Vermont’s 2018 individual income tax forms will include easy-to-follow instructions to claim this tax credit.
How do I find out more about the Charitable Contribution Tax Credit?
For more information on this credit, visit one of these websites:
You also may call the Vermont Department of Taxes at (802) 828-2865. The Vermont Department of Taxes recommends that taxpayers consult a tax professional for more individual guidance.
How can I benefit from the Charitable Contribution Tax Credit?
Vermont taxpayers may now deduct 5 percent of the first $20,000 in eligible charitable contributions made during the taxable year from their tax liability for that year. Vermont’s 2018 tax forms will include easy to follow instructions regarding how Vermonters can claim this Tax Credit.
Will I receive a receipt for my donation through VtSHARES?
Yes, you will receive an email confirmation once you complete your online pledge that will serve as your receipt for tax purposes. Please be sure to keep that email for tax filing.