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State Filing Requirements

Vermont State Filing Applies to These Information Returns And Forms

Form 1099-MISC

Miscellaneous Information

A Vermont copy of Form 1099-MISC is required when Vermont income tax was withheld, or when a federal Form 1099-MISC was filed for a nonresident for services performed in Vermont. For tax year 2026, most categories use a $2,000 threshold, though royalties remain reportable at $10, and gross proceeds paid to attorneys or fish payments remain at $600.

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Form 1099-NEC

Nonemployee Compensation

A Form 1099-NEC is required when Vermont income tax has been withheld from a federal Form 1099-NEC payment or when the recipient is a nonresident who worked in Vermont. The federal threshold for tax year 2026 is $2,000. Backup withholding is required, regardless of the amount.

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Form 1099-K

Payment Card and Third-Party Network Transactions

Vermont has a state-specific Form 1099-K rule. If a federal 1099-K has already been reported, then a state copy must also be provided. For payments made through a third -party settlement organization, Vermont uses a $2,000 threshold without requiring a minimum number of transactions, and the form must be submitted within 30 days of the IRS deadline.

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Form 1099-B

Proceeds From Broker and Barter Exchange Transactions

The Vermont copy of Form 1099-B is only required in cases where Vermont income tax has been withheld on the transaction. The federal rules determine whether broker, securities, commodities, futures, or barter exchange activity should be reported.

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Form 1099-R

Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc.

Vermont mandates that a state copy be provided whenever Vermont income tax has been withheld from a reportable distribution. For the 2026 tax year, distributions of $10 or more from pensions, annuities, retirement plans, IRAs, and insurance contracts are reportable.

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Form 1099-G

Certain Government Payments

It is necessary to provide Vermont with a state copy of Form 1099-G when state income tax has been withheld from the payment. Unemployment compensation and tax refunds are reportable at an amount of $10 or more, whereas RTAA payments, grants, and paid family leave benefits use a threshold of $2,000.

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Form 1099-INT

Interest Income

Form 1099-INT is reportable to the Vermont DOR whenever Vermont income tax has been withheld, and state reporting is required. The federal Form 1099-INT carries a $10 threshold as well as a separate $600 threshold for interest payments made in connection with a trade or business.

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Form W-2G

Certain Gambling Winnings

Form W-2G applies to gambling winnings that meet federal reporting rules. The current federal threshold is $2,000, although the filing requirement can also depend on the type of gambling and the amount won relative to the wager. If Vermont income tax was withheld on those winnings, the Vermont details must be included in the direct state filing.

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Form W-2

Wage and Tax Statement

Form W-2 with Vermont is filed to report Vermont wages and income tax withheld. These forms are filed along with the annual Form WHT-434 reconciliation to reconcile Vermont wages and withholding.

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2026TY Deadline for Filing Vermont Information Returns

Form Deadline
Vermont Forms 1099 and Form WHT-434 February 1, 2027 (January 31 falls on a Sunday, so the deadline moves to the next business day)
Vermont Form W-2 and Form WHT-434 February 1, 2027 (January 31 falls on a Sunday, so the deadline moves to the next business day)
Vermont Form 1099-K Within 30 days of your federal Form 1099-K due date

Note: Form WHT-434 is Vermont's annual withholding reconciliation transmittal for Forms W-2 and/or 1099. It has to be filed by February 1, 2027.

Filers who are filing 10 or more combined W-2 and 1099 forms for tax year 2026, Form WHT-434, and the accompanying forms must be filed electronically. Payroll filing services must be electronically filed.

Vermont doesn't participate in the IRS Combined Federal/State Filing Program for W-2 and 1099 forms, so the state returns are filed directly with the Vermont Department of Taxes.

File Vermont 1099 Forms Online With Tax1099

Use Tax1099 to prepare and review Vermont 1099 forms, complete Form WHT-434, submit filings, and monitor their status.

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Vermont State Filing Scenario Based On The Form

Vermont requires a state copy of Form 1099 when the payment was subject to Vermont income tax withholding. Reporting is also required whenever federal law requires a Form 1099 for a nonresident who performed services within Vermont, even if no Vermont tax was withheld.

Form 1099-K follows an additional Vermont-specific rule. The threshold for third-party network transactions is based on the recipient's Vermont address, not on withholding.

Scenario CF/SF Participation Direct to State Filing
1099-MISC No. Vermont doesn't participate in CF/SF. A Vermont copy is required whenever the payment was subject to Vermont withholding, or whenever a federal Form 1099-MISC is required for a nonresident who performed services in Vermont.
Filing method: Electronic
Pricing: $0.99 per form
1099-NEC No. Vermont doesn't participate in CF/SF. A Vermont copy is required whenever Vermont withholding is reported on the payment, or whenever a federal Form 1099-NEC is required for a nonresident who performed services in Vermont. Filing method: Electronic
Pricing: $0.99 per form
1099-K No. Vermont doesn't participate in CF/SF. Vermont requires reporting if f any federally reportable Form 1099-K was issued to a recipient with a Vermont address. TPSO transactions have to be reported when they cross the $2,000 threshold.
Filing method: Electronic
Pricing: $0.99 per form
1099-B No. Vermont doesn't participate in CF/SF. A Vermont copy is required only when Vermont income tax was withheld, and state reporting applies.
Filing method: Electronic
Pricing: $0.99 per form
1099-R N0. Vermont doesn't participate in CF/SF. A Vermont copy is required whenever Vermont income tax was withheld from the distribution. Filing method: Electronic
Pricing: $0.99 per form
1099-G N0. Vermont doesn't participate in CF/SF. A Vermont copy is required whenever Vermont income tax was withheld on the payment.
Filing method: Electronic
Pricing: $0.99 per form
1099-INT N0. Vermont doesn't participate in CF/SF. A Vermont copy is required whenever Vermont income tax was withheld, and state reporting applies.
Filing method: Electronic
Pricing: $0.99 per form
W-2G N0. Vermont doesn't participate in CF/SF. Vermont state information must be included in the filing whenever Vermont withholding is reported on reportable gambling winnings.
Filing method: Electronic
Pricing: $0.99 per form
W-2 Not applicable. A direct Vermont filing is required whenever Vermont wages or withholding are reportable. It is filed together with the annual Form WHT-434 reconciliation.
Filing method: Electronic
Pricing: $0.99 per form

Vermont is not a participant in the IRS Combined Federal/State Filing Program. So, a state copy must be filed directly with the Vermont Department of Taxes.

Form WHT-434 is filed alongside the annual Form W-2 and Form 1099. For tax year 2026, filers submitting 10 or more combined Form W-2 and Form 1099 returns must file Form WHT-434 and the accompanying forms electronically. Payroll filing services must always be filed electronically.

For the 2026 tax year, federal electronic information returns are filed via IRIS. However, filing through IRIS meets only the federal requirement and does not fulfill the direct state filing requirement.

Vermont State Filing Corrections Pricing

Correction type Filing method Pricing
Form 1099 Corrections Paper filing $10 per submission + $0.99 per form
Form W-2C Paper filing $10 per submission + $0.99 per form
OBBBA update

How OBBBA Affects Vermont 1099 Reporting

Vermont's 2026 tax guidance adopts partial retroactive conformity to the One Big Beautiful Bill Act for state income tax purposes only.

Vermont does not change its existing information-return filing rules or create the state's special Form 1099-K threshold.

For the 2026 tax year, OBBBA has increased the reporting threshold for Form 1099-NEC and several Form 1099-MISC categories from $600 to $2,000. It also restored the Form 1099-K threshold for third-party settlement organizations to above $20,000 and 200 transactions.

For Form 1099-K, Vermont follows a $2,000 threshold, with no transaction-count requirement.

FAQs

Vermont requires state reporting when Vermont income tax has been withheld from the payment, or when a federal Form 1099 is required for a nonresident who performed services in Vermont, with a separate rule for Form 1099-K.

Filing with the IRS does not satisfy Vermont's requirement, since Vermont has withdrawn from the Combined Federal/State Filing Program. The state copy must be sent directly to the Vermont Department of Taxes.

For tax year 2026, the Vermont deadline for most Form 1099s is February 1, 2027, because the normal deadline of January 31 falls on a Sunday that year, with the exception of Form 1099-K, which is due 30 days after the relevant IRS deadline.

For tax year 2026, electronic filing will be required when 10 or more Forms W-2 and Forms 1099 are submitted together. Payroll filing services must eFile irrespective of the number of returns, whether they are filing directly via the myVTax portal or through Tax1099's supported workflow.

Form WHT-434 is Vermont's annual withholding reconciliation, filed alongside Form W-2 and Form 1099 returns. It reconciles Vermont withholding reported during the year against the withholding shown on those forms.

Vermont's Form 1099-K threshold for tax year 2026 is $2,000 with no transaction requirement.

Tax1099 supports state-only filing for reportable Vermont forms, including Form WHT-434, with all filings sent directly to the state.

Vermont 1099 and W-2 Filing Made Easy

Filing Form 1099 and Form W-2 with Vermont gets simpler with Tax1099. Manage direct state filing and CF/SF filing in one secure Tax1099 workflow.

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