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I live in NJ and was the mortgagor for a house in Vermont. Do I need to file Vermont state taxes for the interest I earned on that mortgage?

 
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1 Reply
KrisD15
Expert Alumni

I live in NJ and was the mortgagor for a house in Vermont. Do I need to file Vermont state taxes for the interest I earned on that mortgage?

No

that interest is claimed on your Federal return and NJ state return. It is not income attributed to Vermont. 

 

 

According to the State of Vermont:

" (b) For any taxable year, the Vermont income of a nonresident individual, estate, or trust is the sum of the following items of income to the extent they are required to be included in the adjusted gross income of the individual or the gross income of an estate or trust for that taxable year:

(1) rents and royalties derived from the ownership of property located within this State;

(2) gains from the sale or exchange of property located within this State;

(3) wages, salaries, commissions, or other income (excluding military pay for full-time active duty with the U.S. Armed Services and also excluding funds received through the federal Armed Forces Educational Loan Repayment Program under 10 U.S.C. chapters 109 and 1609; and also excluding the first $2,000.00 of military pay for unit training in the State to National Guard and U.S. Reserve personnel for whom the Adjutant and Inspector General or Reserve Component Commander certifies that the taxpayer completed all unit training of his or her unit during the calendar year, and who has a federal adjusted gross income of less than $50,000.00) received with respect to services performed within this State;

(4) income (other than income exempted from State taxation under the laws of the United States) derived from every business, trade, occupation, or profession to the extent that the business, trade, occupation, or profession is carried on within this State, including any compensation received:

(A) under an agreement not to compete with a business operating in Vermont;

(B) for goodwill associated with the sale of a Vermont business; or

(C) for services to be performed under a contract associated with the sale of a Vermont business, unless it is shown that the compensation for services does not constitute income from the sale of the business;

(5) income that was previously deferred under a nonqualified deferred compensation plan and that would have previously been included in the taxpayer’s Vermont income if it had not been deferred, and income derived from such previously deferred income; and

(6) proceeds from any Vermont State Lottery, tri-state lottery, or multijurisdictional lottery ticket paid to a person who purchased the ticket in Vermont, including payments received from a third party for the transfer of the rights to future proceeds related to the ticket, and the Commissioner may require withholding of any taxes due to the State under this subdivision from payments of lottery proceeds."

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