VT defines VT taxable income in 32 V.S.A. § 5811(21) as federal taxable income reduced by the Vermont standard deduction and personal exemption(s) and modified by with certain additions and subtractions.
Yet, in the VT tax form IN-111 in TurboTax State, it started with my federal adjusted gross income, not my federal taxable income. The result was that my VT taxable income was much higher than my federal because my itemized deductions weren't factored in anywhere. What is going on with this- is this an error in the TurboTax forms/process?
Thanks.
If you are correct (and you're probably not*), the problem is with the VT Dept. of Taxes, not TurboTax. Form IN-111 and the instructions for line 1 say you start with "Federal Adjusted Gross Income (federal Form 1040, Line 11). "
* "(21) “Taxable income” means, in the case of an individual, federal adjusted gross income determined without regard to 26 U.S.C. § 168(k) and............."
https://legislature.vermont.gov/statutes/section/32/151/05811