What reasons would cause my nonresident Vermont state tax return to increase by almost $800 since last year?

[emmalourose-wilson]

I did receive a raise and started a new job, along with my new employer who wasn't contributing to some of the required tax brackets for a few weeks until I noticed and they fixed it. I'm also wondering if it messed something up with my filings because they have me labeled as "resident" of Vermont since they aren't able to withhold taxes for VT if I'm listed as a non-resident...

[Vanessa A]

Do you mean have a tax that you owe of $800?  If so, the raise and having your employer not withhold would be the biggest reasons to cause you to have to pay in $800.

If you just have a higher tax liability, then that would be due to the raise. 

Vermont has a graduated Tax Rate, which means the more you make the higher tax rate you pay. So a raise could push you into a higher bracket along with just more income means more taxes. 

No, being labeled as a resident when you are actually a non-resident does not affect what you have to pay.  A Non resident of VT has the same standard deductions available as the resident. 

[emmalourose-wilson]

Yes, sorry. Currently the estimate is that I will have to pay over $800 to VT.  My employers have always told me that they are unable to withhold extra money throughout the year to compensate for this, which is why I normally expect to pay during tax season each year. I have paid up to $250 in prior years, but last year it was only $31. 

Even with my raise, I am still under the first tax bracket from the info you attached. I'm just baffled that the amount due would increase by this much. Considering the paycheck information problems that I've noticed with my current employer already, I'm rather concerned that something else is amiss. 

Thank you for the information, I appreciate it! 

[Vanessa A]

Compare your last year return to this year return.  See how much difference there is in your wages, the amount withheld and your tax liability.  Print out last years return and this years return and go line by line to see the differences. This will tell you if something is off or if it is because they did not withhold enough and that along with the raise just made it a lot more than it would have been. 

Also, you can go back and double check your entries for this year to be sure there isn't a typo.  Pay special attention to decimal points and reversing numbers. 

If it is accurate, you can make estimated quarterly tax payments so you are not subject to a penalty at the end of the year if your employer will not withhold more than what the standard rate.