A portion of the contributions to a Vermont VHEIP college savings plan can be subtracted from income on the Vermont individual income tax return.
The credit applies to contributions made to the Vermont Student Assistance Corporation higher education investment plan. The credit equals 10% of the first $2,500 contributed per beneficiary. For jointly filed returns, each spouse can contribute to a beneficiary's account and each spouse may claim the credit for his or her contributions.
Principal amounts (not earnings) rolled over from another state’s 529 plan are also eligible for credit. Funds must remain in the Vermont plan for the remainder of the tax year to qualify for the credit.
To enter the deductible portion of the contributions in the Vermont tax return in TaxSlayer Pro, from the Vermont Tax Return Menu select:
- Total Nonrefundable Credits
- Nonrefundable Credits (IN-119)
- VT Higher Education Investment
- VT Higher Education Contribution - Enter the amount of eligible contributions.
Additional Information: