Vermont Legislature will exempt $10,200 of unemployment benefits on taxes
MONTPELIER, Vt. (WCAX) - Some Vermonters who got unemployment benefits last year won’t have to pay taxes on a portion of them.
The Vermont Legislature will waive the first $10,200 of unemployment benefits for anyone whose income is less than $150,000.
This move mirrors Congress’ decision to exempt unemployment benefits.
Representative Janet Ancel, D-Washington-6, says the state Legislature likely would not have made the change without Congress’ lead, since unemployment benefits are typically taxed.
“We were able to work out the financial hit which is about $12.6 million. It’s a really large amount of money but we’ve been able to sort that out so that we can make things simpler for people and give people some benefit,” Ancel said.
Ancel says the state will exempt the unemployment benefits whether you received them from the state or the federal government.
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