TAX QUESTIONNAIRE 2022 - cont’d

SELF-EMPLOYED

Tip: Check N/A on the questionnaire if not self-employed and skip to next section.

(2) You understand personal expenses are not deductible and have excluded
the personal portion of auto use, cell phone service, utilities, internet,
memberships, etc. from business expenses provided to us?

Personal expenses are never deductible as business expenses and should be excluded from any data or information you provide to us. For items used both personally and for business, such as cell phones and internet, you must reasonably determine the business use percentage and apply it to the expense.

(3) Paid health insurance premiums for policy in the name of S/E individual?

Health insurance premiums paid for a self-employed person, as well as spouse and dependents may be deductible. To qualify the policy must be in the name of the self-employed person.

(7) Purchase, sell or exchange any assets used in your business?

The sale of any assets used in your business is reportable on your tax return. The list of assets owned will be included in the tax organizer sheets we provide. You will need to provide the date of sale or disposal, and the sale amount, if any.

(10) Regular & exclusive use of home for business?

For a self-employed person to deduct business use of home expenses, the area used for business must be used regularly and exclusively as such. Regularly means on an ongoing basis, and exclusively means it is not used personally. If you took this deduction on your last return you will receive a worksheet for providing the home expense and business use percentage to use for this tax return.

ADJUSTMENTS TO INCOME

(1) Traditional IRA - made or will make 2022 contribution by 4/18/23?

If eligible, you may make a traditional IRA contribution up to the due date of the return for the tax year being filed.

(2) Roth IRA - made or will make 2022 contribution by 4/18/23?

If eligible, you may make a Roth IRA contribution up to the due date of the return for the tax year being filed. For single filers the income phaseout range is $129,000 - $144,000, for married filers $204,000 - $214,000.

Tip: Even if you are not eligible to deduct a traditional or Roth IRA contribution, you can still make a non-deductible IRA contribution.

(3) Make contributions to a Health Savings Account?

HSA contributions through your employer will be reported on your W-2. If you make contributions directly to your HSA, you have until the due date of the return to contribution for the tax year being filed. All HSA owners who contributed to an HSA must provide Form 5498-SA to us for reporting on their tax return. If you cannot locate this document you should contact your HSA custodian to request it.

(4) Make withdrawals from an HSA?

HSA owners who paid medical expenses with HSA funds will receive Form 1099-SA reporting the distributions. This must be provided to us for reporting on the tax return. If you cannot locate this document you should contact your HSA custodian to request it.

(7) Paid or received alimony in 2022?

Alimony payments are no longer deductible, unless made under a divorce decree dated prior to January 1, 2019.

ITEMIZED DEDUCTIONS

Tip: If you know you are unable to itemize, check N/A and skip to next section.

(1) Out of pocket medical expenses exceed 7.5% of income?

If you are certain your medical expenses total less than 7.5% of your income, answer No. Otherwise check Yes and provide a list of expenses and amounts.

(5) Pay home equity loan interest for other than home purposes?

Home equity loan interest is deductible only to the extent the loan was used to buy, build or improve your home or second home. If you are paying interest on a home equity loan that was used for other purposes, the interest is not deductible. If the loan was used for both home and other purposes, the interest must be allocated accordingly.

CHARITABLE CONTRIBUTIONS

Tip: You must be able to itemize deductions to claim a tax deduction on your federal return for contributions to a charity. Vermont allows a 5% credit for charitable contributions up to a maximum credit of $1,000.

(1) Did you make cash/check contributions to a qualified 501C3 charity?

Only contributions to a charity qualified as tax-exempt under Section 501C3 of the Internal Revenue Code are eligible for a tax deduction. Receipts from qualified charities should confirm deduction eligibility.

Tip: Donations to crowdfunding campaigns (such as GoFundMe) are typically not tax deductible because they are going to individuals and not qualified charities.

(2) If yes (to Q1 above) have a receipt, bank or credit card record for each gift?

No deduction for donations to a qualified charity are allowed without written documentation. Written documentation can be a receipt from the charity, canceled check, bank or credit card statement.

(3) For any single gift of $250 or more, do you have the required contemporaneous
letter from charity documenting the contribution?

Any single qualified cash donation of $250 or more cannot be deducted without a written contemporaneous acknowledgement from the organization showing date and amount of contribution, whether and goods or services were provided to the taxpayer by the charity, and a statement that the only benefit the taxpayer received was an intangible religious benefit (if applicable).

(5) Make NON-cash charitable contributions totaling $500 or more?

Non-cash donations are donations such as clothing, household goods, books, etc. If the total of any such donations to a qualified 501C3 organization is $500 or more, you must provide a written receipt from each charity showing the date, location, reasonable description of contributed property, whether any goods or services were received for the donation. You also must assign a fair market value for the goods on each receipt.

VERMONT USE TAX

Tip: See the FACT SHEET at the back of your questionnaire if you do not understand these questions. If this section of the questionnaire is blank or incomplete your Vermont return will be completed attesting to $0 Use Tax owed.

(1) Did you make purchases subject to 6% Use Tax?

If you made purchases subject to use tax you can pay the tax based on your income (see Use Tax Reporting Table on pg 1 of Fact Sheet) or on actual sales times 6%.

(4) If yes (use Reporting Table), any single purchases of $1,000 or more?

If you owe use tax and elect to pay according to the income table, you still must pay 6% use tax on any single purchases of $1,000 or more. In this case you select the tax from the reporting table according to your income, then add 6% of the total of all individual purchases of $1,000 or more. See the explanation below the Use Tax Reporting Table for further information.

(5) Pay 6% Use Tax on document purchases, do not use table?

If you owe use tax and know the amount of purchases it is owed on, provide that amount and we will include 6% of that amount as use tax owed on your return.

VERMONT PROPERTY TAX CREDIT

(2) CO-own home with someone other than spouse?

If you co-own your home with someone other than your spouse, please confirm ownership percentages. Only one Homestead Declaration can be filed for each Vermont residence.

(3) Anyone other than you, your spouse and your dependents reside in your home
for any part of 2022?

If anyone besides you, your spouse and your dependents lived in your home during the year, their income is required to be included in your Vermont household income (HHI) for purposes of calculating any Vermont property tax credit. It does not matter whether they contributed financially to the household or not. Provide income information for the time they lived with you.
Example: Your friend lived with you for 6 months during the year and during that time they earned $15,000 at their job. Your friend’s name, SSN and the $15,000 wages must be reported on your Vermont household income form if you are otherwise eligible for the Vermont property tax credit.

(4) Have dependent(s) who earned more than $6,500 in wages or who received
any investment or other income?

If you otherwise qualify for the Vermont property tax credit, for calculating the amount of the credit you must report as Vermont household income (HHI) certain income of your dependents. This includes wages and other earned income, but only in excess of $6,500 per dependent. It also includes all investment income of your dependents, such as interest, dividends and capital gains.

(6) Did household receive cash/property gifts totaling $6,500 or more?

If your household received gifts of cash or property during the year, the total of those gifts exceeding the $6,500 per household exemption must be reported as HHI for calculating the amount of your property tax credit.
Example: Your wealthy aunt gave you $16,000 as a birthday gift. $9,500 ($16,000-$6,500) must be included in HHI for calculating your property tax credit.

Tip: For more information on Vermont Household Income, go to: https://tax.vermont.gov/sites/tax/files/documents/FS-1057.pdf