Instructions For Schedule In-113 - Income Adjustment

Line 27, Column A Enter deduction(s) to adjusted gross income that are included in the total on federal Form 1040, Line 36.

Line 27, Column B Enter the portion of the deductions paid or incurred during your Vermont residency or resulting from Vermont

income earned or received.

PART II Adjustment for Vermont Exempt Income

Line 32

If Part I is completed, enter the amount from Line 29. Otherwise, enter Adjusted Gross Income from Form IN-111,

Line 10.

Line 33

Part-Year Residents and Nonresidents: Enter the amount from Part I, Line 31. Full-Year Residents: Enter -0-.

Line 34

Enter the amount of Vermont exempt military pay received in 2017 that is included in your federal adjusted gross

income. Exempt military pay is:

Wages earned from the armed services for full-time active duty outside of Vermont. You may be asked

to provide the Required Supporting Documents: Copy of active duty orders.

II.

Up to $2,000 for National Guard or U.S. Reserve training pay earned in Vermont if your adjusted

gross income for tax year 2017 is less than $50,000. You may be asked to provide the Required

Supporting Documents: Copy of DFAS form or certification statement from unit that all training was

completed during the calendar year.

III. Student loan repayment can be taken only if the amount is included in your adjusted gross income.

Enter the repayment benefit made under 10 U.S.C. Chapters 109 and 1609 for 2017. You may be

asked to provide the Required Supporting Documents: Certification statement from armed services

showing your name, address, Social Security Number, amount of student loan repayment, and payment

date.

Line 35

Enter the amount you received in 2017 for Regular Railroad Retirement Benefits (Tier 1) and Supplemental

Railroad Annuity Payments (Tier 2). This income is taxable at the federal level, but exempt from Vermont income

tax. If you receive Social Security that includes Tier 1 or Tier 2 benefits, enter only the portion included in your

federal adjusted gross income. You may be asked to provide the Required Supporting Documents: Copies of

1099, 1099RB, WP-4, or any other document you received showing payment of these benefits.

Line 36

The interest or income from a bond or note of: (1) Vermont Student Assistance Corporation, (2) Build America,

(3) Vermont Telecommunications Authority, or (4) Vermont Public Power Supply Authority is exempt from

Vermont income tax to the extent the interest or income is included in federal adjusted gross income. Enter the

amount of interest or income from these sources that is also included in your federal adjusted gross income.

Line 37

Add Lines 33 through 36 and enter result. This is the total amount of income not subject to Vermont income tax.

No entry is needed on this line if you did not have entries on Lines 33 through 36.

Line 38

Subtract Line 37 from Line 32. This is the Vermont income subject to tax.

Line 39

Divide Line 38 by Line 32. Also enter on Form IN-111, Line 21.

Carry out to two decimal places. Example: XX.XX%

Dealing with negatives:

• If Line 32 or 33 is a negative, enter 100%

• If Line 38 is a negative, enter 0%

• If Lines 32 and 38 are negative, enter 0%

2017 Schedule IN-113 Instructions

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Instructions For Schedule In-113 - Income Adjustment - 2017 Page 2

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