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Instructions For Schedule Fit-166 - Vt Income Adjustments And Tax Computations For Fiduciaries

SCHEDULE FIT-166 Instructions

VT INCOME ADJUSTMENTS AND TAX COMPUTATIONS FOR FIDUCIARIES

Please print in BLUE or BLACK ink only.

Please do not staple or bind your return.

You may use binder clips, paper clips, or rubber bands.

LINE-BY-LINE INSTRUCTIONS

PART I Taxable Municipal Bond Income

INTEREST AND DIVIDEND INCOME FROM NON-VT STATE AND LOCAL OBLIGATIONS ARE

TAXABLE IN VT. A VT obligation is one from the State of VT or VT municipality.

Line 1

Enter the total interest and dividend income received from all state and local obligations exempted from

Federal tax. You may not reduce interest and dividend income by investment expenses if those expenses

are not used to reduce income on your federal return.

Line 2

Enter the interest and dividend income from VT obligations. This may have been paid directly or through

a mutual fund or other legal entity that invests in VT state and local obligations. If the income is received

from a mutual fund that has only a portion of its assets invested in VT state and local obligations, enter only

the VT obligation amount.

Line 3

Subtract Line 2 from Line 1. Enter result here and also on Form FIT-161, Line 2a. This is the amount of

interest and dividend income from non-VT state and local obligations that must be included in VT taxable

income.

Line 4

Check this box if all municipal bond income was distributed and should not be taxed on this return.

PART II Additions and Subtractions to Tax

Lines 1a-b

Complete these lines if the estate or trust is liable for tax on lump-sum distributions from Federal Form 4972

or recapture of Federal investment credit from Federal Form 4255.

Line 1c

Add Lines 1a and 1b and multiply the sum by 24%.

Line 2a

Investment tax credit from Form 3468. This credit is limited to the amount of investment tax credit attributable

to the VT-property portion.

Line 2b

Multiply Line 2a by 24%.

Line 2c

VT-Based Research and Development Credit carryforward. Unused VT-based research & development tax

credit may be carried forward no more than five years following the year the credit is claimed.

Line 2d

Add Lines 2b and 2c.

Schedule FIT-166 Instructions

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Rev. 10/17

Instructions For Schedule Fit-166 - Vt Income Adjustments And Tax Computations For Fiduciaries