The rules
| Forms filed with the state | 1099-B, DIV, G, INT, K, MISC, NEC, OID, PATR and R (and W-2) when Vermont tax was withheld; any 1099 issued to a nonresident who performed services in Vermont; and 1099-K duplicates for payees with a Vermont address (32 V.S.A. 5862d). |
| Who must file | Payers with Vermont withholding (residents, or nonresidents for services performed in Vermont); any business required to file a federal 1099 for a nonresident who performed services in Vermont, even without withholding; payment settlement entities/TPSOs for Vermont-address payees. |
| Due date | January 31 (Form WHT-434 with W-2s and 1099s; 2025 forms were due January 31, 2026). Statute allows 1099-K within 30 days after the IRS due date. |
| How | myVTax (bulk upload in Pub 1220 format with Vermont account number in positions 663-722, or data entry). E-filing required for filers submitting 10 or more W-2/1099 forms and for all payroll services; smaller filers may file paper. Transmittal: Form WHT-434 Annual Withholding Reconciliation. |
| State 1099-K threshold | Yes. Statute applies the IRC 6041(a) de minimis amount instead of the federal 1099-K threshold: $600 through tax year 2025; the Department’s 1099-K FAQ now states $2,000 or more, reflecting the federal 6041(a) increase for payments after 2025. |
| Nonresident withholding | Withholding required on wages of nonresidents for services in Vermont; 2.5% withholding on sales of Vermont real estate by nonresidents (Form RW-171); pass-through withholding on nonresident members. No general nonresident independent contractor withholding, but their 1099s must be filed with Vermont. |
- Vermont does not participate in CF/SF; file directly in myVTax.
- The 2017 news release still says $600; the current 1099-K FAQ says $2,000. The statute ties the threshold to 26 U.S.C. 6041(a), so the tax-year-2026 threshold tracks the new federal $2,000 amount unless Vermont amends the law.
Questions people ask about Vermont
Do I have to file 1099s directly with Vermont?
Yes, when Vermont tax was withheld on the payment. Even without withholding, Vermont requires a direct filing in some cases. Payers with Vermont withholding (residents, or nonresidents for services performed in Vermont); any business required to file a federal 1099 for a nonresident who performed services in Vermont, even without withholding; payment settlement entities/TPSOs for Vermont-address payees.
Which 1099 forms does Vermont require?
1099-B, DIV, G, INT, K, MISC, NEC, OID, PATR and R (and W-2) when Vermont tax was withheld; any 1099 issued to a nonresident who performed services in Vermont; and 1099-K duplicates for payees with a Vermont address (32 V.S.A. 5862d).
When are 1099s due in Vermont?
January 31 (Form WHT-434 with W-2s and 1099s; 2025 forms were due January 31, 2026). Statute allows 1099-K within 30 days after the IRS due date.
How do I file 1099s with Vermont?
myVTax (bulk upload in Pub 1220 format with Vermont account number in positions 663-722, or data entry). E-filing required for filers submitting 10 or more W-2/1099 forms and for all payroll services; smaller filers may file paper. Transmittal: Form WHT-434 Annual Withholding Reconciliation.
Does Vermont have its own 1099-K threshold?
Yes. Statute applies the IRC 6041(a) de minimis amount instead of the federal 1099-K threshold: $600 through tax year 2025; the Department’s 1099-K FAQ now states $2,000 or more, reflecting the federal 6041(a) increase for payments after 2025.
Does Vermont require withholding on payments to nonresident contractors?
Withholding required on wages of nonresidents for services in Vermont; 2.5% withholding on sales of Vermont real estate by nonresidents (Form RW-171); pass-through withholding on nonresident members. No general nonresident independent contractor withholding, but their 1099s must be filed with Vermont.
Verified September 24, 2026 against https://tax.vermont.gov/business/withholding/1099-specifications. One or more items could not be confirmed on the state site and are marked in the table; Rules change annually and most states had not yet posted 2026 specifications at the time of review; confirm before filing.
What does not change by state
TIN matching, B-Notices, backup withholding and the IRC 6721 penalty are federal. A payee in Vermont who gives you a name/TIN pair that does not match IRS records produces the same CP2100 line as one anywhere else, and the same 15- and 30-business-day clocks. State filing is a separate obligation layered on top.