Bill > H0594

This bill proposes to exempt all federally taxable Social Security benefits from Vermont's income tax. It amends the definition of "taxable income" in Vermont's tax code to exclude all federally taxable Social Security benefits, repealing the previous partial exemption based on the taxpayer's income level. The bill also adds a new statutory purpose section to explain that the exemption is intended to lessen the tax burden on Vermonters who derive part of their income from Social Security benefits. The bill would take effect retroactively on January 1, 2024, applying to taxable years on and after that date.