The Associated Press is reporting today that changes made in Vermont’s tax code since last year may not be recognized by TurboTax and other popular tax preparation software, resulting in many to have underpaid their taxes for 2015. TurboTax has indicated any associated errors were addressed by April1st, however, users before that date or who may have used another brand software may run into issues, which vary with each publisher. It appears not capping deductions properly has been a major source of issue.
Worse part is, Vermont may not be able to notify taxpayers of the shortage until December, yet will start assessing interest on the unpaid amount starting July 1st, with penalties to follow by Oct 1.
Anyone in Vermont who has used, or their tax account has used, such software to prepare their 2015 return should definitely follow up now and be sure they have paid the right amount to clear avoid headaches later this year.