Vermont 1099-INT Filing Requirements, Tax Year 2026
What Vermont requires from businesses filing 1099-INT (Interest income) for tax year 2026: deadline, accepted format, CF/SF treatment, registration, and penalties, backed by primary-source citations.
Filing requirements
Vermont requires direct filing of 1099-INT with the state for tax year 2026. Federal filing through the IRS Combined Federal/State Filing (CF/SF) Program does not, on its own, satisfy the Vermont requirement for 1099-INT; a separate state submission is required.
Vermont does not participate in the IRS Combined Federal/State Filing Program, so 1099-INT data is not forwarded by the IRS. A direct filing with Vermont is required only when Vermont income tax was withheld from interest payments — in which case the 1099-INT is filed through myVTax with the WHT-434 transmittal by January 31. Without withholding there is no Vermont 1099-INT obligation (32 V.S.A. § 5862d's nonresident-services trigger applies to services, not investment interest).
Conditional rules
The summary above applies when no Vermont tax was withheld. The conditions below describe what changes when withholding is present, plus other scenario-specific rules:
| Condition | Explanation |
|---|---|
| Direct filing required only when Vermont tax was withheld |
If Vermont income tax was withheld on a 1099-INT payment, the form must be uploaded to myVTax with Form WHT-434 (the annual withholding reconciliation) by January 31. If no Vermont tax was withheld, no Vermont 1099-INT filing is required — there is no CF/SF backstop because Vermont does not participate in the program. |
Deadlines and extensions
Accepted format
Fire
myVTax bulk upload using IRS Publication 1220 layout (Payee B-record state account in positions 663-722 as WHT-12345678), or manual data entry. WHT-434 transmittal accompanies the submission.
Filing portal: myVTax (https://myvtax.vermont.gov)
Transmittal form required: WHT-434 (Annual Withholding Reconciliation)
E-file threshold: 11 or more forms must be e-filed.
More than 10 combined W-2/1099 forms must be e-filed via myVTax. Payroll services and tax preparers must e-file regardless of count.
Registration
Registration required: Yes
Late-filing penalties
Vermont penalty overview
Statutory hook: 32 V.S.A. § 5862d(c) treats failure to file a required 1099 as a failure to provide a return for purposes of §§ 3202, 5863, and 5864 of Title 32 (Vermont's general return-filing penalty/interest provisions).
Practical penalties cited by third-party guides for late 1099 filing in Vermont: monthly 5% of unpaid tax until filed; $50 per return when filed more than 60 days after the deadline; up to 100% of unpaid tax for intentional misreporting. These rates are not enumerated on a single VT DOR page, so the canonical enforcement source is § 5862d(c) plus the §§ 3202/5863/5864 framework.
E-file mandate exposure: Form WHT-434 and the accompanying 1099/W-2 set MUST be filed electronically when the combined W-2 + 1099 count exceeds 10, and payroll services / multi-employer preparers must always file electronically.
Frequently asked questions
Does Vermont require filing of 1099-INT for tax year 2026?
Does Vermont participate in the CF/SF program?
What is the Vermont 1099-INT filing deadline for tax year 2026?
What format does Vermont accept for 1099-INT?
Do I need to file 1099-INT with Vermont if I also filed federally?
What happens if I miss the Vermont 1099-INT deadline?
How do I register to file with Vermont?
Source citations
“From 32 V.S.A. § 5862d(a): "Any individual or business required to file a federal form 1099 with respect to a nonresident who performed services within the State during the taxable year shall file a copy of the form with the Department." Vermont has a two-pronged trigger for 1099-MISC filing: Trigger 1: Vermont state tax was withheld → Filing required with WHT-434 Trigger 2: Payment made to nonresident for services performed IN Vermont → Filing required per 32 V.S.A. § 5862d For a Wisconsin payer with NO Vermont withholding: If payments were NOT for services performed in Vermont → NO filing required If payments WERE for services performed in Vermont by nonresidents → Filing required ”
“The Vermont Department of Taxes does not participate in the Combined Fed/State program for submitting W-2 and 1099 forms with the IRS. You must file these forms directly with the Department.”
“All taxpayers are required to file Form WHT-434. This form should be filed with copies of your Forms W-2 and/or 1099. You may file this form electronically on our online filing site at myvtax.vermont.gov. Due Date Form WHT-434 is due January 31 for the previous tax year.”
“Vermont follows the IRS guidelines for electronically filing 1099 returns. ... See IRS Publication 1220 for file layouts for the relevant tax year. Record Format and Record Layout Specifications Required Payee Record “B” should include the Vermont account number in position (663-722) using the format, WHT-12345678.”
“All employers are required to file Form WHT-434, Annual Withholding Reconciliation by January 31 each year. This form serves as the transmittal for forms W-2 and/or 1099 and reconciles the amount of Vermont income tax withholding reported during the previous year to the amount of withholding tax shown on the W-2 and/or 1099 forms.”
Additional notes
Vermont does not participate in the IRS Combined Federal/State Filing (CF/SF) Program. All 1099 forms required to be filed with Vermont must be submitted directly through the myVTax portal at myvtax.vermont.gov. Two filing triggers apply: (1) the form was subject to Vermont income tax withholding (must accompany the WHT-434 annual reconciliation by January 31), or (2) the form is a 1099 issued to a nonresident who performed services in Vermont (32 V.S.A. § 5862d(a)). 1099-K filings have a special rule: third-party settlement organizations must file with Vermont within 30 days of the federal IRS deadline whenever the recipient has a Vermont address, with payments aggregating $600+ per person (statute) / $2,000+ (current TPSO operational threshold cited by the DOR). Filers submitting more than 10 combined W-2/1099 forms must use myVTax electronically; bulk uploads follow IRS Publication 1220 record layouts modified for Vermont.
Scope: Original 1099 filings with no Vermont state income tax withheld. State agencies revise rules without notice; verify with the Vermont state agency directly before you file.
This page is general information only, not legal, tax, or accounting advice. You are solely responsible for verifying your filing obligations with the state agency or a qualified tax professional.
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