SCHEDULE K-1VT Instructions

                    Shareholder, Partner, or Member Information
                                                                                                                         Page 1

                                 General Information
                    Please print in BLUE or BLACK ink only.
 Schedule K-1VT reports the income sourced to Vermont earned by a business entity that is passed through to the 
 owners. In general, pass-through entities, including S-Corporations, Partnerships, and some Limited Liability 
 Companies, should include a Schedule K-1VT for each Shareholder, Partner, or Member (S/P/M) with their 
 Form BI-471, Vermont Business Income Tax Return. There are exceptions for composite returns, described 
 below.
 Every business must provide each S/P/M with a copy of their Schedule K-1VT on or before the due date of 
 Form BI-471.
 Businesses that file Form BI-476, Business Income Tax Return (For Residents Only), instead of Form BI-471 
 should not include Schedule(s) K-1VT with the return.  They may prepare the schedule(s) and provide them to 
 the owner(s) if desired.
 For detailed information on filing requirements and definitions of income and residency, refer to the following 
 resources, available on the Department’s website:                                                                       INSTR  (Place at FIRST page)
                                                                                                                         Instr. pages 
                    •  32 V.S.A., § 5811, § 5823, § 5861, § 5912, § 5914, § 5920
                    •  Technical Bulletin TB-06, Estimated Payments by Corporations, Partnerships And Limited Liability 
                    Companies On Behalf Of Shareholder
Complete a Separate Schedule K-1VT for each S/P/M
 EXCEPTION:         If the business has elected or is required to file a composite return to report and pay tax for      1 - 4
 its S/P/Ms who are Vermont nonresidents, consolidate their information on to a single Schedule K-1VT. The 
 “recipient” information (name, FEIN, etc.) should be that of the reporting business entity. The percent ownership 
 and other numerical fields should be the sum of the figures for all owners included in the composite filing.  Mark 
 the “Composite” checkbox “Yes.”
 The entity may, at its discretion, complete a Schedule K-1VT for each separate owner that is included in the 
 composite filing.  An example of where this might be helpful would be if one or more owner in the composite 
 filing has a Vermont income tax filing requirement due to other Vermont activity.  The Schedule K-1VT would 
 demonstrate the income distributed, which would be deducted from the owner’s income tax return in order to 
 avoid double-taxation.  These Schedules K-1VT should not be attached to Form BI-471 sent to the Department.
 Line 5 would be -0-.  Estimated payments would not pass through to owners, but would be applied as a credit 
 against tax at the entity level.
 NOTE:               As of 2014, if an entity files a composite return, all Vermont nonresidents must be included in the 
 composite filing.  “Partial composite” returns will not be accepted.
Above the Header Information – REQUIRED ENTRIES
 Enter the begin and end dates of the fiscal year of the business filing the return.
 Enter the Business Name and FEIN of the business filing the return.
Header Information – REQUIRED ENTRIES
 All information in the Header Section is required. Failure to correctly complete this information will result in 
 processing delays and/or late filing penalties for your return.
 Name, Address, ID Number (FEIN or Social Security Number, as appropriate)
 If the S/P/M is an entity other than an individual, enter the Entity Name of the S/P/M, and its FEIN.  If the S/P/M 
 is an individual, enter the Individual Last Name, First Name, Middle Initial, and Social Security Number.  See 
 also “Notes for disregarded entities and trusts” below, if applicable.
 Enter the complete address of the S/P/M.
 Enter the Foreign Country for the S/P/M if other than the United States.
                                                                                    Schedule K-1VT Instructions
                                                                                    Page 1 of 4
www.tax.vermont.gov                                                                 Rev. 10/20

Recipient S/P/M Type:
 I  -Individual         (including Trusts that report directly on an individual income tax return, as opposed to filing a 
 fiduciary return)
 C -C-Corporation, 501(c)(3)
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 S  -S-Corporation
 L  -Limited Liability Company             (not a disregarded entity)
 P -Partnership
 T -Trust              (filing a fiduciary return)
 X –Exempt Organization             - If the S/P/M is an exempt entity, not subject to income taxation (such as an ESOP 
 or nonprofit to which this income is not characterized as unrelated business income).  Provide a statement of the 
 name(s) and FEIN(s), and description of why or authority by which it is exempt from income taxation.
Residency Status      
 Check the appropriate box to indicate the residency status of the S/P/M. Review 32 V.S.A. § 5811 if necessary.
Percentage of Entity’s income or loss to this recipient
 Enter the percentage of the entity’s Vermont sourced income distributed or allocable to this S/P/M, written as a 
 percent, and calculated to six places to the right of the decimal point.  (For example, exactly 5% would be written 
 as 5.000000%.) Note that this is a percentage of income or loss, not percentage of ownership. “Various” is not a 
 valid entry.
                     • The sum of this field across all attached Schedules K-1VT must add up to exactly 100.000000%.
                     • The sum of this field across all Schedules K-1VT marked as “nonresident” (as opposed to “VT 
                       Resident”) must add up to the amount reported on Schedule BI-472, Non-Composite Schedule, 
                       Line 17 or Schedule BI-473, Composite Schedule, Line 18 (whichever is attached).
                     • Otherwise, processing will be delayed.
Did this entity pay tax on this income as part of a composite return?
 For any S/P/M that is a resident of Vermont, mark “No.”
 If the business has not elected and is not required to file composite, mark “No” on all Schedules K-1VT.
 For composite entities, the Department requires a single Schedule K-1VT that aggregates the information of all 
 S/P/Ms included in the composite filing.  However, some businesses and preparers choose to create a separate 
 Schedule K-1VT to distribute to each S/P/M.  For either the individual or aggregate composite Schedule K-1VT:
                     • Mark “Yes” if this S/P/M is a Vermont nonresident, and is included in the company’s composite 
                       return, whether the composite return is elected by the taxpayer or mandated by the state (due to 
                       having more than 50 Vermont nonresident S/P/Ms).
                     • If the S/P/M is included in the composite return, Schedule K-1VT, Line 5, will be -0-, and the S/P/M 
                       will not receive any of the estimated payments credited at the entity level.  Those payments will be 
                       applied to composite tax, and any overpayment would be available to the entity for refund or as a 
                       credit forward to the next tax year.
                     • If the S/P/M is included in the composite return, and has no other activity, income, or loss in 
                       Vermont, they are relieved of their requirement to file their own Vermont income tax return.
                     • Instructions for Schedule K-1VT recipients:    If you received a Schedule K-1VT and this box 
                       was marked “Yes,” Line 5 should equal -0-, and you should not include this income on your own 
                       Vermont income tax return.  Additionally, you are not able to claim any nonresident withholding 
                       paid by the entity that issued you this Schedule K-1VT.  
 NOTE:  As of 2014, “partial composite” returns are not allowed.  Any company electing or mandated to file a 
 composite return must include all Vermont nonresidents.  There is no opt-out on an individual basis.

                                                                                           Schedule K-1VT Instructions
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www.tax.vermont.gov                                                                                              Rev. 10/20

                               Line-By-Line Instructions
Line 1 Vermont Business Income -  Enter this recipient S/P/M’s share of Vermont Business Income.  The sum of this 
       line across all attached Schedules K-1VT must add up to the sum of the amounts reported on Schedule BI-472, 
       Lines 11 and 13, or the sum of the amounts reported on Schedule BI-473, Lines 12 and 14.
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Line 2 Capital Gains allocated to Vermont -  Enter this recipient S/P/M’s share of Capital Gains allocated to Vermont.
Line 3 Other income allocated to Vermont - Enter this recipient S/P/M’s share of other income allocated to Vermont.
       NOTE:  The sum of all attached Schedules K-1VT, Lines 2 and 3, must add up to the sum of the amounts 
       reported on Schedule BI-472, Lines 12, 14, and 15, or the sum of the amounts reported on Schedule BI-473, 
       Lines 12, 15, and 16.
Line 4 Amount of total Vermont income  NOT       characterized as Unrelated Business Income (UBI) for Federal 
       purposes (tax-exempt entities only) - If recipient is a nonprofit, exempt entity, or federal Form 990 series 
       filer, enter the amount of income that is not characterized as unrelated business income for federal income tax 
       purposes.  That is, enter the amount of income that is exempt from taxation under the Internal Revenue Code and 
       Vermont law.
Line 5 Total annual nonresident estimated payments allocated to this shareholder - If this recipient S/P/M is a 
       Vermont resident, enter -0-.  
       If this recipient S/P/M is a nonresident, enter the portion of the amounts from Form BI-471, Lines 7, 8, 11, 
       and 12 to be distributed to this S/P/M’s income tax account.  (If the S/P/M is included in the composite return, 
       no estimated payments will be allocated to them.)
       NOTE:  For non-composite entities, the sum of all Schedules K-1VT, Lines 5 and 6, must equal or be greater 
       than the amount on Form BI-471, Line 2a.
Line 6 Total annual real estate withholding payments allocated to this shareholder - If this recipient S/P/M is a 
       Vermont resident, enter -0-.  
       Enter the amount of any real estate withholding payments allocated to this S/P/M.  Real estate withholding 
       would have been paid by the buyer of Vermont real estate this business sold in this fiscal year, and reported on 
       Form RW-171, Schedule A, or may have been distributed to this entity from such a seller of which this entity is 
       an owner, via a Schedule K-1VT. 
       NOTE:  The sum of all Schedules K-1VT, Line 6, must equal the sum of Form BI-471, Lines 9 and 10.  Real 
       estate withholding must be distributed to S/P/Ms and may not be refunded to the entity, unless a composite return 
       is being filed.
Line 7 Share of total federal bonus depreciation difference - Enter the difference between bonus depreciation 
       taken for federal income tax purposes and depreciation allowed for Vermont. Bonus depreciation taken in 
       the current year is not allowed for Vermont purposes and results in an increase in Vermont income. Report 
       on Schedule IN-112, Vermont Tax Adjustments and Credits, Line 4.  Bonus depreciation taken in a prior 
       year results in a decrease in the current year Vermont income. If the decrease from past bonus depreciation 
       exceeds the current year disallowance, report the negative value on Line 7 and report the decrease in income on 
       Schedule IN-112, Line 8.

                                                                                 Schedule K-1VT Instructions
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www.tax.vermont.gov                                                                            Rev. 10/20

Notes for disregarded entities and trusts
 If the S/P/M is a disregarded entity that does not file a Vermont income tax return, provide information for the 
 owner of that entity who will file a return. Include a statement that explains the chain of ownership and identifies 
 the disregarded entity. Providing Schedules K-1VT for entities that do not file Vermont income tax returns will 
 delay allocation of estimated payments.                                                                                     Page 4
 Examples:
                    A) The recipient is a single-member LLC owned by an individual that reports all activity on federal 
                       Form 1040, U.S. Individual Income Tax Return, Schedule C, Profit or Loss from Business (Sole 
                       Proprietorship). Provide the name and SSN of the individual filing Schedule C, and indicate “I” in 
                       the recipient type box.
                    B) The recipient is a single-member LLC owned by a C-Corporation. Provide the corporation’s name 
                       and FEIN, and indicate “C” in the recipient type box.
                    C) The recipient is a trust that reports all activity directly on the recipient’s individual income tax 
                       return. Provide the name and SSN of the individual on whose return the trust is reported, and 
                       indicate “I” in the recipient type box.
                    D) The recipient is a trust which files a fiduciary return with Vermont. Provide the entity name and the 
                       FEIN of the trust.  Indicate “T” in the recipient type box.
                    E) The recipient is a corporation that does not file a standalone corporate income tax return but is 
                       included in a combined report for a unitary group.  Provide the name and FEIN of the Principal 
                       Vermont Corporation.  Include a statement identifying the corporation that is the direct owner.       INSTR  (Place at LAST page)
                                                                                                                             Instr. pages 
For assistance, call (802) 828-5723.

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                                                                                  Schedule K-1VT Instructions
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www.tax.vermont.gov                                                               Rev. 10/20