Vermont Credit Allocation Schedule (Instructions)

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Credit Allocation Schedule (Instructions)
Form BA-406 (Instructions)SCHEDULE BA-406 Instructions
Credit Allocation Schedule
General Information
Schedule BA-406 must be completed and attached to the Vermont Business Income Tax Return (Form BI-471 or
Form BI-476 for residents only) if tax credits are earned in the fiscal year.
Schedule BA-406 is used to allocate tax credits (earned in the current year and reported in total on Schedule
BA-404, Tax Credits Earned, Applied, Expired, and Carried Forward) to shareholders/partners/members (S/P/M).
COMPLETE A SEPARATE SCHEDULE BA-406 FOR EACH S/P/M.
EXCEPTION: If the owners who are nonresidents of Vermont have elected to be taxed at the composite rate,
and their information is consolidated to a single Schedule K-1VT, Shareholder, Partner, or Member Information,
then one Schedule BA-406 should be attached to an income tax return for the entity. The “recipient” information
(business name, Federal Employer Identification Number (FEIN), etc.) should be that of the reporting business
entity. The numerical fields should be the sum of the figures for all owners included in the composite filing.
Header Information – REQUIRED ENTRIES
NOTE: 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.

Enter the Business Name, FEIN and tax year of the reporting business entity.

If the S/P/M is an individual, enter the Last Name, First Name, and Middle Initial, and their Social
Security Number.

If the S/P/M is an entity other than an individual, enter the Entity Name, and its FEIN.

Enter the Recipient S/P/M Type as appropriate:

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)

S - S-Corporation

L - Limited Liability Company (not a disregarded entity)

P - Partnership

T - Trust (filing a fiduciary return)

Instructions
Complete all applicable lines of Schedule BA-406.
Report the amount of credits earned in the applicable tax year. This schedule does not track the amount of credits
applied to offset tax, or carried forward.
Report the total of all credits earned on Line 11.
The total of each line(s) across all recipient S/P/Ms should equal the corresponding line(s) on Schedule BA-404,
Column B.
NOTE: The Investment Tax Credits, Lines 9 and 10, are only available to Business Income Tax filers. See
instructions for Schedule BA-404 for more information.
Schedule BA-406 Instructions
tax.vermont.gov

Page 1 of 1
Rev. 10/23

Extracted from PDF file 2023-vermont-form-ba-406-instructions.pdf, last modified October 2023

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More about the Vermont Form BA-406 (Instructions) Individual Income Tax TY 2023

Instructions for Credit Allocation Schedule

We last updated the Credit Allocation Schedule (Instructions) in February 2024, so this is the latest version of Form BA-406 (Instructions), fully updated for tax year 2023. You can download or print current or past-year PDFs of Form BA-406 (Instructions) directly from TaxFormFinder. You can print other Vermont tax forms here.

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Related Vermont Individual Income Tax Forms:

TaxFormFinder has an additional 51 Vermont income tax forms that you may need, plus all federal income tax forms. These related forms may also be needed with the Vermont Form BA-406 (Instructions).

Form Code	Form Name
Schedule BA-406	Credit Allocation Schedule Tax Credit

Download all VT tax forms View all 52 Vermont Income Tax Forms

Form Sources:

Vermont usually releases forms for the current tax year between January and April. We last updated Vermont Form BA-406 (Instructions) from the Department of Taxes in February 2024.

Show Sources >

About the Individual Income Tax

The IRS and most states collect a personal income tax, which is paid throughout the year via tax withholding or estimated income tax payments.

Most taxpayers are required to file a yearly income tax return in April to both the Internal Revenue Service and their state's revenue department, which will result in either a tax refund of excess withheld income or a tax payment if the withholding does not cover the taxpayer's entire liability. Every taxpayer's situation is different - please consult a CPA or licensed tax preparer to ensure that you are filing the correct tax forms!

Historical Past-Year Versions of Vermont Form BA-406 (Instructions)

We have a total of two past-year versions of Form BA-406 (Instructions) in the TaxFormFinder archives, including for the previous tax year. Download past year versions of this tax form as PDFs here:

2023 Form BA-406 (Instructions)

2022 Form BA-406 (Instructions)

TaxFormFinder Disclaimer:

While we do our best to keep our list of Vermont Income Tax Forms up to date and complete, we cannot be held liable for errors or omissions. Is the form on this page out-of-date or not working? Please let us know and we will fix it ASAP.