SCHEDULE IN-117
              Credit for Income Tax Paid to Other State or Canadian Province
                                                                                                                 Page 1
                       (For full-year and some part-year Vermont residents)

                                       General Instructions
Who needs to file? Full- or part-year residents who earn income in another state or Canadian province while a 
              Vermont resident.
              A credit may be allowed against 2020 Vermont income tax for income tax paid in the 2020 tax year 
              to another state or Canadian province on income that is taxed by both Vermont and the other taxing 
              jurisdiction.  
Supporting Documents Required:  Copy of 2020 income tax return filed in the other state(s).  For Canadian 
              province(s), copy of 2020 provincial income tax return filed, copy of federal Form 1116, Foreign 
              Tax Credit (Individual, Estate, or Trust), and copy of Revenue Canada income tax return.  Convert 
              amounts on Canadian returns to U.S. dollars. 
              Please see tax.vermont.gov for additional information on limitations if you have capital gain, 
              business income, or made adjustments to arrive at your federal Adjusted Gross Income.
                                                                                                                 INSTR  (Place at FIRST page)
More Than One State Or Canadian Province?                                                                        Instr. pages 
              •  Complete a Schedule IN-117 for each state or Canadian province.  Do NOT combine the 
                   income and credit of all states or provinces on one Schedule IN-117.

              •  Add Line 21 from each Schedule IN-117 to calculate the tax credit entry on Form IN-111, 
                   Vermont Individual Income Tax Return, Line 17.                                                1 - 2

              •  Attach all Schedules IN-117 and the supporting documents required.

The combined total of Line 2 cannot exceed the amount reported on Form IN-111, Line 1.

                               Line-by-Line Instructions
Line 1        Enter the name of the state or Canadian province where you paid income tax.  Use the standard 
              two-letter abbreviation. 
Line 2        Enter Adjusted Gross Income (AGI) taxed in another state or Canadian province that is also subject 
              to Vermont income tax.  The AGI for the other state or Canadian province cannot exceed the 
              amount on Form IN-111, Line 1.  NOTE:  If you have paid taxes in more than one state, you must 
              file a Schedule IN-117 for each state.  The total on Schedule IN-117, Line 2, cannot exceed the 
              amount on Form IN-111, Line 1.
Lines 3 - 9   Adjustments for bonus depreciation, non-Vermont state and local obligations, and U.S. government 
              interest income are made to create the income comparable to the AGI used for Vermont income tax 
              purposes.

              •  The total on Schedule IN-117, Line 6, cannot exceed the amount on Schedule IN-112, Line 8.

              •  The total on Schedule IN-117, Line 7, cannot exceed the amount on Schedule IN-112, Line 6.
Line 10       Enter the AGI from Form IN-111, Line 1.   
Lines 11 - 16 Adjustments for bonus depreciation, non-Vermont state and local obligations, and U.S. government 
              interest income are made to make the income comparable to the other state or Canadian province.
Line 17       Subtract Line 16 from Line 13.  If Line 16 is greater than Line 13, enter -0-.
Line 18       Enter the Vermont income tax calculated on Form IN-111, Line 14.

                                                                                   Schedule IN-117 Instructions
                                                                                                  Page 1 of 2
                                                                                                      Rev. 10/20

Line 19 Divide Line 9, Modified Adjusted Gross Income for the other state or Canadian province, by 
        Line 17, Modified Adjusted Gross Income for Vermont, and multiply that result by Line 18.
Line 20 Enter the amount of income tax paid to the other state or Canadian province.  This amount is 
        income tax paid to the state or Canadian province – not the amount of withholding.  City and 
        county tax paid to the other state is not allowed.  Credit for the Canadian provincial income tax  Page 2
        does not include the portion used as a foreign credit on federal Form 1040, U.S. Individual Income 
        Tax Return. 
Line 21 Enter the lesser of Line 19 or 20.  This is your credit for income tax paid to another state or 
        Canadian province.  If this is the only state or province, also enter on Form IN-111, Line 17.  
        Otherwise, see instructions for “More Than One State or Canadian Province.”

                                                                                                           INSTR  (Place at LAST page)
                                                                                                           Instr. pages 

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                        Schedule IN-117 Instructions
                                                                                   Page 2 of 2
                                                                                   Rev. 10/20