Vermont § 5935 - Joint returns

§ 5935. Joint returns

• (a) With respect to State income tax refunds under chapter 151 of this title and renter
  credit payments due a claimant under chapter 154 of this title, when the Department
  transfers funds payable on a joint return to a claimant agency and only one of the
  spouses filing the return is identified as a debtor of the claimant agency, the nondebtor
  spouse may, within 30 days after the date of mailing of the notice to the taxpayer
  described in subsection 5934(c) of this subchapter, petition the Department in writing
  for a return of that portion of the refund attributable to the income of the nondebtor
  spouse. The Commissioner shall thereafter conduct a hearing at which the nondebtor
  spouse shall bear the burden of establishing what portion of a refund transferred
  to a claimant agency, if any, is attributable to the nondebtor’s income. (b) With respect to payments due a claimant under chapter 154 of this title based on property
  ownership, when the Department transfers funds payable on a claim filed with a joint
  return to a claimant agency and only one of the spouses filing the return is identified
  as a debtor of the claimant agency, the nondebtor spouse may, within 30 days of the
  date of mailing of the notice to the taxpayer described in subsection 5934(c) of this title, petition the Department in writing for a return of that portion of the claim equal
  to the ownership share that the nondebtor spouse holds in the property upon which
  the claim is based. If the property is held as tenancy by the entirety, the claim
  shall be divided equally. The Commissioner shall thereafter conduct a hearing at which
  the nondebtor spouse shall bear the burden of establishing his or her ownership interest
  in the property. (c) The final determination of the Commissioner regarding the amount of a refund attributable
  to the income of a nondebtor spouse or the ownership interest of a nondebtor spouse
  may be appealed in the same manner as income tax appeals under subsection 5885(b) of this title. (d) Upon receipt of a petition under this section, the Department shall notify each claimant
  agency to which funds payable on a joint return or claim have been transferred that
  the petition is pending. If it is established that any amount of a refund or claim
  transferred to a claimant agency is attributable to the income or ownership interest
  of a nondebtor spouse, that amount shall be refunded to the nondebtor spouse. (Added 1981, No. 228 (Adj. Sess.), § 1, eff. May 4, 1982; amended 2003, No. 70 (Adj. Sess.), § 45, eff. March 1, 2004; 2021, No. 105 (Adj. Sess.), § 549, eff. July 1, 2022; 2023, No. 6, § 383, eff. July 1, 2023.)