Vermont bill proposes to phase in a full income tax exemption for Social Security benefits over eight years.

The bill proposes to phase in a full income tax exemption for Social Security benefits over eight years. The existing partial exemption will exempt a larger portion of Social Security benefits each year for seven years, with Social Security benefits becoming fully exempt in the eighth year. The exemption is based on the taxpayer's federal adjusted gross income and filing status.

Vermont bill proposes to phase in a full income tax exemption for Social Security benefits over eight years.

The bill proposes to phase in a full income tax exemption for Social Security benefits over eight years. The existing partial exemption will exempt a larger portion of Social Security benefits each year for seven years, with Social Security benefits becoming fully exempt in the eighth year. The exemption is based on the taxpayer's federal adjusted gross income and filing status.