The law in plain English
Return deadline
Under Vt. Stat. tit. 9, Section 4461, the deposit response usually has to be sent within 14 days of the move-out timeline described by the state rule.
Required notice
Vermont generally does not impose a statewide deposit cap, and the landlord usually has 14 days after the tenant vacates to send the refund or explain the withholding, with a 60-day rule for certain seasonal rentals.
This dispute type
Once the Vermont deadline passes, the dispute stops being only about the deductions and becomes a deadline-compliance problem too. A landlord may still argue damage existed, but Vt. Stat. tit. 9, § 4461 sets the clock for returning the balance and explaining any amount withheld.
Penalty leverage
If the withholding was wrongful or in bad faith, the exposure allowed under the statute is: Landlord forfeits the right to retain any portion; willful noncompliance: up to double the amount withheld, plus attorney's fees