Financial Assistance / Child Tax Benefits

Child Tax Benefits

Vermont offers several child tax benefits that can provide significant financial support to eligible families. Here are the key child tax benefits available in Vermont:

Vermont Child Tax Credit

Vermont's Child Tax Credit is a robust benefit for families with young children:

  • Provides $1,000 annually per child under 6 years old

  • Fully refundable, meaning families can receive the full value even if they have low or no earnings

  • Available to families with adjusted gross incomes up to $125,000

  • Families earning between $125,000 and $175,000 receive a partial credit

  • Over 95% of Vermont children under 6 (approximately 34,000) are expected to benefit

To claim this credit, you must file a Vermont tax return, even if your income is too low to normally require filing

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Vermont Earned Income Tax Credit (EITC)

Vermont offers a state-level EITC that complements the federal EITC:

  • Worth 38% of the federal EITC

  • Fully refundable

  • Automatically available to all Vermont taxpayers who qualify for the federal EITC

Child and Dependent Care Tax Credit

Vermont provides two versions of this credit:

  1. Standard Credit:

    • 72% of the federal Child and Dependent Care Tax Credit

    • Available to all Vermont taxpayers who qualify for the federal credit

  2. Low Income Child and Dependent Care Credit:

    • 50% of the federal Child and Dependent Care Tax Credit

    • Available to single filers with adjusted gross income under $29,999 or joint filers under $39,999

    • Requires use of an accredited child care provider

How to Claim These Benefits

To access these benefits:

  1. File a Vermont tax return, even if your income is low.

  2. Use free tax preparation services if eligible:

    • In-person filing assistance through local VITA (Volunteer Income Tax Assistance) programs for those making around $60,000 or less

    • Online filing options like GetYourRefund.org for households with income under $66,000

Remember, these credits can provide substantial financial support to eligible families, so it's worth taking the time to determine your eligibility and file for them.