Vermont Earned Income Tax Credit

A proposal has been made to increase the Vermont EITC to 55% for families with children. This change would increase the state EITC by $2,380 for a family with one child and $4,425 for a family with three children.¹

EITC offers working families in Vermont a credit of up to $8,046 to help make ends meet. A single mother of two earning under $57,310 is eligible to claim it.

As one of 31 states that supplement the federal EITC with their own, Vermont piggybacks onto the federal EITC by adding an additional 38% to the federal credit, and is fully refundable for all qualifying filers. That’s an additional $3,057 for a family of three or more.

FAQ

How much is Vermont Earned Income Credit?

For tax years beginning on or after January 1, 2025, workers without qualifying children receive a credit equal to 100% of the federal EITC amount.² For all other eligible filers, it is 38% of the federal amount.

Can I get a refund if I owe no tax in Vermont?

If your Vermont EITC is $3,057 and you owe $2,000 in state income tax, the credit cancels your tax bill and you receive the remaining $1,057 as a refund as illustrated in the table below:

In addition, any family with dependent children who receives the Vermont EITC is automatically income eligible for food benefits through 3SquaresVT.

How do I claim the Vermont EITC?

To claim the credit, complete Schedule IN-112 (Vermont Earned Income Tax Credit section) and attach it to your Vermont income tax return (Form IN-111). Part-year residents also complete Schedule IN-113 first.

Vermont Department of Taxes
Individual Income Tax Division
(802) 828-2865