2015, 2016 Vermont Earned Income Tax Credit EITC

Working Vermonters with income under $53,267 may qualify to get a credit or refund on your taxes. It’s called EITC. You can get EITC even if you don’t owe taxes. If you receive the VT EITC and have dependent children then you likely qualify for 3SquaresVT – a nutrition program that helps you buy more food. When kids get 3SquaresVT benefits, they also get free school meals.

 

What is the Vermont EIC?

Vermont’s income tax, on the other hand, is one of the most progressive in the country. Thanks to the EITC and other credits, the poorest fifth of Vermont taxpayers—with income less than $20,000—receive slightly more money than they owe in income taxes. For the top 1 percent, Vermont income taxes are equal to 5.2 percent of income. Overall, however, Vermont’s tax system is still regressive: the wealthiest Vermonter’s pay a lower percentage of their income in taxes than low and middle income Vermonters.

 

More Information about Vermont Earned Income Tax Credit EITC

The purpose of the Vermont Earned Income Tax Credit (EITC) is to help Vermonters remain in the workforce. Any taxpayer entitled to a federal earned income tax credit may claim a Vermont EITC. For more information about this tax credit, contact the Vermont Department of Taxes.

Credit Amount: The credit amount is 32% of the federal credit on income earned or received in Vermont.

Credit Limitation: You must be qualified for the federal EITC. This is a refundable credit.

 

How to Claim Vermont EITC

To claim EITC in Vermont, you must:

  • Meet federal EITC requirements
  • Be a resident or part-year resident of Vermont
  • Have qualifying children or
  • Be at least age 25 but under age 65 at the end of the tax year for which you are filing

If you do not have qualifying children and do not meet age requirements, you are not eligible for the Vermont EITC.

EITC and 3SquaresVT (food stamps)

Families who get the Vermont EITC and have dependent children qualify for 3SquaresVT (food stamps) without having to meet the income test that is usually required. Qualifying for 3SquaresVT also makes children eligible for free school meals. This flyer explains more (link is external).