Earned income credit in Vermont
Varies
Does Vermont Have an Earned Income Tax Credit?
Short answer: Yes: Vermont offers the Vermont Earned Income Tax Credit, 38% of the federal EITC with qualifying children; 100% without qualifying children (refundable). Act 71 of 2025 raised the rate for workers without children to 100%, effective from tax year 2025. Filers who would qualify except for lacking an SSN (e.g., ITIN filers) are also eligible. Prorated for part-year residents.
Claim the federal EITC on Form 1040 (with Schedule EIC if you have qualifying children); state credits go on your state return.
Records to keep: Keep your state return, W-2s and 1099s (1099-R, SSA-1099), and any state credit worksheets. Check your state revenue department's current-year instructions before you file.
Earned income credit in Vermont
Varies
Individuals / Personal Taxes
Yes: Vermont offers the Vermont Earned Income Tax Credit, 38% of the federal EITC with qualifying children; 100% without qualifying children (refundable). Act 71 of 2025 raised the rate for workers without children to 100%, effective from tax year 2025. Filers who would qualify except for lacking an SSN (e.g., ITIN filers) are also eligible. Prorated for part-year residents.
Business justification
Yes: Vermont offers the Vermont Earned Income Tax Credit, 38% of the federal EITC with qualifying children; 100% without qualifying children (refundable). Act 71 of 2025 raised the rate for workers without children to 100%, effective from tax year 2025. Filers who would qualify except for lacking an SSN (e.g., ITIN filers) are also eligible. Prorated for part-year residents. Claim the federal EITC on Form 1040 (with Schedule EIC if you have qualifying children); state credits go on your state return.
Category
- Personal Tax Deductions