If you:

• work, AND
• Had children living with you, AND
• Earned less than $43,998 ($49,078 if married), THEN

You could qualify!

Earned Income Credit (EIC)

A special tax benefit for working people who earn low or moderate incomes. Workers who qualify for the EIC and file a tax return can get back some or all of the federal income tax they paid during the past year. They may also get extra cash back from the IRS.

Child Tax Credit

A federal tax credit worth up to $1,000 in 2011 for each qualifying child under age 17 claimed on the worker’s tax return.

Child and Dependent Care Expenses Tax Credit

If you paid someone to care for a qualifying individual so you (and your spouse if you are married) could work or look for work, you may be able to claim the credit for child and dependent care expenses. This credit can be used to lower the amount of taxes you owe and is 24% of your federal credit.

Vermont Low Income Child And Dependent Care Tax Benefits.

You may qualify for a low income child and dependent care tax credit on your state income taxes if you use a "qualifying provider" (meaning the provider is accredited or has 3, 4, or 5 STARS). This is a 50% refundable credit based on your federal Child and Dependent Care Expenses Credit. Please note: If you choose to take this credit on your Vermont Tax Form, you cannot apply for the Child and Dependent Care Expenses Tax Credit. Learn which providers qualified for the past tax year .

For more information:

About the tax credit – http://www.state.vt.us/tax/creditslowincome.shtml

For information about the Vermont Step Ahead Recognition System (STARS).

Resources:

General Tax Credit Flyer

Low Income Child and Dependent Care Tax Credit Flyer

Child Tax Credit and SSN/EIN Flyer