You could qualify for child tax benefits if you:
- had children living with you, and
- Earned less than $51,464 ($57,414 married filing jointly).
If you receive any letters from the IRS, please save them! They are essential to preparing your 2021 tax return and ensuring that you receive any refunds you qualify for.
Earned Income Tax Credit (EITC)
The EITC is a benefit for working people who earn low to moderate incomes. Workers who qualify for the EITC and file a tax return can get back some or all the federal income tax they paid during the past year. They may also get a refund from the IRS. More information is available on the IRS website.
Child and Dependent Care Expenses Tax Credit
If you paid someone to care for a qualifying individual so you (and your spouse if you're married) could work or look for work, you may be able to claim the credit for child and dependent care expenses. It can be used to lower the amount of taxes you owe and is 24% of your federal Child and Dependent Care Credit. More information is available on the Vermont Department of Taxes website.
Vermont Low-Income Child and Dependent Care Tax Benefits
You may qualify for a low-income child and dependent care credit on your state income taxes if you used a "qualifying provider," meaning the provider is accredited or has 3, 4, or 5 STARS. Learn which providers qualified for the 2021 tax year. This is a 50% refundable credit based on your federal Child and Dependent Care Credit. More information is available on the Vermont Department of Taxes website.
Please note: If you choose to take the Vermont Low-Income Child and Dependent Care Credit on your Vermont Tax Form, you cannot apply for the Child and Dependent Care Credit.
- Information about the requirements for child care programs to provide families a tax identification number is available in the Child Tax Credit and SSN/EIN Flyer.
- The Volunteer Income Tax Assistance (VITA) program provides tax preparation and filing assistance at no cost to qualifying individuals. To see if you qualify or to find a VITA site near you, please visit www.irs.gov/VITA.