>Vermonters who have young children and make less than $125,000 of annual income — including those who make no income at all — are eligible to receive $1,000 per child in a refundable tax credit for the 2022 filing year. Filers who make up to $175,000 are eligible for partial credit.

…..

>More than 34,000 children are expected to benefit from the tax credit this year, according to the state’s Legislative Joint Fiscal Office. However, even as Vermont Tax Department officials promote the new credit, it faces a threat in the Legislature. The state Senate is already considering doing away with the credit to help pay for an expansion of child care subsidies. A proposal to cut the benefit, advanced by the Senate Finance Committee last Wednesday, still needs approval by the full chamber, after which it would likely face an uphill battle in the House.

>Regardless of the outcome of that legislative debate, the credit remains available to families this filing season.

…..

>While the tax credit is currently available to anyone making under $125,000 per year— including those who make no income at all — many families with low earnings are not required to file tax returns and risk missing out on the credit.

>State Tax Commissioner Craig Bolio is encouraging those who are eligible to file, regardless of income, in order to receive the credit.

….

>Alongside the child tax credit, the Vermont earned income tax credit and the child and dependent care credit increased this year to 38% and 72% of the federal credit respectively. Bolio said families who qualify for the child tax credit might meet the requirements for all three.

Article continues….