Vermont Earned Income Tax Credit
Last updated August 2026
Vermont's Earned Income Tax Credit is a state credit that adds to the federal EITC. It can lower the tax you owe, and it can even pay you cash. You claim it on your Vermont income tax return, so it comes through when you file your taxes.
The size of the credit depends on your family. If you claim one or more qualifying children, the Vermont credit is 38 percent of your federal EITC. If you do not claim qualifying children, the Vermont credit is 100 percent of your federal EITC. This is set in state law at 32 V.S.A. section 5828b.
The credit is refundable, which is the part that helps most. If your credit is larger than the income tax you owe, the extra is paid to you. So even a filer who owes little or no tax can still get money back from this credit.
To claim it, you generally must qualify for the federal EITC first. A resident or part-year resident who is entitled to the federal credit is entitled to the Vermont credit. For a part-year resident, the credit is figured for the share of income earned while living in Vermont.
You claim the Vermont credit on Schedule IN-112 with your Vermont income tax return. The Vermont Department of Taxes lists it among the state's personal income tax credits, so it is a standard part of filing, not a special application.
Free help can file both credits for you. VITA tax help can prepare your federal and Vermont returns at no cost and claim both the federal and Vermont credits. If you are not sure whether you qualify, filing with VITA is a low-risk way to find out.
Updated August 2026 Program details can change — confirm with the program directly.
Who qualifies
- You generally must qualify for the federal Earned Income Tax Credit and file a Vermont income tax return; the Vermont credit is 38 percent of your federal EITC
- The Vermont credit is available to qualifying residents even if you, your spouse, or a qualifying child does not have a Social Security number and you file with an ITIN
You may qualify. The program makes the final decision.
How to apply
- 1
First, check whether you qualify for the federal Earned Income Tax Credit.
- 2
File a Vermont income tax return.
- 3
Claim the Vermont credit on Schedule IN-112.
- 4
Use 38 percent of your federal EITC if you claim qualifying children, or 100 percent if you do not.
- 5
Use free VITA tax help to prepare and file both returns at no cost.
What the application looks like
Common questions
How much is the Vermont EITC?
38 percent of your federal EITC if you claim one or more qualifying children, and 100 percent of your federal EITC if you do not, under 32 V.S.A. section 5828b.
Can it pay me cash?
Yes. The credit is refundable, so if it is larger than the income tax you owe, the extra is paid to you.
How do I claim it?
Claim it on Schedule IN-112 with your Vermont income tax return. You generally must qualify for the federal EITC first.
Is there free help to file?
Yes. Free VITA tax help can prepare your federal and Vermont returns and claim both credits at no cost.
Not sure this is the right program for your situation?
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