2081671 / Pixabay
With the 2023 tax season nearing the end, it is important that you claim all the credits you are eligible for. One such credit that Vermont officials are calling attention to is a new child tax credit . This Vermont new child tax credit offers financial support to families with children under the age of 6.
Vermont New Child Tax Credit: Who Will Get It?
In May of last year, Gov. Phil Scott signed into law (h.510 ) a Vermont new child tax credit that offers up to $1,000 annually per child under 6 to eligible families. In 2023, the program is expected to benefit over 95% of kids under 6 years of age, or about 34,000 children, in the state.
Get The Full Ray Dalio Series in PDF
Get the entire 10-part series on Ray Dalio in PDF. Save it to your desktop, read it on your tablet, or email to your colleagues
q4 2022 hedge fund letters, conferences and more Gates Capital Management Reduces Risk After Rare Down Year [Exclusive]
Gates Capital Management's ECF Value Funds have a fantastic track record. The funds (full-name Excess Cash Flow Value Funds), which invest in an event-driven equity and credit strategy, have produced a 12.6% annualised return over the past 26 years. The funds added 7.7% overall in the second half of 2022, outperforming the 3.4% return for read more
Families with an adjusted gross income of up to $125,000 will qualify for the full credit amount, while those with income between $125,000 and $175,000 will get partial credit.
Families with low income aren't required to file tax returns , and thus, risk missing out on the credit. Such families are recommended to file taxes to claim this Vermont new tax credit. Since the credit is refundable, the amount will be refunded if the credit exceeds the tax liability.
“Even Vermonters who are not required to file a tax return because their income is below the filing requirement may want to consider filing if they qualify for these credits,” says Vermont's official Government site .
April 18 is the deadline to file taxes. For more information on the Vermont new child tax credit, visit tax.vermont.gov .
Apart from this new credit, the state this year increased the earned income tax credit and the remote child and dependent care credit to 72% and 38% of the federal credit, respectively. Families eligible for the child tax credit are likely to meet the requirements for the other two credits as well.
Is This New Credit Needed?
In 2021, the U.S. Census Bureau found that Vermont families with children below 17 years are more likely to experience poverty than families without children or with adult children. Those in favor of the child tax credit believe the new credit would offer much-needed relief to families facing economic hardship.
When the new child tax credit was approved last year, the House Ways and Means Committee Chair Janet Ancel called it the“most significant” tax relief package for Vermonters. The future of this Vermont child tax credit, however, is unsure.
The state Senate is considering removing the new credit so as to pay for the expansion of child care subsidies. A proposal for the same was advanced by the Senate Finance Committee last Wednesday.
This proposal, however, is expected to face an uphill battle in the House. Whether or not the lawmakers scrap this credit, eligible families will receive the child tax credit this filing season.