You could qualify for child tax benefits if you:
- Had children living with you; and
- Earned less than $49,194 ($54,884 married filing jointly).
Earned Income Tax Credit (EITC)
A special tax benefit for working people who earn low or moderate incomes. Workers who qualify for the EITC 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. 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 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 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. More information is available on the Vermont Department of Taxes website.
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 2018 tax year.
Information about the requirements for child care programs to give families a tax identification number is available in the Child Tax Credit and SSN/EIN Flyer.
Original post via the VT Agency of Human Services
Photo credit: https://blog.turbotax.intuit.com/tax-news/irs-accepting-e-files-file-your-taxes-today-12826/