Credit Options for Child and Dependent Care

Vermont offers tax relief to employees who have dependent care expenses in order to stay in the workforce. Taxpayers have two options for a child and dependent care credit:

  1. Credit for Child and Dependent Care or
  2. the Low Income Child and Dependent Care Credit.

You cannot take both credits.

Credit for Child and Dependent Care
 

If you are eligible for the federal Child and Dependent Care Credit you qualify for the state tax credit.

Credit Amount: The tax credit amount is 24% of the federal Child and Dependent Care Tax Credit.

Credit Limitation: You must be eligible for and receive the Federal tax credit. This credit is nonrefundable.
 

Low Income Child and Dependent Care Credit

To qualify for this credit, you must meet the following criteria:

Learn more from the Agency of Human Services

Credit Amount:  The tax credit amount is 50% of the federal child and dependent care tax credit.

Credit Limitation: You must be eligible for and receive the Federal tax credit. This is a refundable credit.
 

Go back to tax adjustments or view additional tax credits.