EITC and Tax Credits for Single Mothers in Vermont

What has changed since June 2026?

• 2025 filing extensions have ended. IRS Free File guided software for the 2025 return was offered through October 15, 2026; that is no longer an open filing window. Other ways to file late may still be available.
• Vermont’s 2025 Renter Credit claim window closed October 15. Vermont also approved a higher credit for claims filed in 2027. This change lasts one year. It does not apply to claims filed in 2026.
• Federal child care credit rules change for tax year 2026. The higher rate applies to 2026 care costs. Those returns are usually filed in 2027. It does not apply to a late 2025 return.

These dates and changes are shown in the Vermont filing calendar, the 2026 Vermont tax law summary, and the IRS child care credit guide.

Where to start

If you also need help with bills and benefits, the Vermont family assistance guide covers other programs. Tax credits are separate from food, health, and cash benefits.

Quick credit table for tax year 2025

Use Vermont’s official tax credits guide and the IRS pages below. A maximum is not an estimate of your actual refund.

Federal EITC and Vermont EITC

The EITC helps eligible people with lower earnings from work. Wages, tips, and net self-employment income may count. Child support, unemployment checks, Social Security benefits, investment interest, and public benefits do not count as earned income for EITC. Low income alone does not make you eligible.

Federal EITC income limits for 2025

These are 2025 federal limits. Both earned income and adjusted gross income must be below the applicable limit. Joint filers have different limits. For 2025, investment income must be $11,950 or less. Use the IRS EITC tables or the IRS EITC Assistant to check your return.

For federal EITC, you and each eligible child need a valid SSN. It must have been issued by the filing due date, including extensions. The child must meet rules for age, family ties, and where they lived. People without a qualifying child usually must be ages 25 through 64. A married but separated parent may qualify under a special rule. Filing separately does not always mean denial. Get tax help if this applies to you.

How Vermont EITC is different

Vermont’s 2025 Schedule IN-112 uses 38% of the federal EITC amount for people with qualifying children and 100% for people without qualifying children. These changes apply to the 2025 tax year. The state credit is refundable. Do not multiply your wages or federal Child Tax Credit by these percentages; the calculation starts with EITC.

No SSN or ITIN? Vermont has another path

Vermont has a different ID rule for its own EITC and Child Tax Credit. An eligible parent or child may not need an SSN or ITIN. This does not waive federal EITC or Child Tax Credit ID rules. Vermont has a separate paper process. First, prepare a federal form just to work out income and credits. This is called a pro forma return. Then send Vermont Forms IN-111 and IN-112 with your income proof, as directed. For an EITC claim with children, you may also need a pro forma Schedule EIC. If you have an ITIN, the process may be different. Read the state’s no-ID filing instructions and ask the tax office or a qualified preparer for help.

If you share custody, check the EITC rules. A dependent claim agreement may not give the other parent the EITC. The child’s actual residence matters. Ask Vermont Legal Aid’s tax program about an IRS notice or disputed child claim before making a change.

Federal and Vermont Child Tax Credits

Federal Child Tax Credit for 2025

The federal Child Tax Credit can lower federal income tax for eligible children under 17 at the end of 2025. The 2025 maximum is $2,200 per child. Up to $1,700 per child may be refundable through the Additional Child Tax Credit. Income and other rules apply. You do not get the full amount just because your child meets the age test.

For 2025, you need a valid SSN that permits work. On a joint return, at least one spouse needs one. Each qualifying child needs one too. These numbers must be issued by the filing deadline, including extensions. Other conditions include relationship, dependency, residency, and citizenship or residency rules. Use the IRS Child Tax Credit rules and Schedule 8812 instructions. A child with an ITIN alone cannot be used for this federal credit.

Vermont Child Tax Credit for 2025

Vermont offers a refundable Child Tax Credit. For 2025, it starts at $1,000 per eligible child age 6 or younger. This covers children born from 2019 through 2025 who meet the other rules. Your adjusted gross income can change the amount. Above $125,000 in adjusted gross income, Vermont lowers this credit. It takes away $20 for each extra $1,000, or part of $1,000. The credit ends at $175,000. Part-year residents may receive a prorated amount. Vermont’s state credit has its own rules, including the no-SSN pathway explained above.

Do you share custody or care for a foster child? Does your family have mixed ID types? Ask which adult can claim each credit. A federal dependent claim, federal EITC claim, and Vermont credit may have different tests. The Vermont 2025 law summary explains the expanded age rule and childless EITC change.

Child and dependent care credits

You may qualify if you paid for care so you could work or look for work. This includes care for a child under 13. It can also include care for another person who cannot care for themselves. Eligible expenses may include day care, a sitter, after-school care, or day camp. Overnight camp is not eligible. Payments to certain relatives or your own dependent cannot count. You need provider names, addresses, and tax IDs.

For tax year 2025, limits apply to care costs. You can generally count up to $3,000 for one eligible person. The cap is $6,000 for two or more. The 2025 federal credit is usually 20% to 35% of eligible costs. It is not refundable. It may be reduced by employer-paid dependent care benefits. Read 2025 Form 2441 instructions and Form 2441 when you file.

Vermont’s separate refundable child and dependent care credit is calculated as 72% of the qualifying federal credit amount. It does not pay back 72% of every dollar you spent. The 2026 federal changes for returns normally filed in 2027 are explained later in this guide.

If you need lower child care bills now, the Vermont child care subsidy guide explains programs that help with current care costs. Save statements from your provider showing what you paid yourself and what any subsidy covered.

Vermont Renter Credit

The Vermont Renter Credit helps some residents who rented a home. For 2025 rent, you had to live in Vermont all year. You had to rent a Vermont home for at least six months. You could not be someone else’s dependent. Your income also had to meet limits based on county and family size. You may qualify even if you did not have to file an income tax return.

The state uses local fair market rent to work out this credit. It looks at your county and family size. It also looks at income and months rented. For 2025, the rate is generally 10%, with a maximum of $2,500. The full-credit and partial-credit income levels vary by county; check the 2025 Vermont income charts and 2025 renter credit calculator. A person receiving rental subsidies may have the credit based on actual rent paid rather than the usual amount.

Renters normally file Form RCC-146. They can send it with a Vermont income tax return. They can also file it on its own through myVTax. You need the School Property Account Number (SPAN) for your rental unit. You no longer have to get a landlord certificate yourself. Your landlord must still send one to the state. If unrelated adults share a unit, special shared-claim rules may apply. Follow the official RCC-146 instructions.

Deadline warning: The final date to submit a new claim for 2025 rent was October 15, 2026. As of this article’s October 19 update, that deadline has passed, and Vermont says it will not accept later claims. If you already filed, check the state refund status tool. Call the state about a correction or missing payment. The different three-year income tax refund rule does not extend this renter credit deadline.

Changes for tax year 2026 and 2027 filing

The larger 2027 Vermont renter credit is a one-year law change, not an open extension for 2025 rent. The higher federal child care credit rate begins with tax year 2026. Keep your 2026 rent records, earnings, and child care receipts so you are ready to check next year’s forms.

How to file or get free tax help

1. Choose the tax year. For a late 2025 return, use 2025 forms. Save 2026 forms for 2026 income.
2. Check if you owe tax or expect a refund. If you owe, filing and paying as much as you can may limit further charges. If you expect a refund, check how long you have to claim it.
3. Ask about free help. Vermont’s free tax preparation page lists community options. The IRS VITA/TCE program offers free basic tax preparation for eligible filers. Many sites are open only during tax season; ask if they can help with a late return or amended return now.
4. Check online options. IRS Free File guided software for 2025 federal returns was available to people with adjusted gross income of $89,000 or less through October 15, 2026. That guided filing window has ended. Ask a provider or tax-help site about current late-filing options rather than assuming the service is open.
5. Keep a record. Save copies of your return, all attachments, proof of delivery or e-file acceptance, and letters.

Federal tax refund claims have their own time limits, often up to three years under the IRS refund claim rules. Vermont says its own claims for overpaid income tax also have a time limit tied to the return due date. These are not permission to file a late Renter Credit claim. For more background on low-cost tax help, see the national tax assistance guide.

Documents to gather before filing

Keep original documents safe. For a notice, send copies unless the agency asks for originals. Do not send ID photos, bank details, or tax records to an unknown link in a text or email.

If a refund is late, denied, or reduced

Check a federal refund at the IRS refund tracker. Vermont also lets you check an income tax return or renter credit status through its official portal. Use the exact refund amount and the ID details shown on your filed return.

Federal refunds claiming EITC or the refundable Additional Child Tax Credit are generally held until at least mid-February for early-season filers. Other delays can happen if the IRS or Vermont needs proof of income, identity, or a child’s residence. A refund may also be reduced to pay an eligible debt. Read the notice to learn which agency took action.

1. Read the date and reason. Note whether it is an IRS or Vermont letter, and the reply or appeal deadline.
2. Gather proof. Put wages, school records, child residence proof, and return copies together.
3. Use the official response method. Vermont’s tax site offers a “Respond to Correspondence” path; the IRS letter gives its own directions.
4. Ask for help if stuck. Legal Services Vermont screens tax questions for Vermont Legal Aid at 1-800-889-2047. A low-income taxpayer clinic or the Taxpayer Advocate Service may also be able to help with qualifying IRS problems.

Do not assume all denials have the same deadline. Follow the time limit printed on your own letter and ask the relevant office about review, amendment, or appeal rights.

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