Child tax credit: Vermont families can receive up to $1,000 per child in 2024

More Vermont families can become eligible for a $1,000 child tax credit thanks to an expansion earlier this year.

To include more families who use an Individual Taxpayer Identification Number instead of a Social Security number, Vermont lawmakers expanded the child tax credit in June.

ELECTION SECURITY AT CENTER OF VOTING SOFTWARE DEBATE FOLLOWING RECOMMENDATIONS TO UPDATE

Vermont’s child tax credit is worth $1,000 per child for children under 5 years old. It is fully refundable, meaning that if families qualify for a refundable credit and the amount of the credit is larger than the tax they owe, they will receive a refund for the difference.

For example, if an eligible family owes $800 in taxes and qualifies for the $1,000 child tax credit, the household would receive a $200 refund.

The phaseout for the child tax credit begins at $125,000 annual income, with the child tax credit reduced by $20 for every $1,000 in additional income. For example, a family making $135,000 would receive $800. Families with incomes exceeding $175,000 are not eligible for the tax credit.

CLICK HERE TO READ MORE FROM THE WASHINGTON EXAMINER

The state recommends that grandparents, foster parents, or someone caring for siblings or other relatives check their eligibility with the IRS.

Lawmakers in Colorado, Maine, Maryland, New Mexico, New York, and New Jersey also expanded their respective child tax credits this year. Fourteen states offer child tax credits to offset the costs of raising children.