Vermont has made the following changes for the 2023 tax year:
Child Tax Credit
- Provides a $1000 credit per eligible dependent age 5 or younger
- Refundable credit
- Phase-out of credit begins when AGI is greater than $125,000
Child and Dependent Care Credit
Vermont increased the state credit to be 72% of the federal version of credit and made it fully refundable.
Earned Income Credit
Vermont increased the credit to be 38% of the federal version of credit.
Student Loan Interest Deduction
Vermont created a deduction for all interest paid on student loans.
Retirement Income Exclusions
- "Increases income eligibility thresholds for Social Security benefits exclusion by $5,000.
- Creates new exclusions for the first $10,000 of retirement income from military, Civil Service Retirement System (CSRS), or other eligible retirement systems not covered by Social Security."
Affordable Housing Tax Credit for Manufactured Homes
"Increases the amount available for affordable housing tax credits used for manufactured home purchase and replacement by $250,000 per year."
For more information, please click here.