Tax Benefits and Credits for Immigrants in Vermont in 2025

Key Takeaways

• Vermont expands EITC and Child Tax Credit eligibility to immigrants using SSN or ITIN from 2025 tax year.
• Vermont Child Tax Credit now covers children aged six or younger, no federal TIN needed for claims.
• Receiving Vermont EITC grants automatic access to 3SquaresVT food assistance without affecting immigration status.

As of July 11, 2025, Vermont has made important changes to its tax benefits and credits, directly affecting immigrants living and working in the state. These updates include expanded access to the Vermont Earned Income Tax Credit (EITC), the Vermont Child Tax Credit (CTC), and other state-level programs. The changes are designed to make it easier for immigrants—regardless of their federal taxpayer identification status—to receive financial support through the state tax system. Here’s a clear summary of what has changed, who is affected, what actions are required, and what these updates mean for pending and future applications.

What Changed in 2025

Vermont has expanded eligibility for both the Vermont Earned Income Tax Credit and the Vermont Child Tax Credit, making these benefits more accessible to immigrants. The most significant changes include:

• Immigrants can now claim the Vermont Earned Income Tax Credit using either a Social Security Number (SSN) or an Individual Taxpayer Identification Number (ITIN).
• The Vermont Child Tax Credit is now available to families with children aged 6 or younger, and immigrants do not need a federal taxpayer identification number (TIN) to claim this credit.
• Social Security income exclusions have increased, which may lower taxable income for immigrant retirees.
• Receiving the Vermont EITC now automatically qualifies families for 3SquaresVT, Vermont’s food assistance program.
• Legislation S.51, effective January 1, 2025, expanded these benefits and removed some previous barriers for immigrant families.

These changes reflect Vermont’s commitment to supporting all working families, including immigrants, and align with a growing trend among states to make tax credits more inclusive.

Who Is Affected

These updates impact a wide range of immigrants in Vermont, including:

• Immigrants who file taxes with an ITIN instead of an SSN.
• Families with young children, especially those with children aged 6 or younger.
• Immigrant retirees receiving Social Security income.
• Part-year residents who moved into or out of Vermont during the tax year.
• Immigrants who may not have a federal TIN but are otherwise eligible for state tax credits.

If you are an immigrant living in Vermont and working, have children, or are retired, these changes likely affect you. Even if you have not filed taxes before or do not owe any state tax, you may still be eligible for these refundable credits.

Effective Dates

• All changes are effective for the 2024 tax year, with tax returns due by April 15, 2025.
• Legislation S.51, which expanded eligibility and removed TIN requirements for certain credits, took effect on January 1, 2025.
• The expanded age limit for the Vermont Child Tax Credit (now covering children aged 6 or younger) also applies to the 2024 tax year.

Required Actions for Immigrants

To receive these benefits, immigrants must take the following steps:

1. File a Vermont state income tax return for the 2024 tax year, even if you do not owe any tax.
   • You can file using either an SSN or an ITIN.
   • If you do not have an SSN or ITIN, you may still be eligible for the Vermont Child Tax Credit under the new rules.
2. Claim the Vermont Earned Income Tax Credit and/or the Vermont Child Tax Credit on your state tax return.
   • The EITC is calculated as a percentage of the federal EITC, but you can claim it even if you do not qualify for the federal version due to your immigration status.
   • The Child Tax Credit is $1,000 per qualifying child aged 6 or younger.
3. If you are a part-year resident, report only the income earned while living in Vermont. Credits will be prorated based on your Vermont income.

4. If you receive the Vermont EITC, you are automatically eligible for 3SquaresVT (food assistance).
   • No separate application is needed for this benefit, and it does not affect your immigration status or green card application.
5. Seek free tax filing help if needed.
   • IRS-certified volunteers and local organizations can help you file your taxes and claim these credits. You can make appointments by dialing 2-1-1 or visiting GetYourRefund.org or MyFreeTaxes.com.

Detailed Overview of Vermont Tax Benefits for Immigrants in 2025

Vermont Earned Income Tax Credit (EITC)

• Eligibility:
  Immigrants can claim the Vermont EITC if they file taxes with an SSN or ITIN. This means even if you do not have a Social Security Number, you can still get this benefit if you have an ITIN. Vermont is one of ten states that now allow ITIN holders to claim the EITC, making it easier for immigrants to receive support.

• Credit Amount:
  • For families with qualifying children, the Vermont EITC is 38% of the federal EITC amount.
  • For filers without qualifying children, the Vermont EITC is 100% of the federal EITC.
  • For example, a family with one child could receive up to about $1,601 in state EITC.
• Income and Household Size:
  The amount you get depends on your earned income, how many children you have, and your household size. The credit is refundable, so if your credit is more than the tax you owe, you get the extra money as a refund.

• Special Eligibility:

  • Individuals 19 or older who are not students may qualify even without children.
  • Homeless youth or former foster youth who are at least 18 and working can qualify, even if they are students.
• Part-Year Residents:
  If you moved into or out of Vermont during the year, your EITC will be based only on the income you earned while living in Vermont.

• Automatic Food Assistance:
  If you receive the Vermont EITC, you are automatically eligible for 3SquaresVT, Vermont’s food assistance program. This helps families buy groceries and does not affect your immigration status.

Vermont Child Tax Credit (CTC)

• Credit Amount:
  The Vermont Child Tax Credit is $1,000 per qualifying child aged 6 or younger. This is an increase from previous years, which only covered children up to age 5.

• Income Limits:

  • Families with incomes up to $125,000 get the full credit.
  • Families with incomes up to $175,000 may get a partial credit.
• Immigrant Eligibility:
  The 2025 law (S.51) allows immigrants to claim the Vermont Child Tax Credit even if they do not have a federal TIN. This is a major change, making it possible for more immigrant families to get this help.

• Part-Year Residents:
  The credit is prorated for part-year residents, based on the income earned while living in Vermont.

• Refundable Credit:
  Like the EITC, the Child Tax Credit is refundable. If your credit is more than your tax owed, you get the extra as a refund.

Other Vermont Tax Benefits for Immigrants

• Social Security Income Exclusion:
  Immigrant retirees can now exclude more of their Social Security income from Vermont taxes. For 2025, up to $55,000 (single filers) or $70,000 (joint filers) can be excluded. This means less of your retirement income is taxed.

• Premium Tax Credits for Health Insurance:
  Immigrants who plan to file federal taxes can get help paying for health insurance through Vermont Health Connect. You must meet certain income and filing status rules.

• 3SquaresVT Food Assistance:
  If you get the Vermont EITC, you are automatically eligible for 3SquaresVT. This benefit does not affect your immigration status and is not reported to immigration authorities.

Filing Requirements and Procedures

• Who Must File:
  Immigrants on visas, green cards, or other statuses must file a Vermont state income tax return if they meet the income threshold. You can use an SSN or ITIN.

• Deadline:
  Tax returns for 2024 income must be filed by April 15, 2025 to claim these credits.

• How to File:

  • You can file online, by mail, or with help from free tax assistance programs.
  • If you need an ITIN, you can apply using IRS Form W-7.
• Where to Get Help:
  • Call 2-1-1 for appointments with IRS-certified volunteers.
  • Visit GetYourRefund.org or MyFreeTaxes.com for free online help.
  • Local organizations like CVOEO offer in-person support.

Recent Legislative and Policy Developments

• S.51 Legislation:
  Effective January 1, 2025, this law expanded the Vermont Child Tax Credit, removed the need for a federal TIN for certain credits, increased Social Security income exclusions, and made it easier for immigrants without TINs to get the EITC.

• Increased Inclusivity:
  Vermont is now one of ten states that allow ITIN holders to claim the EITC, showing a strong commitment to supporting immigrant families.

• Automatic Benefits Linkage:
  Getting the EITC now means you are also eligible for food assistance and free school meals, making it easier for families to get the help they need.

Expert Perspectives and Stakeholder Views

• Advocates and Policy Analysts:
  Experts say that Vermont’s refundable credits and expanded eligibility help reduce poverty and financial stress for working families, especially those without traditional documentation.

• State Officials:
  The Vermont Department of Taxes offers guidance and support to help immigrants understand the rules and claim credits. The state aims to balance tax compliance with making sure everyone can get the help they need.

• Community Organizations:
  Groups that help immigrants stress the importance of free tax preparation and outreach, so eligible families do not miss out on these valuable benefits.

Implications for Pending Applications and Future Filings

• If you have already filed your 2024 Vermont tax return and did not claim these credits, you may be able to file an amended return to receive them.
• If you are planning to file, make sure to include all eligible credits, even if you do not have a federal TIN.
• If your immigration status changes during the year, you may still be eligible for prorated credits based on your Vermont income.

Future Outlook

Vermont’s tax policies are moving toward even greater inclusivity for immigrants. Lawmakers are considering further expansions in eligibility and credit amounts. The state is also expected to keep linking tax credits with social programs like 3SquaresVT, making it easier for immigrant families to get support. Changes in federal tax policy may also affect how Vermont calculates its credits in the future.

Official Contacts and Resources

• Vermont Department of Taxes:
  For official guidance, forms, and help, visit the Vermont Department of Taxes website.
• 3SquaresVT Food Assistance:
  Dial 2-1-1 for help and appointments with certified volunteers.
• Free Tax Filing Services:
  • GetYourRefund.org
  • MyFreeTaxes.com
  • Local organizations like CVOEO

Summary Table of Key Tax Benefits for Immigrants in Vermont (2025)

Key Takeaways and Next Steps

• File your Vermont state tax return by April 15, 2025, using your SSN or ITIN to claim the Vermont Earned Income Tax Credit and Vermont Child Tax Credit.
• If you do not have a federal TIN, you may still be eligible for the Vermont Child Tax Credit.
• Take advantage of free tax filing help from local organizations and online services.
• If you receive the Vermont EITC, you are automatically eligible for 3SquaresVT food assistance.
• Stay informed about future changes by checking the Vermont Department of Taxes website and community resources.

According to analysis by VisaVerge.com, Vermont’s expanded tax credits and inclusive policies are setting a strong example for other states, making it easier for immigrants to build stable, healthy lives. For more details and official forms, visit the Vermont Department of Taxes.

By following these steps and using available resources, immigrants in Vermont can make sure they receive all the benefits they are entitled to in 2025 and beyond.

Learn Today

Earned Income Tax Credit (EITC) → A refundable state tax credit based on earned income to support low- and moderate-income workers.
Individual Taxpayer Identification Number (ITIN) → A tax processing number for individuals ineligible for a Social Security Number.
Vermont Child Tax Credit (CTC) → A $1,000 refundable credit for qualifying children aged six or younger in Vermont families.
3SquaresVT → Vermont’s state food assistance program providing groceries support to eligible low-income families.
Social Security Income Exclusion → A state tax provision allowing retirees to exclude part of their Social Security income from taxation.

This Article in a Nutshell

Vermont’s 2025 tax updates extend benefits to immigrants using ITIN or SSN, improving access to EITC, Child Tax Credit, and food assistance. Families with young children and retirees gain increased support. These changes streamline claiming credits without federal ID, strengthening Vermont’s inclusive tax policies for immigrants.
— By VisaVerge.com