VT S0051

Vermont Child Tax Credit eligibility expanded from children age 5 and younger to children age 6 and younger, maintaining the $1,000 refundable credit per qualifying child

Earned Income Tax Credit modified to require federal EITC eligibility, removing prior provision that extended credit to those lacking taxpayer identification numbers

Social Security income exclusion thresholds raised by $5,000 across all filing statuses (e.g., single filers now excluded up to $55,000 AGI, married filing jointly up to $70,000 AGI)

U.S. military retirement and survivor benefit income exclusion expanded with new income thresholds: full exclusion for AGI up to $125,000, phased out between $125,000-$175,000, and may now be claimed in addition to Social Security or Civil Service exclusions

New Vermont Veteran Tax Credit created providing $250 refundable credit to veterans with AGI up to $25,000, phasing out between $25,000-$30,000 AGI, effective retroactively to January 1, 2025