EITC and Child Tax Credit Updates
On Tuesday, Chairwoman Kornheiser asked Legislative Counsel to walk the House Ways & Means Committee through the draft language making changes to the two tax credit programs.
Legislative Counsel explained that the draft language which would amend the EITC and Child Tax Credit has lots of moving parts; part-time and full-time residents would both eligible. The Child Tax Credit was described as a “refundable credit” against Vermont income tax liability. Taxpayers receive $1000 per qualifying child five years old or younger. The payments will change, under this bill, from a lump sum payment (at filing) to a quarterly payment system that the tax department will create. This is similar to how the tax credits for individual health insurance plans work today.