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Commentary: Don't Leave Money on the Table this Tax Season

Press Release

Thu, 03/26/2026 - 12:00

By Vermont Tax Commissioner Bill Shouldice

I know that there are a lot of Vermonters out there who are concerned about the cost of living in our state. As a lifelong Vermonter, a father, a grandfather, a son to parents retired in Vermont, and as Vermont’s commissioner of taxes -- I am too. And for Vermonters who could really use some extra money in their pockets right about now, I’m going to make a suggestion that might sound strange to you:

File your taxes.

The filing deadline for federal and Vermont personal income taxes is April 15, 2026. That gives you a few more weeks to file and claim valuable federal and state tax credits that can help pay the bills. It’s not true for everyone, of course, but for many Vermonters, we owe you money.

This is the case for more of us this year because last year the governor and the Legislature worked together on an affordability package (Act 71 of 2025) that provided $13.5 million in tax relief for Vermonters:

• An eligibility expansion to the $1,000 Child Tax Credit – now families with children up to the age of six will be able to claim the credit.
• An increase to the Vermont Earned Income Tax Credit for working Vermonters without children.
• A new tax credit for income-eligible veterans of the uniformed military services.
• An expansion of the eligibility thresholds for the tax exemption for Social Security income by $5,000.
• A new exemption for military retirement and survivorship benefits for taxpayers with incomes up to $125,000, and a partial exemption up to $175,000.

Importantly, the new law expanded two of Vermont’s key refundable tax credits – the Vermont Child Tax Credit and The Vermont Earned Income Tax Credit – and created a new credit for Vermont veterans.

Refundable tax credits decrease the amount of tax you owe first, but if you don’t owe any tax, which is true for many Vermonters, you receive the credit’s cash value in your refund. And as your commissioner of taxes, I don’t want you to leave any of that money on the table. I want it back where it belongs, in your pocket.

We estimate that there are around 40,000 Vermonters who don't file state income taxes each year because their income is low enough that they are not required to. But we hope that they will strongly consider filing this year. Here's why: A worker who makes $23,000 could be eligible for more than $1,600 through the Vermont EITC, and if that worker has a young child, they would receive another $1,000 through the Vermont Child Tax Credit. Plus, there are federal versions of both the Earned Income Tax Credit and the Child Tax Credit – which can add thousands of dollars to that tax refund.

But the only way to access these credits is to file your taxes. Even if you haven’t filed in previous years, make it a priority to file before April 15. Know that there is free tax preparation assistance available online and throughout Vermont to help you claim the right credits and exemptions when you file your taxes.

I visited a volunteer tax preparation site operated by Northeast Kingdom Community Action in Island Pond earlier this month. Last year they filed more than 200 returns on behalf of Vermonters seeking assistance, returning refunds that, all in, totaled more than $200,000. And they’re on track to beat that number this year. You can learn more about free, in-person tax preparation assistance provided by Vermont’s Community Action Agencies, the AARP, and United Way on the Vermont Department of Taxes website.

If you would rather file your taxes yourself online, Vermonters with incomes of $89,000 and less can do so for free through commercial software vendors participating in the Free File program.

If you have questions about Vermont taxes, or if you think you may be eligible for tax credits but aren’t sure, please visit the Department of Taxes website to learn more or give us a call at 802-828-2865. We are here to help.

The Governor and his team are working hard to make Vermont a more affordable place to live, and the expanded tax relief available this year has been an example of what we can achieve in state government when we unite around that common goal. But the last mile belongs to Vermont taxpayers. That $13.5 million is yours. It’s a thank you for living, working, and raising your family in Vermont. Please file your taxes to claim it.

This commentary was published in VermontBiz and the Waterbury Roundabout on March 24, 2026.