The $250 Refundable Veteran Credit — Low-Income, Any Veteran
A resident veteran with adjusted gross income of $25,000 or less claims a $250 refundable credit on the state return — refundable meaning it pays out even with no tax owed. It phases to nothing at $30,000, and a married pair of veterans under $30,000 joint may both claim it.
Verified August 21, 2026
What this benefit is
A resident veteran with adjusted gross income of $25,000 or less claims a $250 refundable credit on the state return — refundable meaning it pays out even with no tax owed. It phases to nothing at $30,000, and a married pair of veterans under $30,000 joint may both claim it.
Who is entitled to it
- You have a discharge record verifying uniformed service.
- Your home is in this state.
Not sure whether that describes you?
Answer a few questions about this benefit specifically — we only ask what this one actually depends on, and we stop as soon as we know.
How to claim it
Deadline: With your return- 1Claim the credit when filing — from tax year 2025 under Act 71. Refundable means the state pays it out even if you owe nothing, which matters precisely for the low-income veterans it targets.
- 2The service test is a discharge record or other record of separation from active duty — no rating, no wartime requirement, part-year residents included.
- 3Two married veterans filing jointly under $30,000 combined may BOTH claim it — the department asks such couples to contact taxpayer services for instructions.
- File with
- Department of Taxes, on your annual return
- Documents you will need
- dd214
- Annual
- Claimed once a year.
Sources
- authority · published policyDepartment of Taxes — Vermont Veteran Tax Credit (Act 71, effective tax year 2025)
Why only one source type: The department's own page states the amount, both thresholds, refundability and the two-veteran-couple rule in terms.
This finder provides an informational match, not a government eligibility determination. The responsible agency decides your application.