IN-112: Vermont Tax Adjustments and Credits (2024)
Vermont · Vermont Department of Taxes · Used for tax years 2024
Vermont Schedule IN-112 reports additions and subtractions to federal adjusted gross income and calculates Vermont refundable tax credits for 2024. It includes the child and dependent care credit, child tax credit, and earned income tax credit, and is included with Form IN-111.
Who files this form
Schedule IN-112 reports Vermont additions and subtractions to federal adjusted gross income and Vermont refundable tax credits. Include it with Form IN-111.
- The refundable credit sections cover residents and part-year residents claiming the child and dependent care credit, child tax credit, or earned income tax credit.
- The student loan interest subtraction is for residents only.
The form does not state a general filing requirement.
What you'll need
Have the following forms and information available, as applicable to your adjustments or credits:
- Federal Form 1040 and Schedule 1, including income, deductions, and earned income tax credit amounts referenced on IN-112.
- Vermont Form IN-111.
- Schedule IN-153, Line 21, for the capital gains exclusion.
- Federal Form 2441, Line 11, for the child and dependent care credit.
- Federal Schedule EIC for the number of qualifying children.
- Schedule IN-113, Lines 14A and 14B, for part-year resident credit calculations.
- Qualifying children's names, Social Security numbers, and birth years for the child tax credit.
- Amounts for applicable interest income, bonus depreciation adjustments, retirement income, and qualified student loan interest paid in 2024.
The form also refers to worksheets in the instructions for the medical expense deduction and retirement benefits exemption. Those instructions were not supplied.
How to file
- Include Schedule IN-112 with Form IN-111.
- Print in blue or black ink.
- Enter Part I, Line 18, on Form IN-111, Line 2. This amount can be negative.
- Full-year residents: enter Part II, Line 8, on Form IN-111, Line 26c.
- Part-year residents: complete Part II, Lines 9 through 12, and enter Line 12 on Form IN-111, Line 26c.
The supplied form does not provide a mailing address or e-filing directions.
Common mistakes
- Do not submit IN-112 without Form IN-111. The form says to include them together.
- Do not use the student loan interest lines unless you are a resident. Subtract interest already deducted on federal Schedule 1, Line 21. Enter zero on Line 15c if AGI is greater than $200,000 for joint filers or $120,000 for all other filers.
- List only children who qualify for the child tax credit and were born in 2019 through 2024.
- Do not automatically use the full $1,000-per-child credit if your AGI on IN-111, Line 1, is over $125,000. The form directs you to the instructions for the credit amount.
- Part-year residents must complete the credit adjustment on Lines 9 through 12 rather than transfer Line 8 directly to IN-111.
Questions people ask
Can my net income modification be negative?
Yes. Part I, Line 18, subtracts total subtractions on Line 17 from total additions on Line 6. The form explicitly says the result can be negative.
How is the Vermont child and dependent care credit calculated?
Multiply the amount from federal Form 2441, Line 11, by 72%.
How is the Vermont earned income tax credit calculated?
Multiply the federal earned income tax credit reported on Form 1040 by 38%.
How are refundable credits adjusted for part-year residents?
Divide the Vermont portion of total income from IN-113, Line 14B, by total income from IN-113, Line 14A, then multiply by 100 to find the adjustment percentage. Apply that percentage to total refundable credits on IN-112, Part II, Line 8. Enter the adjusted credit on IN-111, Line 26c.