IN-112: Vermont Tax Adjustments and Credits (2025)

Who files this form

Use Schedule IN-112 with Form IN-111 to report the Vermont income adjustments and credits listed on the schedule.

• Part I covers additions to and subtractions from federal adjusted gross income.
• Part II lists refundable child and dependent care, child tax, earned income tax, and veteran tax credits for residents and part-year residents.
• The student loan interest subtraction is for residents only.

What you'll need

Have the following forms and information available for the lines that apply to you:

• Vermont Form IN-111, including adjusted gross income from Line 1.
• Federal Form 1040, for amounts such as tax-exempt interest and dividends, taxable state and local income tax refunds, and the federal earned income tax credit.
• Federal Schedule 1, Line 21, and the total qualified student loan interest you paid in 2025, if claiming that subtraction.
• Schedule IN-153, Line 21, if claiming 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 for the earned income tax credit.
• Schedule IN-113, Lines 14A and 14B, for the part-year resident credit adjustment.
• Your name and Social Security number. For the child tax credit, also have each qualifying child's name, Social Security number, and birth year.

The form refers to instruction worksheets for the medical expense deduction and exempt retirement benefits, and to instructions for military retirement and Survivor Benefit calculations. Those instructions were not provided here.

How to file

Include Schedule IN-112 with Form IN-111. Print in blue or black ink.

• Transfer Part I, Line 19, to Form IN-111, Line 2.
• Full-year residents transfer Part II, Line 13, to Form IN-111, Line 26c.
• Part-year residents complete Part II, Lines 14 through 17, and transfer Line 17 to Form IN-111, Line 26c.

The provided form does not give a mailing address or e-filing instructions.

Common mistakes

• Listing children outside the stated birth years: For the 2025 child tax credit, list only qualifying children born from 2019 through 2025.
• Using the full child tax credit without checking the AGI reminder: If Form IN-111, Line 1, is over $125,000, the form directs you to the instructions for the credit amount.
• Skipping the part-year resident adjustment: Part-year residents must complete Part II, Lines 14 through 17, rather than transfer Line 13 directly to Form IN-111.
• Overlooking a negative result: Part I, Line 19, can be a negative number.
• Forgetting the attachment: Include Schedule IN-112 with Form IN-111.

Questions people ask

How do I calculate my net income adjustment?

Subtract total subtractions on Part I, Line 18, from total additions on Line 6. Enter the result on Line 19 and on Form IN-111, Line 2. The result can be negative.

How is the student loan interest subtraction calculated?

For residents, enter qualified student loan interest paid in 2025 on Line 16a. Subtract interest already deducted on federal Form 1040, Schedule 1, Line 21. Enter zero on Line 16c if AGI is greater than $200,000 for joint filers or greater than $120,000 for all other filers.

How much is the Vermont child and dependent care credit?

Part II directs residents and part-year residents to multiply the credit from federal Form 2441, Line 11, by 72%.

How is the Vermont earned income tax credit calculated?

If the number of qualifying children from federal Schedule EIC is greater than zero, multiply the federal earned income tax credit by 38%. If the number is zero, enter the federal credit amount. Part-year residents then apply the adjustment in Part II, Lines 14 through 17, to their total refundable credits.

Official sources

• https://tax.vermont.gov/sites/tax/files/documents/IN-112-2025.pdf