South Carolina's Earned Income Tax Credit is going up in 2020, offering more money for low- to moderate-income working individuals or couples, particularly those who have children.
The state's version of the federal EITC was adopted in 2018 and is being phased in over six years.
- For tax year 2018, eligible taxpayers could claim up to 20.83% of the federal credit;
- For tax year 2019, eligible taxpayers can claim up to 41.67% of the federal credit. For example: If your 2019 federal EITC is $1,000, your South Carolina EITC will total $416.70 this year.
- By tax year 2023, South Carolina taxpayers will be able to claim 125% of the federal EITC.
The EITC was claimed on more than 59,000 South Carolina returns in tax year 2018.
To receive the credit:
- Taxpayers should first claim the EITC on their federal income tax returns. If they are not eligible for the federal credit, they cannot claim the state credit.
- You must be a full-year resident of South Carolina.
- Claim the credit when filing your South Carolina Individual Income Tax return online or by paper (TC-60).
Unlike the federal credit, the state credit is non-refundable. That means if you have no tax liability, you do not receive money from this credit.
For more information on state tax credits, visit the SCDOR's website.
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