Earned Income Tax Credit puts money back in the pockets of low-income workers, and South Carolina’s EITC is worth more than ever.
South Carolina’s Accumulated Income Tax Credit (EITC) increases in 2021, offering more money to individuals or couples working on a low to moderate income, especially those with children.
Nationally, the IRS estimates, 20% of eligible taxpayers do not claim the federal EITC. The South Carolina version of the federal EITC was adopted in 2018 and is being implemented in six years.
- For fiscal year 2019, eligible taxpayers could claim up to 41.67% of the federal credit.
- For fiscal 2020, qualified taxpayers can claim up to 62.5% of federal credit.
- For example: if the 2020 federal EITC is $ 1,000, South Carolina’s EITC will total $ 625 this year.
- In fiscal year 2023, South Carolina taxpayers will be able to claim 125% of the federal EITC. The EITC has been claimed in more than 58,000 South Carolina statements for fiscal year 2019.
Fiscal year credit amount (% of federal EITC)
2018 – 20.83%
2019 – 41.67%
2020 – 62.50%
2021 – 83.33%
2022 – 104.17%
2023 and later – 125%
To receive credit:
- You must first claim the EITC on your federal income tax returns. If you are not entitled to federal credit, you cannot claim state credit.
- To qualify for federal credit, you must file an individual or jointly married case and be between 25 and 65 years of age if you have no children. There are also income limits.
- You must reside in South Carolina for a year.
- Claim the credit by completing your South Carolina personal income tax return online or on paper (TC-60).
Unlike federal credit, state credit is non-refundable. This means that if you have no tax liability, you will not receive money from that credit.
To see if you qualify for federal credit, use the IRS eligibility tool.
The Individual Income Tax filing season for fiscal 2020 began on February 12. For more information on state tax credits, visit the SCDOR website.