The South Carolina Department of Revenue issued the following press release Wednesday.
South Carolina's Earned Income Tax Credit (EITC) goes up in 2020, offering more money for low- to moderate-income working individuals or couples, particularly those who have children.
South Carolina'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.
Tax 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 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.