SC’s Earned Income Tax Credit to go up in 2020

SC’s Earned Income Tax Credit to go up in 2020
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COLUMBIA, S.C. (WMBF) – Officials with the South Carolina Department of Revenue announced Wednesday the state’s Earned Income Tax Credit will increase in 2020.

According to a press release, this will offer 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, the release stated. The breakdown is:

  • 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, S.C. taxpayers will be able to claim 125% of the federal EITC, the release stated. It was claimed on more than 59,000 Palmetto State 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).

For more information on state tax credits, click here.

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