Earned Income Tax Credit (EITC)

Rate (Non-Refundable): 125% of the federal credit

Eligibility Requirements: All South Carolina taxpayers who qualify for the federal credit are automatically eligible.

Latest Legislative Action:

  • In 2017, as part of a package of tax bills, lawmakers created a non-refundable EITC worth 125% of the federal credit.
  • Sen. Marlon Kimpson (D) introduced a bill during the 2017 legislative session that would create an EITC worth 20% of the federal credit.
  • During the 2015 legislative session, a bill was introduced that would have created a state EITC at 10% of the federal credit and increased the rate by 2.5% per year until it reached 20%. However, the measure never advanced out of committee.

Child Tax Credit (CTC)

South Carolina does not currently offer a state-level CTC.

Child and Dependent Care Tax Credit (CDCTC)

Rate (Fully-Refundable): 7% of child care expenses eligible for the federal CDCTC1

Eligibility: All South Carolina taxpayers who qualify for the federal credit are automatically eligible, except for spouses filing separately; they are ineligible for any state CDCTC.

Notes: Since the state doesn’t vary this percentage inversely with income, this credit doesn’t target the most relief to lower-income filers.

South Carolina Tax Credits In The News

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Jul 17

New Report Highlights EITC as Policy Solution for Millions of Americans Stuck in Economic Limbo

The Earned Income Tax Credit (EITC) is vital for helping the millions of working Americans who may be getting by but aren’t getting ahead, according to a new report from Prosperity Now (formerly CFED).
Read More

3

Jul 17

News Round-up: July 3, 2017

Senator Marco Rubio (R-Fla.) and other lawmakers met with Ivanka Trump to discuss expanding the Child Tax Credit (CTC) as part of upcoming tax reform. An administration official has since indicated that the credit will be part of a proposal that the White House's National Economic Council puts forward.
Read More
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For More State Information:

John Ruoff
The Ruoff Group
www.TheRuoffGroup.com
(803)-782-5401
jruoff@theruoffgroup.com

Sources:
  1. 2015 SC 1040 Instructions, South Carolina Department of Revenue