Some South Carolina workers may not know that they could pocket as much as $7,000 this year in the form of a state Earned Income Tax Credit (EITC). According to the IRS, about 20% of workers fail to claim the Earned Income Tax Credit. The South Carolina Earned Income Tax Credit has now been fully phased in and is currently 125% of the federal EITC.
How to claim the South Carolina Earned Income Tax Credit
For the 2023 tax year, eligible South Carolina workers can claim up to $7,430 in the form of the EITC on their federal returns. With South Carolina allowing workers to claim 125% of the federal EITC, the maximum they can claim is $9,287.50.
All that South Carolinians need to do to claim the EITC is to file their 2023 tax return. The IRS started accepting returns on Jan. 29, while the last date to file is April 15. The objective of the EITC is to provide some financial relief to low-to-moderate-income working individuals or couples.
In 2023, more than 420,000 households in the state received about $1.1 billion in EITCs, an average of $2,641. Across the entire U.S., about 23 million workers and families received about $57 billion in EITCs, an average of $2,541, according to data from the IRS.
“The IRS and our partners across the nation urge people to look into this frequently overlooked tax credit that can help millions of taxpayers,” the IRS said in a press release, adding that even people who don’t normally file might be eligible for thousands of dollars in EITCs.
To claim the South Carolina Earned Income Tax Credit, taxpayers need to claim it first on their federal returns. Those who are not eligible and don’t claim the federal EITC won’t be able to claim the state credit.
Who qualifies for the EITC?
To qualify for the EITC, households need to meet some basic requirements and file a tax return even if they aren’t required to because of their income level.
The basic requirements include meeting the annual income limit and investment income limitation, being a U.S. citizen or resident alien for the entire year, having a valid Social Security Number, not filing From 2555 or Form 2555-E, not being claimed as a dependent by someone else, and not filing as married filing separate.
Visit this link to learn more about the requirements and how to claim the EITC.
According to the IRS, refunds may be delayed for those who claim the EITC. Most EITC refunds should be available in bank accounts or on the debit cards of eligible recipients by Feb. 27 if there are no other issues with their tax return.
Taxpayers can visit Where’s My Refund? to see their refund date. According to the IRS, the “Where’s My Refund?” page will be updated for most early refund filers by Feb. 17.
