Take advantage of these family tax credits and deductions

FOR IMMEDIATE RELEASE - 1/31/2025

Take advantage of these family tax credits and deductions​

Today is the IRS's annual EITC Awareness Day, making it a great time for the SCDOR to remind families about several important deductions and credits they may be able to claim on their Individual Income Tax returns.

Before you file, review these credits and deductions and make sure you know if you’re eligible to claim them:

• ​​​Earned Income Tax Credit (EITC): The EITC is designed to help low- to moderate-income working individuals or couples,​​ particularly those who have children. The federal EITC has increased for tax year 2024, with the maximum credit amount of $7,830, which means eligible South Carolina families will see a larger credit as well. South Carolina's EITC remains 125% of the federal EITC.
  
  More than 108,000 returns claimed more than $185 million in South Carolina Earned Income Tax Credits for tax year 2023. However, the IRS estimates that approximately 20% of eligible taxpayers don't claim the EITC, so we encourage South Carolinians to spread the word about this important credit.
  
  Here’s what you need to know before you claim the EITC:
  • You should first claim the EITC on your federal return; if you are not eligible for and do not claim the federal credit, you cannot claim the South Carolina EITC. This credit is open to full-year South Carolina residents only.
  • Check out the IRS’s EITC tables to look up maximum credit amounts.
  • Use the IRS's EITC Assistant to check your eligibility for the federal EITC.​
• Child and Dependent Care Credit: For full-year South Carolina residents, this credit is calculated at 7% of the federal child and dependent care expense. The maximum credit allowed is $210 for one child or $420 for two or more children.
  • South Carolina taxpayers claimed more than $23 million in Child and Dependent Care Credits for tax year 2023.
  • Part-year residents or nonresidents are not eligible for this credit unless they are a resident of a state that offers a credit for child and dependent care expenses to nonresidents of that state.
  • You cannot claim this credit if your filing status is Married Filing Separately.
• Two Wage Earner Credit: This credit is available to taxpayers whose filing status is Married Filing Jointly when both spouses have earned income taxed to South Carolina. For tax year 2024, the credit is 0.7% of the lesser of $50,000 or the South Carolina qualified earned income of the taxpayer with the lower qualified income for the taxable year. The maximum amount of credit available remains $350.
  • South Carolina taxpayers claimed more than $80 million in Two Wage Earner Credits for tax year 2023.
  • This credit cannot be claimed if your filing status is Single, Married Filing Separately, Qualifying Surviving Spouse, or Head of Household.
• Dependent exemptions: For tax year 2024, South Carolina has increased its dependent exemption to $4,790 for each eligible dependent, including both qualifying children and qualifying relatives.
  • More than 727,000 South Carolina returns claimed dependent deductions for tax year 2023, including more than 240,000 returns that claimed exemptions for children under age 6.
• ​Future college payment deductions: Contributions to the SC College Investment Program, (known as Future Scholar) or the SC Tuition Prepayment Program are tax-deductible. You may deduct 100% of any contributions to the SC College Investment Program made between January 1, 2024 and April 15, 2025 and 100% of any contributions to the SC Tuition Prepayment Program made between January 1, 2024 and December 31, 2024.
  • More than 33,000 South Carolina returns claimed more than $356 million in future college payment deductions for tax year 2023.

Learn more about all South Carolina tax credits, including eligibility information, at dor.sc.gov/taxcredits and review the SC1040 instructions for more information on deductions.

Remember – 2024 South Carolina Individual Income Tax returns are due May 1, 2025, due to relief granted in October as the result of Hurricane Helene.

Stay connected

We’re providing filing tips all season long at @theSCDOR​. Plus, our Instagram account is a fun way to learn more about job openings at our agency, upcoming Taxpayer Education events, and more. 

Find more tax season resources at dor.sc.gov/iit. Follow the SCDOR on Facebook, X (formerly known as Twitter), and YouTube, and subscribe to ReveNews​ for the latest updates, resources, and reminders.​​​​

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