Last year, more than 1 million returns claimed state tax breaks available for South Carolina families, according to the South Carolina Department of Revenue (SCDOR).
With the state tax filing deadline approaching next month, the SCDOR reminds families to review deductions and credits they may be able to claim on their state tax returns.
Here are some common state tax credits and deductions available for families:
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Child and Dependent Care Credit: For a full-year resident, the credit is calculated at 7% of the federal child and dependent care expense. 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 expense to nonresidents of that state. The maximum credit allowed is $210 for one child or $420 for two or more children. You cannot claim this credit if your filing status is Married Filing Separately.
- More than 99,000 returns claimed over $17 million in Child and Dependent Care Credits for tax year 2020.
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Two Wage Earner Credit: This credit is available to married couples filing jointly when both spouses have earned income taxed to South Carolina. This credit cannot be claimed if your filing status is Single, Married Filing Separately, Qualifying Widow(er), or Head of Household. For tax year 2021, the credit is 0.7% of the lesser of $43,333 or the South Carolina qualified earned income of the taxpayer with the lower qualified income for the taxable year.
- More than 377,000 returns claimed over $64 million in Two Wage Earner Credits for tax year 2020.
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Child deductions: South Carolina offers a deduction of $4,300 for each dependent child and an additional deduction of $4,300* for each child under 6 years of age.
- More than 727,000 returns for 2020 claimed dependent deductions, and 246,094 returns claimed exemptions for children under age 6.
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Future college payment deductions: Contributions to the SC College Investment Program, known as Future Scholar, or the
SC Tuition Prepayment Program are deductible. You may deduct 100% of any contributions to the SC College Investment Program made between January 1, 2021 and April 15, 2022 and 100% of any contributions to the SC Tuition Prepayment Program made between January 1, 2021 and December 31, 2021.
- More than 31,000 returns claimed over $346 million in future college payment deductions for tax year 2020.
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SC Earned Income Tax Credit: South Carolina's Earned Income Tax Credit (EITC) goes up for 2021 to 83.33% of the federal credit, 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. You should first claim the EITC on your federal income tax return. If you are not eligible for the federal credit, you cannot claim the state credit.
- More than 107,000 returns claimed over $100 million in SC Earned Income Tax Credits for tax year 2020.
Learn more about tax credits and how to claim them at
dor.sc.gov/taxcredits.
For more information
More tips and filing information are available at dor.sc.gov/iit. To learn more about preparing for your federal return, visit IRS.gov.
Connect with the SCDOR on Facebook and Twitter for up-to-date news and announcements.
*This news release originally listed the additional deducation amount as $4,260. The information has been updated to reflect the correct amount of $4,300.
