Many SC workers don’t claim this tax credit worth over $7K, IRS says. See if you qualify

Patrick McCreless
·2 min read

Many South Carolinians may be owed over $7,000 this year and not even realize it.

According to the IRS, approximately one-fifth of South Carolina workers fail to claim the annual Earned Income Tax Credit. The credit is designed to help low-to-moderate income working individuals or couples, particularly those who have children.

This year, eligible taxpayers in South Carolina may claim up to $7,430 through the EITC on their federal returns. And with the South Carolina EITC now letting people claim 125% of the federal EITC, that’s a maximum of $9,287.50, the S.C. Department of Revenue states.

The IRS began accepting returns this year on Jan. 29. Tax returns are due April 15.

Last year, more than 420,000 working individuals and families in South Carolina received $1.1 billion in Earned Income Tax Credits (EITC), an average of $2,641.

“The IRS and our partners across the nation urge people to look into this frequently overlooked tax credit that can help millions of taxpayers,” IRS Commissioner Danny Werfel said in a press release. “Even people who don’t normally file might still be eligible for the Earned Income Tax Credit, which can be thousands of dollars.”

Nationwide last year, approximately 23 million workers and families received about $57 billion in EITC. The average amount of EITC received nationwide last year was about $2,541.

How to qualify in SC for EITC

For eligible workers to qualify, they must meet certain requirements and file a tax return, even if they’re not required to file due to earned income levels. The IRS estimates that a third of those who qualify for EITC became eligible for the first time this year because of changes in their parental, marital or financial status.

Basic qualifying rules

  • Have worked and earned income under $63,398

  • Have investment income below $11,000 in the 2023 tax year

  • Have a valid social security number

  • Be a U.S. citizen or a resident alien all year

  • Not file Form 2555, Foreign Earned Income

  • Meet certain rules if you are separated from your spouse and not filing a joint tax return

  • For more details on qualifying, click here

How to claim EITC

The SCDOR notes that taxpayers should claim the EITC on their federal returns first — if you are not eligible for and do not claim the federal credit, you cannot claim the state credit. Also, this credit is only open to full-year South Carolina residents.

For full details on how to claim the EITC, click here.

The IRS notes that if you claim the EITC, your refund may be delayed. The IRS cannot issue the credit before mid-February by law.