South Carolina tax credits your family may qualify for

COLUMBIA, S.C. (WCBD)- With tax season in full swing, millions of South Carolina families may be eligible for state tax credits.

According to the South Carolina Department of Revenue, more than 1 million returns last year claimed tax breaks available to families.

Child and Dependent Care Credit

For the full-year South Carolina residents, the 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. Part-year residents and nonresidents are not eligible for this credit unless they are a resident of a state that offers a child and dependent care credit.

You cannot claim this credit if your filing status is Married Filing Separately.

Two Wage Earner Credit

This credit is available to married couples that are filing jointly when both spouses have earned income that is taxed in South Carolina. For the 2021 tax year, the credit is 0.7% of the lesser of $43,333

This credit cannot be claimed if your filing status is Single, Married Filing Separately, Qualifying Widow(er), or Head of Household.

Child Deductions

South Carolina offers a deduction of $4,300 for each dependent child and an additional $4,260 for each child under the age of six.

Future College Payment Deductions

Contributions made to the Future Scholar program or SC Tuition Repayment Program are tax-deductible. 100% of any contributions made to Future Scholar between Jan. 1, 2021 and April 15, 2022 or to the Repayment Program between Jan. 1, 2021 and Dec. 31, 2021 are deductible.

SC Earned Income Tax Credit

The state’s Earned Income Tax Credit has increased to 83.33% for 2021. In order to claim the state EITC, you must be eligible for the federal income tax credit.

For more information on tax credits and how to claim them, visit SCDOR’s website.