Did you claim the $7,000 South Carolina Earned Income Tax Credit this year?
Some South Carolina workers may not know that they can take home up to $7,000 this year in the form of the 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 is now fully phased in and is currently 125% of the federal EITC.
How to Apply for the South Carolina Earned Income Tax Credit
For tax year 2023, eligible South Carolina workers can claim up to $7,430 in the form of the EITC when filing their federal taxes. South Carolina allows workers to claim 125% of the federal EITC, so the most you can claim is $9,287.50.
All South Carolinians need to do to claim the EITC is file their 2023 tax return. The IRS began accepting tax returns on January 29th, and the last filing date is April 15th. The purpose of the EITC is to provide 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 EITC, with an average of $2,641. About 23 million workers and their families across the U.S. received about $57 billion in EITC, on average $2,541, according to data from the IRS.
“The IRS and our partners across the country urge people to look into this often-overlooked tax credit that could help millions of taxpayers,” the IRS said in a press release. He added that you can get a dollar tax deduction. Calculated as EITC.
To claim the South Carolina Earned Income Tax Credit, taxpayers must first claim it on their federal return. People who are ineligible and do not claim the federal EITC cannot claim the state credit.
Who is eligible to receive the EITC?
To qualify for the EITC, households must meet some basic requirements and file a tax return, even if they are not required to do so because of their income level.
Basic requirements include meeting the annual income limits and investment income limits, being a U.S. citizen or resident alien all year, having a valid Social Security number, not filing Form 2555 or Form 2555-E, and not being claimed as a dependent. It’s possible. Other people and couples do not report separately.
To learn more about the requirements and how to claim the EITC, visit this link.
For those who applied for the EITC, refunds may be delayed, according to the IRS. Most EITC refunds will be delivered to eligible beneficiaries’ bank accounts or debit cards by February 27 if there are no other issues with their tax returns.
Taxpayers can visit Where’s My Refund? Check your refund date. According to the IRS, “Where’s my refund?” For most early refund applicants, the page will be updated by February 17th.
