SC families can save more on taxes in 2024 with these 4 improved deductions and credits
This could be a more lucrative tax year for some South Carolina families.
According to the S.C. Department of Revenue, some families have the chance to save more money this year through increases in certain tax deductions and credits.
Both the IRS and the S.C. Department of Revenue will start accepting 2023 income tax returns on Monday. From there, taxpayers will have until April 15 to file their federal and state returns.
Below are the improved credits and deductions available to some South Carolina families this year. To learn even more about state tax credits, click here.
Two wage earner credit
The maximum credit for South Carolina’s two wage earner credit has increased to $350. This credit is available to taxpayers whose filing status is “married filing jointly” when both spouses have earned income taxed in South Carolina. Last year, taxpayers claimed more than $80 million through the credit, SCDOR states.
Dependent exemptions
The state’s exemption for dependents has increased to $4,610 per dependent, including for those under 6 years old. More than 727,000 returns claimed dependent deductions in the state last year.
SC earned income tax credit
The SC earned income tax credit has been fully phased in and is now 125% of the federal EITC, which is designed to help low-to-moderate-income working individuals or couples, particularly those who have children. This year, eligible taxpayers may claim up to $7,430 in EITC on their federal returns. With the South Carolina EITC now letting people claim 125% of the federal EITC, that’s a maximum of $9,287.50.
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.
Child & dependent care credit
The child and dependent care credit now offers a maximum of $210 for one child or $420 for two or more children. Full-time South Carolina residents may claim 7% of the federal child and dependent care expense. You cannot claim this credit if your filing status is married filing separately.
This story was originally published January 29, 2024 at 6:00 AM.
