Many SC workers don’t claim this tax credit that could bring almost $3K refund, IRS says

As you’re thinking about preparing to file your income taxes, don’t forget this often overlooked credit that could save you thousands.

It’s the Earned Income Tax Credit and about a fifth of South Carolina’s low-to-moderate income workers are eligible and don’t claim it.

The Internal Revenue Service says the average EITC amount received was $2,916 in 2024.

South Carolina Legal Services says the EITC is one of the largest antipoverty programs.

“These credits lifted an estimated 9.1 million people out of poverty, of which more than half were children,” Legal Services said.

Who qualifies in SC?

Your adjusted gross income must be less than $61,555 ($68,675 for married filing jointly) if you have three or more qualifying children who have valid social security numbers.

• $57,310 ($64,430 for married filing jointly) if you have two qualifying children who have valid SSNs,

• $50,434 ($57,554 for married filing jointly) if you have one qualifying child who has a valid SSN, or

• $19,104 ($26,214 for married filing jointly) if you don’t have a qualifying child who has a valid SSN.

Does it affect other benefits?

The credit does not count as income in determining certain welfare benefits like Medicaid, food stamps or Supplemental Security Income.

By law, the IRS must wait until at least Feb. 21, 2026, to issue refunds to taxpayers who claim the Earned Income Tax Credit. Taxpayers can check Where’s My Refund for their personalized refund date.

You may also claim the credit on your South Carolina tax return.

Form TC-60 is used to claim this credit if you’ve claimed it on your federal return. You are eligible for 125% of the Federal Earned Income Tax Credit.

You must have lived in South Carolina all year to qualify for this credit.