South Carolina Taxpayers: Don’t Miss These Valuable Credits and Deductions for 2024

February 4, 2025

With tax season approaching, the South Carolina Department of Revenue (SCDOR) is reminding families to review important deductions and credits that may help lower their Individual Income Tax liability. Before filing, taxpayers should ensure they are eligible for these savings opportunities.

Earned Income Tax Credit (EITC)

The Earned Income Tax Credit is designed to assist low- to moderate-income working individuals and couples, particularly those with children. For tax year 2024, the federal EITC has increased to a maximum of $7,830. South Carolina’s EITC remains at 125% of the federal credit, which means eligible families may see a larger benefit.

In tax year 2023, more than 108,000 South Carolina taxpayers claimed over $185 million in Earned Income Tax Credits. However, the IRS estimates that around 20% of eligible taxpayers don’t claim the EITC.

Key points about the EITC:

  • Taxpayers must first claim the EITC on their federal return; without the federal credit, the South Carolina EITC cannot be claimed.
  • This credit is available only to full-year South Carolina residents.
  • The IRS’s EITC tables and EITC Assistant can help taxpayers determine eligibility and potential benefits.

Child and Dependent Care Credit

Full-year South Carolina residents may claim this credit, which is calculated at 7% of their federal child and dependent care expenses. The maximum credit is:

  • $210 for one child
  • $420 for two or more children

For tax year 2023, South Carolina taxpayers claimed more than $23 million in Child and Dependent Care Credits. However, part-year residents and nonresidents are not eligible unless they live in a state that offers the same credit to South Carolina nonresidents. Additionally, those filing as Married Filing Separately cannot claim this credit.

Two Wage Earner Credit

Designed for married couples filing jointly, this credit applies when both spouses have earned income taxed in South Carolina. For tax year 2024, the credit is 0.7% of the lesser of $50,000 or the lower income earned by one spouse, with a maximum credit of $350.

Last year, taxpayers in South Carolina claimed over $80 million in Two Wage Earner Credits. However, this credit is not available for Single, Married Filing Separately, Qualifying Surviving Spouse, or Head of Household filers.

Dependent Exemptions

For tax year 2024, South Carolina has increased the dependent exemption to $4,790 per eligible dependent, including qualifying children and relatives.

In tax year 2023:

  • Over 727,000 South Carolina returns claimed dependent deductions.
  • More than 240,000 returns claimed exemptions for children under age six.

Future College Payment Deductions

Contributions to South Carolina’s College Investment Program (Future Scholar) or the SC Tuition Prepayment Program are tax-deductible.

  • 100% of contributions made to the SC College Investment Program between January 1, 2024, and April 15, 2025, can be deducted.
  • 100% of contributions to the SC Tuition Prepayment Program made between January 1, 2024, and December 31, 2024, are also deductible.

For tax year 2023, more than 33,000 South Carolina taxpayers claimed over $356 million in college payment deductions.

Important Filing Deadline

📅 South Carolina Individual Income Tax returns for tax year 2024 are due by May 1, 2025. The deadline was extended due to relief granted after Hurricane Helene.

For more details on these and other tax credits, visit dor.sc.gov/taxcredits.