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South Carolina | Tax Credits for Working Families

Tax Credits for Working Families

South Carolina

Earned Income Tax Credit^

Income Tax Rate: Graduated, 0-7 percent

State EITC: No

Notes/News: Like other states, South Carolina is facing a large budget shortfall, which makes discussions about a state EITC difficult. Organizations are focusing on maintaining the gains made so far in social service programs while laying the groundwork for a state EITC campaign coalition.

Reports/Materials:South Carolina State & Local Taxes,” from Who Pays? A Distributional Analysis of the Tax Systems in All 50 States, Institute on Taxation and Economic Policy, January 2013

South Carolina: State and Local Taxes in 2007, Institute on Taxation and Economic Policy, November 2009

A South Carolina Working Families Tax Credit: Rewarding Work and Building Wealth, South Carolina Fair Share, August 2008

Child Tax Credit^

State Credit: No

Child and Dependent Care Tax Credit^

State Credit: Yes

Refundable: No

Eligibility: Same as federal child and dependent care requirements

Formula: 7 percent of eligible expenses. For 2010, filers were instructed to calculate the credit by multiplying the expenses claimed for the federal CDCTC by .07.

News/Notes: Since the state doesn’t vary this percentage inversely with income, this credit doesn’t target the most relief to lower-income filers.

Property Tax Circuit Breaker^

Circuit Breaker: No

Reports/Materials: Idea 9: Enact a Property Tax Circuit Breaker,” Sarah Beth Coffey and Alan Essig, Center for a Better South, Doing Better: Progressive Tax Reform for the American South, June 2006