South Carolina Earned Income Tax Credit
Last updated August 2026
The South Carolina Earned Income Tax Credit is generous on paper: it equals 125 percent of your federal EITC for tax year 2023 and after, the fully phased-in rate. It was built up over years, from about 21 percent in 2018 to the full 125 percent now.
But read this before you count on a check: the South Carolina credit is nonrefundable. It can reduce your South Carolina income tax to zero, but it is not paid out as a refund, and there is no carryforward for any unused amount. This is the opposite of the federal EITC, which does pay out as a refund.
So who benefits most? Working households that owe some South Carolina income tax, where the credit wipes out part or all of that bill. If you owe little or no state tax, the state credit may do little for you even though your federal EITC still pays out.
You qualify if you are a full-year South Carolina resident who claims the federal Earned Income Tax Credit on your federal return. Because the state credit is tied to the federal one, you must first qualify for and claim the federal credit.
Claiming it is one form: file form TC-60 with your South Carolina income tax return, and be sure to use the TC-60 for the correct tax year.
The federal EITC is the bigger prize for most low-income families, and it is refundable, so make sure you claim that first. Free filing help is available through VITA sites; dial 2-1-1 to find one.
Updated August 2026 Program details can change — confirm with the program directly.
Who qualifies
- You generally must qualify for the federal Earned Income Tax Credit and file a South Carolina income tax return
- The credit is nonrefundable and equal to 125 percent of your federal EITC, so its value depends on how much South Carolina tax you owe
You may qualify. The program makes the final decision.
How to apply
- 1
File your federal return and claim the federal EITC first; it is refundable.
- 2
File your South Carolina return and claim the state credit on form TC-60 for the correct year.
- 3
Remember the state credit only reduces tax owed; it is not paid as a refund.
- 4
Need help? Dial 2-1-1 to find a free VITA tax site.
What the application looks like
Common questions
How much is the South Carolina EITC?
125 percent of your federal EITC for tax year 2023 and after, the fully phased-in rate.
Is it refundable?
No. The South Carolina credit is nonrefundable: it can reduce your state tax to zero but is not paid out as a refund, and there is no carryforward. The federal EITC, by contrast, is refundable.
Who benefits from it?
Working households that owe South Carolina income tax, where the credit offsets that bill. If you owe little or no state tax, it may do little for you.
How do I claim it?
File form TC-60 with your South Carolina income tax return, using the TC-60 for the correct tax year. You must also claim the federal EITC.
Not sure this is the right program for your situation?
See all South Carolina programs →Free · Private · No account needed