During the 2020 tax season, more than 1.5 million returns claimed state tax breaks available for South Carolina parents, according to the South Carolina Department of Revenue (SCDOR). With the new tax filing season just around the corner, the SCDOR reminds families to review deductions and credits they may qualify for and can claim on their state tax returns.
Some common state tax credits and deductions available for families include:
• Child Care Credit: For a full-year resident, the credit is calculated at 7% of the federal child and dependent care expense. For a part-year resident or nonresident, you are not eligible for this credit if you are a resident of a state that does not offer a credit for child and dependent care expense to nonresidents of that state. The maximum credit allowed is $210 for one child or $420 for two or more children. You cannot claim this credit if your filing status is Married Filing Separately. More than 123,000 returns claimed this credit for tax year 2019.
• Two Wage Earner Credit: This credit is available to married couples filing jointly when both spouses have earned income taxed to South Carolina. More than 386,000 returns claimed this credit for the 2019 tax year. This credit is not allowed on returns with a filing status of Single, Married Filing Separately, or Head of Household. The multiplier used in computing the Two Wage Earner Credit increases by $3,333 each year beginning in 2018, until fully phased-in for tax year 2023.
• Child deductions: South Carolina offers a deduction of $4,260 for each dependent child and an additional deduction of $4,260 for each child under 6 years of age. Almost a million returns claimed these deductions for tax year 2019.
• Future college payment deductions: Contributions by parents and others to the SC College Investment Program, known as Future Scholars, or the SC Tuition Prepayment Program, are deductible. You may deduct 100% of any contributions to the SC College Investment Program made between January 1, 2020 and April 15, 2021 and 100% of any contribution to the SC Tuition Prepayment Program made between January 1, 2020 and December 31, 2020. More than 31,000 returns claimed the Future Scholar deduction for tax year 2019.
Learn more about tax credits and how to claim them on the SCDOR’s website.
To save time, increase security, and save tax dollars, the SCDOR encourages you to file electronically and choose direct deposit.
Direct deposit is the fastest refund option to process and provides you with the fastest access to your money.
If you file online and choose direct deposit, you’re less likely to make errors thanks to system checks.
For more tips and information about filing Individual Income Tax Returns, visit the SCDOR at visit dor.sc.gov/iit.