Many South Carolina workers are leaving substantial tax refunds on the table by not claiming the Earned Income Tax Credit. The IRS reports approximately 20% of eligible low-to-moderate income workers in the state fail to claim this benefit, which averaged $2,916 in 2024. This oversight represents a significant missed opportunity for families facing financial challenges.

The EITC serves as one of the nation's largest antipoverty programs, lifting an estimated 9.1 million people out of poverty, with more than half being children. Eligibility depends on adjusted gross income and number of qualifying children, with thresholds ranging from $19,104 to $61,555 for single filers and up to $68,675 for married couples with three or more children.

South Carolina offers an enhanced version of the credit, providing 125% of the Federal EITC through Form TC-60. Importantly, the credit does not count as income when determining eligibility for welfare benefits like Medicaid, food stamps, or Supplemental Security Income. This dual benefit structure makes the EITC particularly valuable for working families with limited resources.

The IRS must delay issuing EITC refunds until at least Feb. 21, 2026, to prevent fraud. Workers must have lived in South Carolina for the entire year to qualify for the state credit. Financial experts emphasize that claiming this credit represents a direct financial boost that can help families meet basic needs and build financial stability.

Quick Fact: Average EITC amount received was $2,916 in 2024.