Key Takeaways
• South Dakota offers no state EITC or child tax credits for immigrants in 2025.
• Federal EITC and child tax credits apply only to immigrants with valid SSNs and lawful status.
• State tax relief programs exist for seniors and disabled residents regardless of immigration status.
Immigrants in South Dakota Face Limited State Tax Benefits in 2025
Immigrants living and working in South Dakota in 2025 face a unique tax landscape, especially when it comes to state-level benefits like the Earned Income Tax Credit (EITC) and child tax credits. As of July 4, 2025, South Dakota does not offer a state EITC, child tax credit, or other direct refundable tax credits for low-income workers or families, including immigrants. This situation stands in contrast to many other states that have expanded such benefits in recent years. Here’s a detailed look at what this means for immigrants, what federal options remain, and how these policies affect families and communities across the state.
Who Is Affected and Why It Matters
The lack of state-level tax credits in South Dakota affects a wide range of people, including immigrants who work hard to support their families. Many immigrants, especially those with lower incomes, rely on tax credits to help cover basic needs like housing, food, and childcare. Without these credits at the state level, families may struggle more than those in states with broader support.
This issue is important not just for immigrants, but for the entire South Dakota community. Tax credits like the EITC are proven tools to reduce poverty and help working families get ahead. When these benefits are missing, the economic security of many residents is at risk.
Federal EITC: The Only Option for Many Immigrants
South Dakota does not have a state Earned Income Tax Credit in 2025. This means that immigrants and other residents cannot claim any extra EITC benefit from the state. Instead, they must rely only on the federal EITC, if they qualify.
To claim the federal EITC, a taxpayer must:
- Have a valid Social Security Number (SSN) that is valid for work
- Be a U.S. citizen or a resident alien for the entire tax year
- Meet certain income and filing requirements
Immigrants with valid SSNs and lawful status who meet these rules can claim the federal EITC. However, immigrants who file taxes using an Individual Taxpayer Identification Number (ITIN) are not eligible for the federal EITC. This rule also excludes most undocumented immigrants, since they usually do not have valid SSNs.
For more information on federal EITC eligibility, the IRS provides a detailed guide on their official EITC page.
No State Earned Income Tax Credit in South Dakota
Unlike many other states, South Dakota has not created its own EITC program. According to analysis from VisaVerge.com, this puts South Dakota among a small group of states that offer no extra EITC support to low-income workers, including immigrants. In states with a state EITC, families can often receive hundreds of dollars more in tax refunds, making a real difference in their yearly budgets.
For immigrants in South Dakota, this means:
- No state EITC is available, regardless of immigration status
- Only the federal EITC can be claimed, and only if the immigrant has a valid SSN and meets all other requirements
- Immigrants who use an ITIN or are undocumented cannot claim any EITC at the state or federal level
Child Tax Credit: Only at the Federal Level
South Dakota also does not offer a state-level Child Tax Credit (CTC) or Child and Dependent Care Tax Credit (CDCTC) in 2025. This means that immigrant families cannot claim any extra state child tax credits. The only option is the federal Child Tax Credit, which has its own set of rules.
To claim the federal CTC, both the taxpayer and the child must have valid SSNs. The child must also be a U.S. citizen, U.S. national, or U.S. resident alien. Immigrants who file with an ITIN, or whose children do not have SSNs, are generally not eligible for the full federal CTC. In some cases, they may receive a smaller credit, but this is rare.
Key points for immigrants in South Dakota:
- No state CTC or CDCTC is available
- The federal CTC is only available if both the filer and the child have valid SSNs and meet other requirements
- Undocumented immigrants and ITIN filers are usually not eligible for the federal CTC
Other State-Level Tax Relief Programs
While South Dakota does not offer state EITC or CTC programs, there are some state-level tax relief programs for specific groups. These include:
Property and Sales Tax Relief for Seniors and Disabled Residents
South Dakota provides several relief programs for elderly and disabled residents. These programs include:
- Sales and property tax refunds
- Assessment freezes (which keep property taxes from going up)
- Property tax exemptions
To qualify, a person must meet residency requirements and either be age 65 or older, or have a qualifying disability. These programs are income-limited, meaning only people below a certain income level can apply. Importantly, these programs do not specifically target immigrants, but they are open to all qualifying residents, regardless of immigration status, as long as they meet the other requirements.
Work Opportunity Tax Credit (WOTC)
The Work Opportunity Tax Credit is a federal tax credit for employers who hire people from certain groups, such as veterans or people with disabilities. While this is not a direct benefit for immigrants, it can help immigrant workers if they are hired by an employer who claims the credit. The WOTC is not a state-level credit, but employers in South Dakota can use it.
Recent Policy Developments: No New Credits for Immigrants
There have been no new laws or policy changes in South Dakota in 2024 or 2025 that create a state EITC, child tax credit, or any tax credits aimed at immigrants. While some states have expanded their EITC programs to include immigrants who file with ITINs or are undocumented, South Dakota has not taken these steps.
Advocacy groups across the United States 🇺🇸 continue to push for more inclusive tax policies. They argue that expanding tax credits to include more immigrants would help reduce poverty and support families who contribute to the economy. However, South Dakota’s lawmakers have not introduced any bills to create or expand state-level tax credits for low-income workers or immigrants. This reflects the state’s conservative approach to fiscal policy.
Practical Implications for Immigrants in South Dakota
The lack of state-level tax credits has real effects on immigrants and their families in South Dakota. Here’s a summary of what is available and what is not:
| Tax Benefit/Credit | Available to Immigrants in South Dakota (2025) | Notes |
|---|---|---|
| State EITC | Not available | No state EITC program; immigrants rely on federal EITC if eligible |
| Federal EITC | Available if immigrant has valid SSN and meets criteria | ITIN filers and undocumented immigrants are excluded |
| State Child Tax Credit (CTC) | Not available | No state CTC program; federal CTC applies if eligible |
| Federal Child Tax Credit | Available if child and filer have valid SSNs | Undocumented immigrants or ITIN filers generally ineligible or receive reduced credit |
| Property/Sales Tax Relief | Available to elderly/disabled residents | Residency and age/disability required; immigration status not a disqualifier |
| Work Opportunity Tax Credit | Available to employers hiring eligible immigrants | Indirect benefit; credit claimed by employers, not individuals |
For many immigrants, especially those who are undocumented or who use ITINs to file taxes, the lack of both state and federal credits means less money in their pockets at tax time. This can make it harder to pay for essentials and save for the future.
How This Affects Different Groups
Immigrant Families with Children:
Families with children often rely on tax credits to help with the high cost of raising kids. In South Dakota, these families cannot claim any state-level child tax credits. Only those with valid SSNs and lawful status can claim the federal CTC, leaving out many immigrant families.
Low-Income Immigrant Workers:
The EITC is a major support for low-income workers, but in South Dakota, only the federal EITC is available. Immigrants without valid SSNs are left out entirely.
Elderly and Disabled Immigrants:
Older immigrants and those with disabilities may qualify for property and sales tax relief programs, as these do not depend on immigration status. However, these programs are limited to those who meet age or disability requirements and have low incomes.
Employers and the Work Opportunity Tax Credit:
Employers in South Dakota can claim the federal WOTC if they hire eligible immigrants, such as veterans or people with disabilities. This can encourage hiring but does not provide direct tax relief to the immigrant worker.
Background: Why South Dakota Lacks State Tax Credits
South Dakota’s tax system is different from many other states. The state does not have a personal income tax, which is one reason why there are no state-level EITC or CTC programs. Instead, the state relies on sales taxes and property taxes to fund government services.
This approach means that South Dakota residents, including immigrants, do not pay state income tax, but they also do not receive the extra support that state tax credits can provide. In states with a state EITC or CTC, families often get extra help at tax time, which can be a lifeline for those with low incomes.
National Trends and the Push for Change
Across the United States 🇺🇸, there is a growing movement to expand tax credits to include more immigrants. Some states have changed their laws to allow ITIN filers and even undocumented immigrants to claim state EITCs. These changes are designed to help more families escape poverty and build a better future.
In South Dakota, however, there is no sign that lawmakers will create a state EITC or expand tax credits to immigrants in the near future. Advocates continue to push for change, but the state’s conservative fiscal policies make new programs unlikely for now.
What Immigrants in South Dakota Can Do
If you are an immigrant living in South Dakota, here are some steps you can take:
- Check if you qualify for the federal EITC or CTC. If you have a valid SSN and meet all other requirements, you can claim these credits on your federal tax return.
- Explore property and sales tax relief programs if you are elderly or disabled. These programs are open to all residents who meet the requirements, regardless of immigration status.
- Ask your employer about the Work Opportunity Tax Credit if you are part of a targeted group. While this does not give you a direct tax benefit, it may help you get hired.
- Stay informed about policy changes. While there are no new state credits in 2025, it is wise to watch for updates from the South Dakota Department of Revenue or local advocacy groups.
For more details on state tax relief programs, visit the South Dakota Department of Revenue’s official relief programs page.
Looking Ahead: Will Things Change?
While there are no current plans to create a state EITC or child tax credit in South Dakota, national trends suggest that pressure may grow in the future. As more states adopt inclusive tax policies, South Dakota may face calls to follow suit. Immigrants and their advocates should keep an eye on legislative sessions in late 2025 and 2026 for any signs of change.
Key Takeaways for Immigrants in South Dakota
- No state-level EITC or child tax credit exists in South Dakota as of 2025.
- Federal EITC and CTC are only available to immigrants with valid SSNs and lawful status.
- Undocumented immigrants and ITIN filers are excluded from most tax credits.
- State tax relief programs for seniors and disabled residents are open to all who meet the requirements, regardless of immigration status.
- Employers can claim the federal Work Opportunity Tax Credit for hiring eligible immigrants, but this does not provide direct tax relief to individuals.
Staying informed and understanding your options is the best way to make the most of the tax benefits that are available. For questions about state tax credits and relief programs, you can contact the South Dakota Department of Revenue at (605) 773-3311 or visit their website at dor.sd.gov.
In summary, while South Dakota offers limited tax benefits for immigrants in 2025, knowing the rules and exploring all available options can help families make the most of their resources. As reported by VisaVerge.com, the state’s lack of a state EITC or child tax credit puts more pressure on federal programs and highlights the need for ongoing advocacy and awareness.
Learn Today
Earned Income Tax Credit (EITC) → A refundable federal tax credit helping low- to moderate-income workers reduce taxes owed or increase refunds.
Individual Taxpayer Identification Number (ITIN) → A tax processing number issued to immigrants without valid Social Security Numbers for filing taxes.
Child Tax Credit (CTC) → A federal tax credit that reduces tax liability for families with qualifying dependent children under certain conditions.
Work Opportunity Tax Credit (WOTC) → A federal credit available to employers hiring individuals from targeted groups, including some immigrants.
Property Tax Relief → Programs offering refunds or exemptions to reduce property taxes for eligible seniors and disabled residents.
This Article in a Nutshell
In 2025, South Dakota immigrants lack state EITC and child tax credits, relying solely on limited federal benefits. Seniors and disabled residents access some tax relief. Understanding these constraints helps immigrant families optimize resources amid restrictive state tax policies and limited inclusion efforts.
— By VisaVerge.com
