2025 Tax Benefits and Credits for Immigrants in South Carolina

Key Takeaways

• South Carolina may make part of the state Earned Income Tax Credit refundable starting 2025 tax year.
• Senate Bill 108 proposes a $3,000 refundable education tax credit for children in private or home schools.
• Only documented immigrants with valid SSNs can claim state and federal EITC; undocumented immigrants are mostly excluded.

In 2025, several important updates affect tax benefits and credits available to immigrants living in South Carolina. These changes focus on the state Earned Income Tax Credit (EITC), the child tax credit, and other state-level programs. Understanding these updates is essential for immigrant families, tax preparers, and community organizations. Below, you’ll find a clear summary of what has changed, who is affected, effective dates, required actions, and what these changes mean for pending and future applications.

Summary of What Changed

• State EITC: South Carolina currently offers a nonrefundable state EITC, but a new bill could make part of it refundable.
• Child Tax Credit: There is no general state child tax credit, but a new bill proposes a refundable credit for parents who educate their children outside public schools.
• Eligibility Rules: Documented immigrants with valid Social Security Numbers (SSNs) can claim these credits. Undocumented immigrants are mostly excluded, except for some federal benefits.
• Effective Dates: Changes will apply to tax years after 2024 if the proposed bills become law.

Let’s break down each update in detail, explain who is affected, and outline the steps you need to take.

State Earned Income Tax Credit (EITC) in South Carolina

Current Law and Amount

• South Carolina offers a state EITC that is 125% of the federal EITC, but the maximum you can get is $200 per taxpayer each year.
• The credit is nonrefundable right now. This means it can lower your state income tax bill to zero, but you won’t get any extra money back if your credit is more than what you owe.

Recent Legislative Changes

• House Bill 3492 was introduced in January 2025. If passed, it will make part of the state EITC refundable.
• Under this bill, if your state EITC is more than your tax bill, you’ll get 25% of the leftover amount as a refund.
• This change would start for tax years beginning after 2024.

Who Is Eligible?

• To claim the federal EITC (and the state EITC), you must be a U.S. citizen or a documented immigrant for the whole year and have a valid SSN.
• Undocumented immigrants cannot claim the federal or state EITC in South Carolina.
• You must also meet other federal EITC rules, such as income limits and filing status.

Required Actions

• If you’re eligible: File your federal and South Carolina state tax returns. Claim the federal EITC first, then the state EITC on your state return.
• If House Bill 3492 passes: Starting with your 2025 tax return (filed in 2026), you may get a refund for part of the credit if it’s more than your tax bill.

Implications for Pending Applications

• For 2024 tax returns (filed in 2025), the state EITC remains nonrefundable and capped at $200.
• If the law changes, the refundable portion will apply to tax returns for 2025 and later.

Child Tax Credit in South Carolina

Federal Child Tax Credit (CTC)

• The federal CTC is available to families where the parent or spouse files taxes with an Individual Taxpayer Identification Number (ITIN), but the child must have a valid SSN.
• This means some mixed-status families (where parents are not citizens but children are) can claim the federal CTC.

State-Level Child Tax Credit

• South Carolina does not have a general state child tax credit at this time.
• However, Senate Bill 108 (the “Tax Credits for Parental Choice in Education Act”) was introduced in January 2025. If passed, it would give parents a refundable $3,000 tax credit per child for children educated outside public schools (private or home school).
• The bill does not mention immigration status, but children must meet all private or home school standards set by law.

Who Is Eligible?

• For the federal CTC, you can claim the credit if you file with an ITIN and your child has an SSN.
• For the proposed state education credit, documented immigrants with children in private or home schools may qualify if the bill becomes law.

Required Actions

• For federal CTC: File your federal tax return, making sure your child has an SSN.
• For proposed state credit: If Senate Bill 108 passes, keep records showing your child’s enrollment in a qualifying private or home school. File your South Carolina tax return and claim the credit.

Implications for Pending Applications

• For 2024 tax returns, there is no state child tax credit.
• If Senate Bill 108 passes, the new credit would start with 2025 tax returns.

Other State-Level Tax Benefits

• South Carolina allows some deductions for family-related expenses, such as contributions to the South Carolina Tuition Prepayment Program. These are not specific to immigrants and do not provide direct cash benefits.
• The state EITC is currently nonrefundable, but this could change if House Bill 3492 passes.

Background and Context

Federal vs. State Tax Credits

• The federal EITC is a refundable credit for low-income workers. Only U.S. citizens and documented immigrants with SSNs can claim it.
• The state EITC in South Carolina is based on the federal credit but is capped at $200 and is not refundable right now.
• The federal CTC is more flexible for mixed-status families, as it allows ITIN filers to claim the credit for children with SSNs.
• South Carolina does not have a general state child tax credit, but the proposed education credit could help some families.

Immigrant Eligibility

• Documented immigrants with valid SSNs are eligible for both the federal and state EITC, and for the federal CTC if their children have SSNs.
• Undocumented immigrants are not eligible for the EITC. They may be able to claim the federal CTC if they file with an ITIN and their children have SSNs, but they cannot claim any state-level child tax credit.

Step-by-Step Procedures

How to Claim the State EITC (Current Law)

1. Check Eligibility: Make sure you are a full-year South Carolina resident, have a valid SSN, and meet all federal EITC rules.
2. File Your Federal Tax Return: Claim the federal EITC.
3. File Your South Carolina Tax Return: Claim the state EITC (125% of your federal EITC, up to $200).
4. Remember: The credit can only lower your state tax bill to zero. You won’t get a refund if your credit is more than what you owe.

How to Claim the Refundable Portion (If House Bill 3492 Passes)

1. Follow the steps above.
2. If your state EITC is more than your tax bill: You’ll get 25% of the extra amount as a refund.
3. This will start with 2025 tax returns if the bill becomes law.

How to Claim the Proposed Education Tax Credit (If Senate Bill 108 Passes)

1. Enroll your child in a private or home school that meets state standards.
2. Keep records of your child’s enrollment and any required documents.
3. File your South Carolina tax return: Claim the $3,000 refundable credit per child.
4. Submit any required forms as directed by the South Carolina Department of Revenue.

Key Stakeholders and Recent Statements

• The South Carolina General Assembly is responsible for passing tax credit laws. They are currently considering House Bill 3492 (state EITC changes) and Senate Bill 108 (education tax credit).
• The South Carolina Department of Revenue manages tax credits and provides guidance. You can find official forms and updates on their website.
• Advocacy groups like SC Appleseed Legal Justice Center and SC Justice help immigrant and low-income families understand and claim tax credits.

Policy Implications and Expert Analysis

• Inclusivity: Right now, state tax credits in South Carolina are limited for immigrants, especially those without legal status. The federal CTC is more open to mixed-status families, but state-level help is minimal.
• Economic Impact: Making the state EITC refundable and adding a new education tax credit could give real financial help to low-income and immigrant families.
• Future Outlook: If the proposed bills become law, more immigrant families could benefit from state tax credits. However, eligibility will still depend on having legal status and meeting other requirements.

As reported by VisaVerge.com, these changes could make a big difference for many families, especially those who struggle to pay for basic needs or education.

Official Resources and Where to Get Help

• South Carolina Department of Revenue: For tax forms, instructions, and updates, visit scdor.gov.
• South Carolina General Assembly: For updates on bills and laws, visit scstatehouse.gov.
• SC Justice: For help and information for immigrant and low-income families, visit scjustice.org.

Summary Table: Tax Credits for Immigrants in South Carolina (2025)

Additional Considerations

• Undocumented Immigrants: Not eligible for the Earned Income Tax Credit at the state or federal level. May be able to claim the federal child tax credit if their children have SSNs, but not any state-level child tax credit.
• Documented Immigrants: Eligible for all credits if they have valid SSNs and meet residency and other requirements.
• Pending Legislation: Keep an eye on House Bill 3492 and Senate Bill 108. If these pass, more families could get help from state tax credits.

Actionable Takeaways and Next Steps

1. Check your eligibility for the Earned Income Tax Credit and child tax credit based on your immigration status and your children’s SSNs.
2. File your federal and state tax returns on time and claim all credits you qualify for.
3. If you educate your child outside public school, keep records and watch for updates on Senate Bill 108.
4. Stay informed by checking the South Carolina Department of Revenue website for the latest news on tax credits and forms.
5. Seek help from advocacy groups or tax professionals if you have questions about your eligibility or how to claim credits.

For more information about the Earned Income Tax Credit and other tax benefits, you can visit the IRS EITC page.

Conclusion

In 2025, South Carolina’s tax benefits for immigrants are changing. Documented immigrants with valid SSNs can claim the Earned Income Tax Credit at both the federal and state levels, though the state credit is capped and not refundable unless new laws pass. The federal child tax credit is available to mixed-status families if children have SSNs, but there is no general state child tax credit yet. Proposed laws could make the state EITC partially refundable and create a new education tax credit, helping more immigrant families in the future. Stay updated, file your taxes correctly, and reach out for help if you need it.

Learn Today

Earned Income Tax Credit (EITC) → A tax credit for low-income workers reducing taxes owed, sometimes refundable as cash back.
Refundable Credit → A tax credit that can exceed tax owed, giving a refund if credit surpasses taxes.
Individual Taxpayer Identification Number (ITIN) → A tax ID number for noncitizens who cannot get Social Security Numbers.
Social Security Number (SSN) → A unique number issued to U.S. citizens and eligible immigrants for tax and benefits purposes.
South Carolina Department of Revenue → The state agency managing tax collections, credits, forms, and taxpayer guidance in South Carolina.

This Article in a Nutshell

In 2025, South Carolina proposes important tax credit changes for immigrants, including refundable state EITC and new education credits, benefiting documented families with children in private or home schools and requiring valid Social Security Numbers for eligibility.
— By VisaVerge.com