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How you may qualify for a $2,000 tax credit this season

According to the SC Department of Revenue, 25% of people don't know they qualify.

COLUMBIA, S.C. — With tax season right around the corner, many may be eligible for an earned income tax credit and not even know it. 

The Internal Revenue Service kicked off a campaign to help Americans take advantage of the earned income tax credit.

The IRS said people who have experienced a major life change, like their marital status or having a baby may qualify.

According to the IRS, the earned income tax credit is for certain people who work and have low to moderate income. It usually will reduce taxes owed and may also result in a refund.

“If you qualify under the federal guidelines, then it will automatically calculate across to your state tax returns as well," Tom Waring with April Taxes said.

Last year, the IRS said 31 million eligible workers and families received about $64 billion in earned income tax credits. The average amount totaled more than $2,000. 

But local tax preparer Waring said it may be more in South Carolina this year

“In 2022, the legislators passed an increase in the percentage it goes up to, I think, 125, 1.25% in the years to come,” Waring said.

And that earned income tax credit may come in handy because this year there are no pandemic-related deductions, in some cases, causing refunds to be smaller.

“All the stimulus money is passed out and gone. There’s no more available you used to have to reconcile that on your tax returns," he said.

To qualify for the earned income tax credit the IRS said you must have made $59,187 or less last year.

They estimate about 20% of eligible taxpayers failed to take advantage of the tax credit.

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