Child Tax Credit in South Carolina, Raising children has never been easy—or cheap. In 2025, with rising living costs across South Carolina, families are feeling the pinch more than ever. Thankfully, the Child Tax Credit (CTC) offers critical financial relief for eligible households. Whether you live in Charleston, Columbia, or rural South Carolina, understanding how to qualify for and claim the CTC can help you save thousands in taxes.

This blog explains everything you need to know about the Child Tax Credit in South Carolina for 2025: how much you can receive, who qualifies, how to claim it, and how families with no income can still benefit. Plus, we’ll share real-life examples, other child-related tax perks, and money-saving tips to help you maximize this vital benefit.

What is the Child Tax Credit?

The Child Tax Credit is a federal tax benefit designed to help families offset the costs of raising children. Eligible families may receive up to $2,000 per child under the age of 17, with up to $1,500 being refundable through the Additional Child Tax Credit (ACTC) if they owe less in taxes.

While South Carolina doesn’t offer its own state-specific CTC, residents fully qualify for the federal credit. This means South Carolina families can reduce their federal tax bill or even receive a refund—even if they don’t owe taxes.

Federal Role in the Child Tax Credit

The CTC is administered by the Internal Revenue Service (IRS), not state tax departments. That means your eligibility and refund come through your federal income tax return. However, South Carolina residents can still take full advantage of the program.

Even though South Carolina doesn’t add its own child tax credit, the state supports families in other ways, such as education tax credits, dependent exemptions, and state-run family aid programs that work alongside the federal CTC.

Eligibility: Who Qualifies for the Child Tax Credit in South Carolina?

To qualify for the CTC in 2025, you must:

• Have a qualifying child under age 17 at the end of the tax year
• The child must be your son, daughter, stepchild, foster child, sibling, or a descendant
• Provide more than 50% of the child’s financial support
• The child must have lived with you for more than half the year
• Both you and the child must have valid Social Security Numbers
• You must file a tax return, even if you don’t owe any taxes

💡 Tip: A qualifying child must not file a joint return unless it’s only to claim a refund.

Income Limits for Child Tax Credit 2025

The 2025 income thresholds for receiving the full CTC are:

• $200,000 for single filers, head of household, or qualifying widows/widowers
• $400,000 for married couples filing jointly

Once your modified adjusted gross income (MAGI) exceeds these thresholds, the CTC is phased out by $50 for every $1,000 above the limit.

How Much is the Child Tax Credit in 2025?

For the 2025 tax year, eligible families may receive:

• $2,000 per qualifying child under 17
• Up to $1,500 refundable through the Additional Child Tax Credit (ACTC)
• No extra CTC from the State of South Carolina

If your tax liability is less than your eligible CTC, you may still receive the ACTC portion as a refund, depending on your earned income and filing situation.

Real-Life Example: The Wilson Family in Columbia, SC

Let’s look at the Wilsons, a married couple living in Columbia with two children under age 17. Their combined income is $85,000.

• They owe $1,800 in federal taxes before credits.
• They qualify for $4,000 in total CTC ($2,000 x 2 kids).
• The $1,800 tax bill is wiped out completely.
• The remaining $2,200 is reduced to a $1,500 refundable credit (due to the ACTC cap).
• The Wilsons receive a $1,500 refund—on top of paying $0 in federal income tax.

How to Claim the Child Tax Credit in South Carolina

To claim the CTC:

1. File IRS Form 1040
2. Complete Schedule 8812 to determine how much credit you qualify for
3. Make sure each child listed has a valid SSN
4. Use tax software or consult a professional if unsure

Even if you live in South Carolina and have no state-specific credit, you can still benefit from the federal refund process.

What About Families with No Income?

Many South Carolina families may think they’re ineligible if they don’t earn enough to owe taxes. But thanks to the refundable portion of the CTC (the ACTC), even zero-income families can receive up to $1,500 per child.

✅ All you need to do is file a tax return.

This is especially important for stay-at-home parents, part-time workers, or those relying on Social Security or unemployment. If you don’t file, you don’t get paid!

Other Child-Related Tax Benefits for South Carolinians

While South Carolina doesn’t offer its own CTC, here are other valuable federal and state-level credits available:

1. Earned Income Tax Credit (EITC)

• Available to low-to-moderate-income families
• Amount depends on income and number of children
• Must file a tax return to claim

2. Child and Dependent Care Credit

• Up to 35% of child care expenses can be claimed (federally)
• Includes daycare, after-school programs, or babysitters

3. South Carolina Dependent Exemption

• South Carolina allows a state tax exemption for each dependent child, lowering state taxable income

4. 529 Education Savings Plan Credit

• While not directly tied to the CTC, contributions to South Carolina’s Future Scholar 529 Plan are deductible on your state tax return

Tips for Maximizing Your Credit (2025)

Want to make the most of the CTC and related benefits? Use these expert tips:

✅ File Early – Filing in January or February ensures faster refunds
✅ Use Free Filing Services – IRS Free File or Volunteer Income Tax Assistance (VITA)
✅ Keep Child Documents Handy – SSN, birth certificate, school or medical records
✅ Don’t Forget the ACTC – If you owe no taxes, still file to get the refund
✅ Check for EITC Too – Many families qualify and don’t even know it
✅ Avoid Scams – Only trust IRS.gov or certified professionals for help

Final Thoughts: The CTC is More Than a Credit—It’s a Lifeline

The Child Tax Credit in South Carolina may not come with a state supplement, but the federal benefit alone can provide thousands in tax relief or refunds. In today’s economy, that’s not just a tax break—it’s a lifeline.

By understanding the qualifications, income thresholds, and filing steps, South Carolina parents can take full advantage of this crucial credit. Whether you’re a single parent in Greenville or a working couple in Charleston, the 2025 CTC can ease your financial load—and bring you closer to the stability every child deserves.

20 FAQs on Child Tax Credit by South Carolina (2025): What Every Parent Must Know

The Child Tax Credit (CTC) has become one of the most valuable financial lifelines for families across South Carolina. Whether you’re living in Charleston, Columbia, or Spartanburg, understanding how the CTC works in 2025 can help you maximize your tax refund and ease the burden of raising children in today’s economy.

Here are 20 frequently asked questions South Carolina parents are asking about the Child Tax Credit in 2025 — with detailed, easy-to-understand answers tailored to your financial future.

1. What is the Child Tax Credit (CTC)?

The Child Tax Credit is a federal tax benefit designed to help families with the cost of raising children. For 2025, eligible families may receive up to $2,000 per qualifying child under age 17. This credit reduces your federal income tax liability, and up to $1,500 is refundable through the Additional Child Tax Credit (ACTC).

2. Is there a South Carolina-specific Child Tax Credit?

No. South Carolina does not have its own version of the Child Tax Credit. However, South Carolina residents are fully eligible for the federal CTC, and there are other state tax benefits (such as exemptions for dependents) that help reduce your South Carolina income tax burden.

3. Who qualifies for the Child Tax Credit in South Carolina (2025)?

To qualify:

• The child must be under age 17 at the end of 2025.
• Must be your biological child, stepchild, foster child, sibling, or their descendant.
• Must have lived with you for over half the year.
• You must provide more than 50% of their financial support.
• The child must be a U.S. citizen with a valid Social Security Number.
• You must file a federal tax return, even if you owe no taxes.

4. What are the income limits for receiving the full credit?

• $200,000 for single filers, head of household, or qualifying widowers
• $400,000 for married couples filing jointly

The credit phases out by $50 for every $1,000 above these income thresholds.

5. How much is the Child Tax Credit worth in 2025?

• Up to $2,000 per child under age 17
• Up to $1,500 refundable if you don’t owe taxes
• There is no increase in 2025 unless Congress passes new legislation

6. What is the Additional Child Tax Credit (ACTC)?

The ACTC is the refundable portion of the Child Tax Credit. If you don’t owe enough taxes to claim the full $2,000 per child, you may receive up to $1,500 per child as a refund, depending on your earned income.

7. What if I have no income — can I still claim the CTC?

Yes. If you had at least $2,500 in earned income, you may still be eligible for the refundable ACTC. You must still file a tax return, even with no tax liability.

8. How do I claim the CTC in South Carolina?

1. File IRS Form 1040
2. Complete Schedule 8812 to calculate your credit
3. List each qualifying child with valid SSNs
4. Use reputable tax software or a CPA if unsure

9. What documents do I need to prove eligibility?

You should gather:

• Child’s Social Security Number
• Proof of relationship (birth/adoption certificate)
• Residency documents (school records, medical records)
• Your own income statements (W-2, 1099)

10. Can divorced or separated parents both claim the CTC?

No. Only one parent can claim the CTC per child per year. Usually, it is the parent who has custody for more than half the year, unless both parties agree via a legal agreement or IRS Form 8332.

11. Can I claim the credit for a child born in 2025?

Yes. As long as your child is born before December 31, 2025, you can claim them as a dependent on your 2025 tax return. Just ensure they meet the residency and support tests.

12. Is the Child Tax Credit considered taxable income?

No. The CTC and ACTC are not considered taxable income. These are credits, not earnings, and will not affect your eligibility for other benefit programs like SNAP or Medicaid.

13. Can I receive the CTC if I live in South Carolina but work in another state?

Yes. As long as you file a federal tax return and meet all IRS criteria, your work location does not disqualify you. However, be mindful of your state tax return obligations in both states.

14. What if my child turns 17 in 2025?

Unfortunately, children who turn 17 before the end of 2025 are not eligible for the CTC. You may still qualify for the Credit for Other Dependents ($500 nonrefundable credit).

15. Can foster children qualify for the CTC?

Yes. Foster children can qualify if they are placed with you by an authorized agency, lived with you for more than half the year, and meet all other CTC criteria.

16. Will the IRS delay my refund if I claim the CTC?

Possibly. Due to fraud prevention laws, the IRS often holds refunds involving the CTC and Earned Income Tax Credit (EITC) until mid-February, even if you file early.

17. What if I forgot to claim the CTC in a past year?

You can amend your tax return for up to three years after filing. Use IRS Form 1040-X and Schedule 8812 for the year you missed.

18. Can the CTC be garnished for back taxes or child support?

Yes. If you owe federal taxes, child support, or certain debts, the refundable portion (ACTC) of your credit may be offset.

19. What are other tax credits for South Carolina families?

• Earned Income Tax Credit (EITC)
• Child and Dependent Care Credit
• Dependent Exemptions on SC State Return
• 529 Plan Deductions for education savings

These benefits can work alongside the CTC to lower your tax burden.

20. How can I get help filing for the CTC in South Carolina?

Use:

• IRS Free File for incomes under $79,000
• VITA (Volunteer Income Tax Assistance) programs near you
• Trusted tax software (like TurboTax, H&R Block)
• South Carolina Department of Revenue for state-specific help

✅ Final Thoughts

Understanding the Child Tax Credit in South Carolina (2025) is essential for every parent. Even though the Palmetto State doesn’t offer its own version, the federal credit alone can save families up to $6,000 (if you have multiple children). Don’t leave that money on the table—file your return, check your eligibility, and secure the financial help your family deserves.