The South Carolina Department of Revenue (SCDOR) will issue close to one billion dollars in state tax rebates to those who have filed their 2021 South Carolina Individual Income Tax returns on or before the 2022 filing extension deadline of October 17.  State lawmakers approved the rebates in June as they finalized the state budget, and can be expected before the end of the year. This rebate is based on your tax liability up to a currently unspecified amount which cannot be determined until all eligible returns have been filed.

To discern if you are eligible for the South Carolina individual Income Tax Rebate, consider these criteria:

• You must file a South Carolina Individual Income Tax return (SC1040) for tax year 2021 by October 17, 2022.
• You must owe State Income Tax for tax year 2021. This is what tax professionals refer to as your tax liability, or the income tax owed minus any tax credits.
• You classify as a South Carolina resident, part-year resident, or nonresident.

Those who have not filed an SC Individual Income Tax return by October 17, 2022 and taxpayers who have no State Individual Income Tax Liability for the 2021 tax year are not eligible for the rebate.

You can calculate your expected rebate by reviewing your 2021 Individual Income Tax return (SC1040).  On your 2021 SC1040, add your refundable credits, lines 21 and 22. Then subtract those credits, if any, from line 15. That’s line 15 – (line 21 + line 22).  If the difference is less than the rebate cap set by the SCDOR after October 17^th, you will receive the calculated amount.  If it is greater than or equal to the cap, you will receive the cap amount.  The legislation sets a minimum cap of $700 but the actual cap will be set by the SCDOR after the deadline for extension filers.  Taxpayers do not need to send their self-calculation or any additional information to the SCDOR to receive their rebate.

For most taxpayers, SCDOR will issue rebates in the same manner that 2021 refunds were issued.  If you received a refund by direct deposit, the SCDOR will use the same bank account to issue your rebate by direct deposit.  Paper checks will be issued if you received your 2021 refund by debit card or check, you had a balance due and did not receive a refund, or you received your 2021 refund using a tax preparer’s account.  Be sure your address and bank account on file with the SCDOR is current. If your address or bank account information has changed since filing/receiving your 2021 direct deposit refund, notify SCDOR by November 1, 2022. Download the SC5000 and email the completed form to [email protected]

Rebates will be issued before December 31, 2022.  Married couples filing joint returns can anticipate to receive one rebate.  If you have any questions or want more information, reach out to WR SALT, see SCDOR’s 8/10/2022 News Release or visit SCDOR’s rebate homepage.