What are Law Income Requirements in the State of South Carolina?
Filing tax returns in South Carolina
It is mandatory in South Carolina to file a state tax return, even if you had to file a Federal tax return. For filing of returns, the Department of Taxes is the authority. April 15th is the final date for filing of state returns. If the day is a holiday, then the next business day is when the tax returns for the previous calendar year.
If you are filing returns electronically, then you have additional time and can submit your returns till May 1st.
Failure to file returns by the deadline l will lead to a penalty of 5% of the tax for each month of delay, subject to a maximum of 25% of total tax.
How to file tax returns in South Carolina
You can submit your tax returns:
- Electronically taking the help of a tax preparer.
- Online filing using software available in the market
- Paper return using the forms in the south Carolina tax office website
- On the website of SCDOR by following instructions
Tax rates in South Carolina
The tax rates in the state of South Carolina are organized into six brackets and supports a straightforward system. The prices are as follows:
- For up to $2,970 of income earned, the tax remains zero; there is no need to pay any tax.
- For taxable income between $2,971 and $5,940, you need to pay a tax of 3%.
- If your income is between $5,941 and $8,910, then the tax rate applicable is 4%.
- From $8,911 to $11,880 of taxable income, you would have to pay a tax rate of 5%.
- For taxable income of $11,881 to $14,860, the applicable tax rate is 6%.
- For taxable income that is higher than $14,861, you would have to pay 7% tax.
These tax rates are the same for all types of taxpayers. There are no separate tax rates for different status types like single, married, etc.
Tax Deductions in South Carolina
When you work out your income tax payable in the state of South Carolina, the state income brackets that have been mentioned above will apply to the AGI, i.e., adjusted gross income. This is calculated after making deductions. The applicable deductions include Itemized deduction, standard deduction, etc.
A standard deduction is offered in South Carolina, even though the Federal Govt. has put an end to all inferences. For a single taxpayer, a standard deduction of $12,000 can be claimed. For married taxpayers who are filing their returns jointly, a standard deduction of $24,000 can be claimed. There are no personal exemptions or exemptions for dependents as per South Carolina law.
Tax credits in South Carolina
Substantial tax credits are offered to taxpayers of South Carolina. There are nearly 50 different tax credits that can be claimed. Making use of these credits are beneficial, as they can lead to a reduction in tax and may even help in getting a refund. Some of the tax credits include two wage earner credit, tuition tax credit, motor fuel tax credit, earned an income tax credit, etc.
Taxable income in South Carolina
The following are the sources of income that are taxable:
- Profits from stocks
- Other sources of income
The following causes of income are exempted from taxation:
- Child support
- Some part of the retirement funds
Tax refunds in South Carolina
If you are expecting refunds, then you can call the hotline of the tax office on 803-898-5300, or you can visit the website dor.sc.gov/refund where you can access details of your tax return and find out the status of the refund. A claim for a refund needs to be filed within three years from the date of filing of the original returns.