South Carolina Taxpayers May Be Getting a Bonus Tax Rebate

Some South Carolina residents will have a little extra money to spend this holiday season in the form of bonus tax rebates.

The state’s Department of Revenue announced on Twitter on Nov. 14 that it has begun issuing state tax rebates to taxpayers who are eligible for the rebates.

In June, South Carolina lawmakers agreed to earmark $1 billion of the state’s $13.8 billion budget for one-time tax rebates for residents. According to an Associated Press article, the funds for the rebate come from excess money the state received from federal COVID-19 pandemic money, budget savings in past years, and a booming economy.

The tax rebate checks will go to South Carolina residents who owed state individual income tax for 2021. Residents who didn’t have income tax liability in 2021 aren’t eligible to receive the rebate.

South Carolina taxpayers must have filed their 2021 tax return by Oct. 17 to receive their tax rebate by the end of 2022. Taxpayers filing after the Oct. 17 extension deadline must file their 2021 tax return by Feb. 15, 2023, to receive a rebate in March 2023.

If you don’t file your 2021 tax return by Feb. 15, 2023, you won't be eligible to receive a tax rebate.

The amount each taxpayer receives will vary up to a cap of $800. The rebate amount is based on your tax liability, which is what’s left after subtracting your credits from the income tax that you owe.

Here’s how to calculate how much your rebate will be:

• Check line 10 on your 2021 South Carolina Individual Income Tax return (SC1040). If that line is blank, you aren't eligible to receive a rebate check.

• If there is an amount in line 10, you may be eligible to receive a rebate. Next, add your refundable credits on lines 21 and 22.

• Subtract the total, if any, from the amount on line 15. If the result is over $1, you’ll be getting a check in the mail.

• For amounts less than $800, that's the amount of your rebate. If the amount is over $800, you will receive the maximum rebate of $800.

If you have an outstanding tax bill with the state, that amount will be subtracted from your calculated rebate. If you owe more taxes than your rebate, the rebate amount will be deducted from your tax bill.

As long as you filed your 2021 tax return before the Oct. 17 extended deadline, you should receive your rebate by the end of this year. The additional rebate will be issued to you the same way you received your tax return. So if your tax return was directly deposited in your bank account, your tax rebate will also be directly deposited to your account.

You can find more information about the South Carolina tax rebates at the state’s Department of Revenue website.