SCACPA wants to make CPAs and tax practitioners aware that the South Carolina Department of Revenue has released a four-page Revenue Ruling concerning the new ways to calculate state tax deductions for individuals who itemize deductions according to the new rules of IRC Section 164 under the Tax Cuts and Jobs Act.
In Revenue Ruling 19-1, dated March 8, the DOR provides guidance on how the state tax addback should be calculated for South Carolina income tax purposes. The ruling includes examples that illustrate the state tax addback on the SC 1040 under different scenarios.
The importance of this DOR Revenue Ruling is that SCACPA CPAs who prepare individual tax returns have identified that some software companies are not properly calculating the state tax addback.
If you have further questions after reading Revenue Ruling 19-1, please contact the DOR’s policy division at firstname.lastname@example.org.
Revenue Ruling 19-1: https://dor.sc.gov/resources-site/lawandpolicy/Advisory%20Opinions/RR19-1.pdf