No matter who your clients are, the South Carolina Department of Revenue (SCDOR) has tax tips to help guide taxpayers wherever they might be in life.
Here are some of the tips from SCDOR that could help this tax season:
For college students: With new Name, Image, and Likeness (NIL) legislation taking effect this tax year, many collegiate student-athletes are filing an Individual Income Tax return for the first time. This new income opportunity for college student-athletes is NOT a change in South Carolina tax law or policy. So, the same policies apply to all South Carolina taxpayers who receive income from NIL (oftentimes called endorsements), regardless of whether or not they are college students or a college student-athlete. Taxpayers who receive income from NIL should receive a 1099 from each business where they earn income. Even if you do not receive a 1099, you should report all income you earned on your return. For tax purposes, income includes gifts (such as gear) and services the taxpayer received as compensation, not just money. For the full news release on tax tips for SC college students, click here.
For families: For a full-year resident, the Child Care Credit is calculated at 7% of the federal child and dependent care expense. For a part-year resident or nonresident, you are not eligible for this credit if you are a resident of a state that does not offer a credit for child and dependent care expense to nonresidents of that state. The maximum credit allowed is $210 for one child or $420 for two or more children. You cannot claim this credit if your filing status is Married Filing Separately. For the full news release on tax breaks for SC families, click here.
For SC homeowners: If you rehabilitate a certified historic residential structure in South Carolina, you may be eligible for a credit limited to 25% of the restoration expenses, which must exceed $15,000 within 36 months. The credit must be taken over a three-year period and has a five-year carryforward. For the full news release on tax breaks for SC homeowners, click here.
For SC low-and moderate-income couples or individuals: South Carolina’s Earned Income Tax Credit (EITC) goes up for 2020 to 83.33 percent of the federal credit, offering more money for low- to moderate-income working individuals or couples, particularly those who have children. Because it is a nonrefundable credit, taxpayers can’t take more credit than they have tax. Taxpayers should first claim the EITC on their federal income tax returns. If they are not eligible for the federal credit, they cannot claim the state credit.