The South Carolina Department of Revenue has issued guidance to draw attention to the situation that, as of this posting, unemployment benefits are taxable in South Carolina.

The SC General Assembly is considering legislation to address Internal Revenue Code conformity for 2020 along with other specific tax provisions enacted in March 2021 by Congress in the American Rescue Plan Act. If the General Assembly conforms to these Federal Acts in the 2021 Legislative Session, South Carolina would retroactively conform. The SCDOR will issue specific guidance when more information is available.

For more guidance about the tax deadline extension of May 17 for individuals, or for further updates on the status of pending federal conformity legislation, please review Information Letter 21-7 (nine pages, issued March 31, 2021).

For further information regarding this advisory opinion, you may call 202.317.5436. The principal author of the notice is Jennifer Auchterlonie of the Office of Associate Chief Counsel, Procedure and Administration.