The South Carolina Department of Revenue (SCDOR) will issue close to one billion dollars in state tax rebates before the end of the year but only to those who have filed their 2021 SC Individual Income Tax returns by October 17, 2022, the filing extension deadline.
State lawmakers approved the rebates in June as they finalized the state budget. This rebate is based on your tax liability up to a certain amount. However, that amount cannot be determined until after October 17, when all eligible returns have been filed.
“We are on schedule to issue rebates by the end of the year,” said SCDOR Director Hartley Powell. “You must file your 2021 SC Individual Income Tax return by October 17 to be eligible. So even if you missed the due date in April, file your return with us by October 17.”
Who is eligible for a rebate:
You must have filed an SC Individual Income Tax return (SC1040) for tax year 2021 by October 17, 2022.
You must have owed state Income Tax for tax year 2021, what tax professionals call tax liability. Specifically, that is the Income Tax you owe minus any credits.
You can be a South Carolina resident, part-year resident, or nonresident.
Who is not eligible:
Those who have not filed an SC Individual Income Tax return by October 17, 2022.
Taxpayers who have no state Individual Income Tax liability for the 2021 tax year.
How your rebate amount is determined:
On your 2021 SC1040, add your refundable credits, lines 21 and 22. Now subtract those credits, if any, from line 15.
line 15 – (line 21 + line 22)
If that amount is less than the rebate cap determined by the SCDOR after October 17, you will receive that amount. If it is greater than or equal to the cap, you will receive the cap amount.
While the legislation sets a minimum cap of $700, the actual amount will be calculated by the SCDOR after October 17. That’s the deadline for extension filers and when we’ll know if we have enough money to raise the cap above $700, as allowed in the legislation.
Taxpayers do not need to send their self-calculation or any additional information to the SCDOR to receive their rebate.
How you will receive your rebate:
For most taxpayers, the SCDOR will issue rebates in much the same way we issued refunds this year.
If you received a refund by direct deposit, the SCDOR will use the same bank account to issue your rebate by direct deposit.
If your bank account has changed since receiving your 2021 direct deposit refund, notify us by November 1. Download and complete the SC5000 and email it to SCRebate@dor.sc.gov. You will receive your rebate as a paper check.
Paper checks will be issued if:
You received your 2021 refund by debit card or paper check.
You had a balance due and did not receive a refund.
You received your 2021 refund using a tax preparer’s account.
Other details:
The rebates will be issued before December 31, 2022.
Be sure your address on file with the SCDOR is current. If you need to change your address, notify us by November 1 of your new address. Download and complete the SC5000 and email it to SCRebate@dor.sc.gov.
Married couples filing joint returns will receive one rebate.
For more information, visit the SCDOR’s website at dor.sc.gov/rebate-2022.
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