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.
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.
- 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.
- The rebates will be issued before December 31, 2022.
- Be sure your address on file with the SCDOR is current.
- Married couples filing joint returns will receive one rebate.