Moving To South Carolina - A Tax Guide For New Residents printable pdf download

MOVING TO

SOUTH CAROLINA?

A Tax Guide for New Residents

A publication of the

Publication # 1

August 2004

South Carolina Department of Revenue

If you are considering a move to South Carolina or have

All residents at age 65 are eligible for a

been a resident here for years, you may have many

deduction of up to $15,000 from income,

questions about the tax structure in this state. This

regardless

the

source.

The

$15,000

brochure explains the major state and local taxes, such

deduction

must

offset

any

other

as income, property and sales taxes, and a few other

retirement deduction that is claimed. A surviving

taxes with which you should be aware. For more specific

spouse may continue to take a retirement

information, call or visit one of the South Carolina

deduction on behalf of the deceased spouse.

Department of Revenue offices listed in this publication

The $15,000 deduction does not pass along to

or visit the agency's website at

the surviving spouse.

Income Tax

Income received from National Guard or armed

South Carolina has a simplified income tax structure

forces reserve pay for the customary annual

which follows the federal income tax laws. South

training period and weekend drill is exempt from

Carolina accepts the adjustments, exemptions and

tax.

deductions allowed on your federal return with few

modifications. Your federal taxable income is the

Disability income from a permanent and total

starting point in determining your state income tax

disability is deductible.

liability.

Social Security benefits are not taxed in South

Deductions

Carolina.

You do not pay a capital gains tax in this state on

A deduction is allowed for each child under the

property sold in another state. Federal rules

age of 6. The deduction is 100% of the federal

governing the exclusion of capital gains realized

personal exemption, which is adjusted each

on the sale of a personal residence also apply in

year for inflation.

South Carolina.

A deduction is allowed for a special needs

A deduction is allowed for net capital gains held

adopted child.

for two years or longer. The deduction is 44%,

making the effective tax rate 3.9% as compared to

Interest you receive from federal obligations is

the top rate of 7% on all other income. For tax

deductible.

years beginning after 2000, the South Carolina

Credits

holding period is the same as the federal.

Beginning with the first year you receive qualified

Income tax credits which may lower your South

retirement income and until you turn 65, you may

Carolina tax liability are:

take an annual deduction of up to $3,000. You

may take this deduction for income received from

A tuition tax credit allows a 25% credit for

any qualified retirement plan, such as IRAs,

tuition paid to South Carolina public and private

government pension plans, Keough plans and

colleges. The maximum credit is $850 per year

private sector pensions. If both spouses receive

for four-year schools and $350 per year for

retirement income, each spouse is entitled to an

two-year schools. The person who pays the

individual deduction. At age 65, retirees may take

tuition may take the credit. You must take at

a deduction of up to $10,000 from retirement

least 30 credit hours per year to qualify for the

income.

tuition tax credit.

Moving To South Carolina - A Tax Guide For New Residents

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