COLUMBIA – The South Carolina Department of Revenue (SCDOR) has begun issuing 2022 Individual Income Tax rebates to eligible taxpayers.
The rebate amount is based on an individual’s 2021 tax liability, up to a cap. As outlined in the legislation approving the rebates, the SCDOR has set the rebate cap – the maximum amount taxpayers can receive – at $800.
Tax liability is what’s left after subtracting your credits from the Individual Income Tax that you owe. If the tax liability is less than $800, the rebate will be the same amount as the tax liability. If the tax liability is more than or equal to the $800 cap, the rebate will be for $800.
When?
If a person filed their 2021 SC Individual Income Tax return (SC 1040) by October 17, 2022, SCDOR have begun issuing rebates and they should be received by the end of the year.
The status of the rebate can be tracked online at dor.sc.gov/rebate-2022. A person will need their social security number or ITIN and line 10 from the 2021 SC 1040.
Those who chose to file their returns after the original October 17 extension deadline have until February 15, 2023 to file their returns in order to be eligible for a rebate. Eligible taxpayers who file between October 18, 2022 and February 15, 2023 will receive their rebate in March 2023.
How?
If a person received their 2021 refund by direct deposit, the SCDOR will use the same bank account to issue the rebate by direct deposit, unless SCDOR was notified of a change in banking information by November 1.
Paper checks will be issued if there was a change in banking information by November 1; received the 2021 refund by debit card or paper check; received the 2021 refund by direct deposit to a prepaid or pay-as-you-go debit card; had a balance due and did not receive a refund; and received the 2021 refund using a tax preparer’s account.
Married couples who filed joint 2021 Individual Income Tax returns will receive only one rebate.
Rebate calculated
Look at a copy of the 2021 South Carolina Individual Income Tax return (SC1040) and check the amount on line 10.
If no amount, there is no tax liability and the person is not eligible for a rebate.
If there is an amount continue to calculate the liability by adding the refundable credits, lines 21 and 22. (This could be zero.) Now subtract those credits, if any, from line 15. If that amount is greater than $1, a person is eligible for a rebate.
line 15 – (line 21 + line 22)
If that amount is less than $800, that amount is the rebate. If it is greater than or equal to $800, the amount received will be $800.
Some taxpayers might receive a lesser amount than that calculation.
A person will receive less than the calculated rebate amount if there is an outstanding Individual Income Tax bill with the SCDOR. This debt could be from the 2021 return or previous years.
If the balance owed is less than the rebate, it will be subtracted from the rebate and the person will receive the remaining amount. If the balance is more than the rebate, the rebate will be subtracted from what is owed, and a person will not receive a rebate.
The SCDOR has sent a Notice of Individual Income Tax Rebate Adjustment to affected taxpayers.
For general rebate information, including how to track the rebate status online, go to dor.sc.gov/rebate-2022 or call the dedicated rebate phone line at 803-722-1958.