Many taxpayers in South Carolina are set to get a one-time tax rebate this year. This one-time stimulus check from South Carolina will go to residents who have paid state income tax. As of now, it isn’t known how much money the taxpayers will get exactly.
Stimulus Check From South Carolina: Who Will Get It And How Much?
In June, South Carolina lawmakers approved sending $1 billion back to taxpayers. The one-time tax rebate will only go to residents who have paid state income tax, i.e., around 1.5 million filers. It is estimated that about 44% of residents don’t pay state income tax, or don’t have a state tax liability, and thus, won’t be eligible for the one-time tax rebate.
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For the 2019 tax year, the state received about 2.5 million returns. Of the 2.5 million, about 1 million filers had no tax liability, either due to deductions and exemptions, or their income was less than the threshold.
The amount of the stimulus check from South Carolina will equal the taxpayer’s 2021 income tax liability up to $700 under the tax cut legislation adopted by lawmakers. However, the maximum amount could stretch to $800 if the state is left with more money after all returns are filed by the October 17 deadline. Taxpayers can refer to line 15 of their state income tax return to know how much they paid in state income taxes.
More information on this one-time stimulus check is expected to come out only after the Department of Revenue reviews the returns filed by October 17, which is the deadline for tax filers who asked for extensions this year.
When To Expect The Tax Rebate
South Carolina’s Department of Revenue will have to issue the rebates by the end of the year. However, it is expected that the stimulus check from South Carolina will be mailed between late November and early December.
As per the agency, the filing process this year will be much simpler and more direct than it was in 2019. To ensure that residents get the money early, the agency will direct deposit the money into their bank accounts if it has the needed information. As per the agency, about 80% of filers prefer refunds via direct deposit.
The cost of this year’s rebate distribution will depend on how many taxpayers select direct deposit or paper checks for refunds during the tax season, as well as the staff needed to process the one-time rebate.
In 2019, South Carolina state lawmakers utilized the $61 million in tax dollars to send $50 checks to taxpayers. Additionally, the state incurred $700,000 on postage, in order to send the $50 checks to eligible recipients.
The revenue department informed that about 68,000 rebate checks weren’t cashed in 2019, and over 28,000 checks were returned because they were undeliverable. These undeliverable checks were deposited into the state’s unclaimed property program.
