Are you a resident of South Carolina looking for ways to reduce your tax liability? If so, you may be eligible for the Community Development Tax Credit. This program provides an opportunity for those who are doing well to reduce their state tax liability by providing gifts and investments to certified community development organizations across the state. The Community Development Tax Credit is a great way to give back to your community while also reducing your state tax bill. The law has enjoyed strong bipartisan support in the Legislature and is pending renewal this year.
To take advantage of this program, investors can receive up to 50% of their investment in the form of credits against their state tax liability. Organizations that receive tax credits must go through a rigorous certification process that creates confidence that investments will be used effectively and efficiently to create opportunities that benefit many South Carolinians. This is a great way for those who are doing well to create opportunities for others in their own backyard. In addition to the Community Development Tax Credit, there are other tax deductions, credits, and relief programs available depending on your city and county of residence within the state of South Carolina.
Seniors may be eligible for additional deductions on their federal and South Carolina tax returns. The state also accepts the adjustments, exemptions, and deductions allowed on its federal tax return with few modifications. A 5 percent use tax applies to purchases made out of state (including online sales, catalogs, and television shopping networks) by South Carolina residents who have sent or returned tangible goods to South Carolina for “use or storage”. Additionally, South Carolina counties, cities, and school districts impose ad valuem (property) taxes on real and personal property. For more information on South Carolina taxes, contact the South Carolina Department of Revenue or check with your local municipality's tax department. Taxable Social Security and railroad retirement on your federal tax return are exempt from South Carolina income tax.
There are other deductions, credits, and relief programs available depending on your city and county of residence within the state of South Carolina.
